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What is too much credit?

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tcbofade
Super Contributor

Re: What is too much credit?


@Yasselife wrote:

@tcbofade Could you share how many cards you have? I plan to deal with WF in the future.


According to Experian, I've got 46 credit cards, one personal loan, and one mortgage.

 

...and that's almost correct... one of those credit cards is actually my daughters and I have no idea why it shows on my Experian report.  It does not show on Equifax or TransUnion and I am NOT an authorized user on it... but she's a responsible kid, so far, so good.  Smiley Wink

04/01/24 Fico 8: EX 763, EQ 799, TU 783.
Fico 9: EX 756 03/13/24, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 11 of 19
Horseshoez
Senior Contributor

Re: What is too much credit?

Wow, I just read this thread and feel very, ummm, under-credited (if there is such a term).  In my case, while I use a credit card for literally all of my monthly expenses except my rent (I rent from an older couple who wants a good old fashioned check), my total available credit is only 6.1% of my annual income.  That said, I'm pretty happy where I am from a credit perspective, and other than maybe wanting a Delta SkyMiles AMEX card, I have no want, need, or desire to apply for more than the three cards I already have.  Smiley Tongue

 

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 12 of 19
Yasselife
Valued Contributor

Re: What is too much credit?

@Horseshoez There are times when I want a minimalist approach by having 3 cards max, but then I want to expand my credit relationship with other lenders which also have attractive products, and I think to myself I want to start building history rather now than later for diversity in case something new comes up, needs and options. Finally, I find this credit game(to me) fascinating and fun, specially in this forum where we share news and general topics, along with collecting cards, a sign of credit maturity imo for those who use it responsibly. 
   Out of all my cards I benefit from having 4; groceries, gas, transit, dining, everything else... I try to maintain my starter cards alive having subscriptions or purchasing an energy drink; not a big deal, even though I'm a low spender.

   






Message 13 of 19
FireMedic1
Community Leader
Mega Contributor

Re: What is too much credit?

As long as they keep approving me. I go for cards that reward me for purchases I make. I considered myself a business. I want to make a profit on using the banks cards. They already make a profit when you swipe that card. Once you pay interest there goes your profit. So each card below gets use for when I make a purchase on a certain catagory. It isnt to have many cards just to have cards. So with all the approvals yes its a nice buffer that I will never reach. Unless I want to claim BK again and thats not happening. You see a card that will reward you. Go for it. I think I've avg'ed $1000+ each year in profit. Its all a number game. It isnt how much of a total credit line you have. Its how much profit you can make by the cards you have in your wallet.


Message 14 of 19
tcbofade
Super Contributor

Re: What is too much credit?


@tcbofade wrote:

 

...and DW and I have $642k in available credit.  Y'all made me look!  Smiley Happy


Updated weekly Excel sheet.  Added one new account for DW, and several credit line increases.

 

DW and I have $661,200 in Total Revolving credit lines. 

 

How much is too much?

 

Couldn't tell ya.  Smiley Wink

04/01/24 Fico 8: EX 763, EQ 799, TU 783.
Fico 9: EX 756 03/13/24, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 15 of 19
Anonymous
Not applicable

Re: What is too much credit?

Will add that my experiences include lenders that have treated me well over the years but will not offer nor approve credit limit increases. Able to get one lender to admit that when reviewing external available credit coupled with my internal credit limits and INCOME they would not consider more credit risk.

Today for me that is three lenders. Citi Bank no increases since 2014, USBank no increases since 2017 and FNBO who said no increased since 2019.
Message 16 of 19
SouthJamaica
Mega Contributor

Re: What is too much credit?


@BenTramer1978 wrote:

So I recently got approved for a couple cards so my overall credit with all cards combined is about to double and I don't make a lot of money. However I do keep it at 2% utilization. So im asking in general at what point do you start making lenders nervous and start turning you down? How much credit should you have in comparison to how much you earn? 


The only lenders that have ever turned me down for having too much available credit are credit unions.

 

On the other hand, there's no point in ruining your credit scores by adding new accounts you don't need.


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 712 TU 710 EX 708

Message 17 of 19
Anonymous
Not applicable

Re: What is too much credit?

All of the posts before me have been full of great information! And I echo the sentiments and thoughts of everyone. I will add that many times the bank will look at your exposure with them in comparison to income vs overall credit limits to income. Some FIs will cap around 50% exposure, some will do 100% exposure without batting an eye, and there are reports of NFCU allowing 200% exposure Smiley Surprised

Message 18 of 19
GatorGuy
Valued Contributor

Re: What is too much credit?

Vast majority of banks only care what your exposure is to them. They will let you know when they don't want to extend anymore credit to you based on your income.

 

Most people decide to start cutting back cards on their own due to simplying their finances before they ever hit any "credit limit".

 

There are very few conservative banks that look at your overall exposure and might deny you based on that. 

Message 19 of 19
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