How much revolving credit should i have


Just curious as to how much is too much revolving credit?

I've got the following cards and CL:

cap one--1250

5/3rd ---6000

Discover more--4000

Amex Blue cash--2000

Total Merrill cash back--8400

These last 3 I got all on the same day. I understand how someone can have "too much" credit and actually hurt their credit "grade" or what ever it's called. You know, the A,B,C ect. It never occurred to me until someone was talking about it. But he was saying how banks, mortgage lenders, or who ever will sometimes look at that grade also, in addition to your score and judge you on how likely you are to be able to pay your debts if you used all your available credit. Or something like that.

So. question---say someone makes around 80k and the whole household makes about 95-100k. Would almost 22k of credit limits on credit cards be "too much" credit?

For FICO scoring purposes, there is no such thing as "too much available revolving credit", although you can certainly have "too much current debt on revolving credit." There is no FICO score penalty for high credit limits; if anything, it is apt to help your scores.

You should understand that there are other non-FICO "credit scores" that are generally referred to as "FAKO's." You get all sorts of

garbage comments with them.

Lenders might get weirded out at too much credit for a mortgage or another form of credit, this is true. A mortgage lender *might* want you to have less available credit, for fear that you might run up your cards and not be able to pay your note. And some credit card issuers, for instance Juniper/Barclays, give small CL's if they think you already have enough.

That being said, $22K would certainly not be regarded as "too much" by any issuer I can imagine. I hope that you don't think that you should start reducing limits or something. If you're worried about temptation, put a small recurring bill on each card except one and lock them away. Use the remaining one to buy gas; that's bad enough. In other words, don't use credit for anything that you can't pay cash for instead.

I currently have around $92K in total credit limits on CC's and a $50K HELOC (home equity line of credit), and all my creditors seem perfectly happy. Other than Barclays, which is headed toward the shredder. But then, I also have almost no debt, other than the home remodeling expenses and some tuition expenses on the HELOC. That seems to reassure them that I'm not preparing to go off on a toot.

Message Edited by haulingthescoreup on 09-13-2008 02:11 PM


Category: Credit

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