Should I stop asking for CLIs?

[IcyCool7227]

The last two CLIs were automatic. I read that some credit union credit cards like First Tech and Penn Fed that may deny people with too much credit. There are better cards that give more rewards than what those two offer but I'd like 5% rotating category cards with either Langley or Nissan's CUs. Do those have that sensitivity? What other ones are there that are picky about having too much credit?

Is $16,090 too much credit? I'm only using about 25% of it.

[Momof5]

Simple answer, probably no.  Too much credit is also dependent upon how much income you have and what types.  Most of those here with great credit have CLs higher than that on each card. Personally, I have almost $100K in CC CLs. 

[SouthJamaica]

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@IcyCool7227 wrote:

The last two CLIs were automatic. I read that some credit union credit cards like First Tech and Penn Fed that may deny people with too much credit. There are better cards that give more rewards than what those two offer but I'd like 5% rotating category cards with either Langley or Nissan's CUs. Do those have that sensitivity? What other ones are there that are picky about having too much credit?

Is $16,090 too much credit? I'm only using about 25% of it.

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Don't worry about it. Occasionally you will run across a credit union that will deny a credit application because the applicant has too much available credit, but (a) that wouldn't happen until you get up into the hundreds of thousands of dollars and (b) in my opinion those few credit unions who think that way aren't worth staying with. A couple of credit unions have denied my credit applications for that reason, and when they did I closed my account with them.

Langley isn't like that.

Nissan I don't know.

But at $16,900, it's not something you need to be concerned about.

[JoeRockhead]

Just my opinion but I don't think there's any such thing as too much available credit when it comes to UTI percentages in relation to available credit. There are members here that believe limits should grow organically through auto CLIs. Then there are those that ask for CLIs religiously every time an account is eligible.

There are lenders such as Wells Fargo, along with several CUs that are known to deny applications for "too much available credit". Most times when someone is given this as a denial reason it's because the lender doesn't feel you'll make good use of the their card being you have so much other available credit. With that said, I don't think $16k in available credit is anywhere even remotely close to too much available. I'd consider you to have substantial room to grow your available credit before it's any kind of concern to anyone.  

[FlaDude]

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@IcyCool7227 wrote:

Is $16,090 too much credit? I'm only using about 25% of it.

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I agree with the previous posters. Assuming you have the finacial discipline to not run up debt just because you have credit available, go for it. For many lenders, heavy usage is not a prerequisite to CLIs. In fact, they tend to prefer low util. I've got about $150k of total CL, and many of the CLIs were when my total usage was under 1%. I recently requested a CLI from Lowes and they took me from 20k to 30k on a card that I use 3-4 times a year for typically under $100. 

[markbeiser]

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@IcyCool7227 wrote:

Is $16,090 too much credit? I'm only using about 25% of it.

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The answer to this question is highly dependant on how you manage it.
If you are not paying your balances in full, so are paying interest on that 25% utilization, you may be falling into a trap, and higher limits may just entangle you further in the trap.
Some people are just not credit card people.

If you are at 25% utilization because you run all your spend through cards, then pay your statement balances in full every month, then higher limits will help you a lot, so long as you don't fall into the trap.

I've been sucked into the trap before, and managed to claw my way back out of it. Now my goal is to claw back as much money from banks as I can, while avoiding the ever larger traps.🙂

Not counting my HELOC, I've got nearly double my annual income in total credit limits.
While I never plan on utilizing much of it, it will certainly allow for a heck of a "Bucket List" trip if I'm ever diagnosed with a terminal illness, and only have weeks or months to live!🙃

[Thomas_Thumb]

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@IcyCool7227 wrote:

The last two CLIs were automatic. I read that some credit union credit cards like First Tech and Penn Fed that may deny people with too much credit. There are better cards that give more rewards than what those two offer but I'd like 5% rotating category cards with either Langley or Nissan's CUs. Do those have that sensitivity? What other ones are there that are picky about having too much credit?

Is $16,090 too much credit? I'm only using about 25% of it.

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A total CL between 0.5x and 1.0x annual income is generally not a concern with lenders. Increasing your current aggregate CL should not be an issue.

A 3rd card might be helpful for greater spend flexibility and for boosting total CL. I'd target increasing CL to the point where you are only using 10% of available - as long as the new total remains below yearly income.

[IcyCool7227]

South Jamaica I meant Nusenda Credit Union, not Nissan. There is no Nissan CU. Darn auto correct.

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@SouthJamaica wrote:

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@IcyCool7227 wrote:

The last two CLIs were automatic. I read that some credit union credit cards like First Tech and Penn Fed that may deny people with too much credit. There are better cards that give more rewards than what those two offer but I'd like 5% rotating category cards with either Langley or Nissan's CUs. Do those have that sensitivity? What other ones are there that are picky about having too much credit?

Is $16,090 too much credit? I'm only using about 25% of it.

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Don't worry about it. Occasionally you will run across a credit union that will deny a credit application because the applicant has too much available credit, but (a) that wouldn't happen until you get up into the hundreds of thousands of dollars and (b) in my opinion those few credit unions who think that way aren't worth staying with. A couple of credit unions have denied my credit applications for that reason, and when they did I closed my account with them.

Langley isn't like that.

Nissan I don't know.

But at $16,900, it's not something you need to be concerned about.

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[SouthJamaica]

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@IcyCool7227 wrote:

South Jamaica I meant Nusenda Credit Union, not Nissan. There is no Nissan CU. Darn auto correct.

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Ah, Nusenda.

Actually I don't remember about Nusenda.

But as I said before, at $16,900 you have nothing to worry about.