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Total Credit Limit versus Income ?

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Established Contributor

Re: Total Credit Limit versus Income ?


@Revelate wrote:
Forwarned is forearmed is my thinking Tacpoly.

I have seen others over the years have lender swipe their limits or accounts even in today’s loose UW world. Notable example was Cap 1 which pared back a bunch of limits at 25k and higher anecdotally.

I had done a strategic CLD to 10K on my own Cap 1 tradeline and didn’t get touched.

There are algorithms which go hunting for various consumers that are either risky or probably unprofitable. It has been years since I needed more than 10K on even a default spender in any given month, and as a result that is a tradeline that not only works for me but isn’t outsized.

I have too many accounts for my use case, I can’t argue that at all. Chase is unlikely to screw with me as they know I can go right across the street to BOFA and I am in both of their new target demographics... but when it comes to tradelines that are unlikely to get taken away short of a BK Cap 1 rates highly there and playing needle in the haystack is a good defensive strategy in my opinion.

Attempting to channel the credit force vs the evil algorithms: I am not the consumer you are looking for.

Are you saying that during the recession banks actually reduced the credit limits of people who were paying all their cc bills in full every month?  Or did they slash the limits on people who were only partially paying their cc bills or whose debts may have been increasing, even if slowly?  If the former, then sure, pad limits. But if it was the latter, as I suspect it actually was, then credit limits shouldn't be increased, it should be savings. 

And again, I'm not accusing you of doing this, I'm merely questioning some of the assumptions (and perceived wisdom) prevalent on this forum.

 

Maybe we shouldn't be asking about folks' credit limits but about how much of their limits they can reasonably pay in full every month. 

Message 31 of 54
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Community Leader
Super Contributor

Re: Total Credit Limit versus Income ?

@Birdman7
My TCLs is roughly 12 times my individual income. 8 to 9 times household.

Still have a Capital One CC that hasn't been CLD'd. That gets only $3 reoccurring spend monthly for the last 2 plus years. That card is at $49.5k. They just gave me a $1000 increase on my other Capital one CC.😆
That's why I won't jump the gun reducing limits. If they want to reduce them. They can go for it! lol

 

Every time I obtain a Citi card. I have to speak with a UW for verification. They have never asked me about my available credit..never! 



My most prized tradeline.
Message 32 of 54
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Super Contributor

Re: Total Credit Limit versus Income ?

Wow @Gmood1! I am definitely impressed that is amazing! I don’t know if anyone can top that. That’s pretty impressive!
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 33 of 54
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Super Contributor

Re: Total Credit Limit versus Income ?

@Gmood1 Can I ask what your ratio is with Citi?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 34 of 54
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Community Leader
Super Contributor

Re: Total Credit Limit versus Income ?

@Birdman7
I'm sure there are others that ratio exceeds mine.

Ratio with Citi?
My exposure with Citi is 63% of stated income.
Several big banks do 50% like Chase.
Bank of America has me at 77% of stated income.
Navy Fed 85%
Penfed 50%
Capital One 66%
Discover 34%
Amex 60% was higher they took about 12% from me recently.
US bank 27% not surprising. Lol
Synchrony bank 70%



My most prized tradeline.
Message 35 of 54
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Super Contributor

Re: Total Credit Limit versus Income ?

I’m over 100% with Citi and US Bank is my second highest ironically, not far behind 92%.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 36 of 54
Highlighted
Super Contributor

Re: Total Credit Limit versus Income ?

@Gmood1 Definitely impressed and thank you for the data points.

If anyone does have a higher ratio I’d love to hear from them.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 37 of 54
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Community Leader
Super Contributor

Re: Total Credit Limit versus Income ?

Very impressive Birdman 7!!

US bank is one of my newer lenders. I still believe I can squeeze a bit more out of them. 😆



My most prized tradeline.
Message 38 of 54
Highlighted
Super Contributor

Re: Total Credit Limit versus Income ?

Oh I have no doubt you’ll squeeze a lot more out of them!
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:



 

 

 

 




Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 39 of 54
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Senior Contributor

Re: Total Credit Limit versus Income ?


@tacpoly wrote:

Maybe we shouldn't be asking about folks' credit limits but about how much of their limits they can reasonably pay in full every month. 


I simply like the cushion for utilization, because if my balances posted continuously putting me at 50% or higher. Then it would constantly be affecting my score. Hence why I don't like only having $2-4K CLs across the board. 

And it would require too much micromanaging to PIF prior to the cut date on every account just to avoid such issues. 

 

I would never be able to PIF 70% of my limits per month, my income doesn't support that kind of spend. I also never go above 20% on any given card per month. Just because I have $20K available on several cards doesn't mean I need to buy things I have no use for, or to have the latest toys. So in my mind I use my credit responsibly enough.

 

I'm not sure it's even possible for someone to put 100% of their income through a CC, is it?

 

My ratio is no more than 25% average on all of my cards, with Discover being at 40%.

 






Message 40 of 54
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