Applying for credit cards and overall credit limit--is too much credit hurting me?

Annie H.

Egalatarian
I confess I've been doing this half-ass for the past couple years mainly because we wanted to buy a house and didn't want to mess up our credit. Now that's over and I'm ready to go but I keep seeing all sorts of conflicting advise. I also keep seeing folks talk about having several of the same CC and other kinds of churning and I'm intrigued. But then I see advice about HPs and danger of too many apps per in 90 days.

Let's say I have income of--$75K (not my real name :) and total credit across 10 CCs of $95k, $20K as an UA and $25K for a business card (I've seen different reports as to how business credit counts w/regard to individual credit). That's $140K, 800+ FICO and 1-2% utilization. I can't seem to get any sort of data points on how usual, unusual this is. I'd love to apply for more cards -- (got UA Exp business and Citi AA 3 weeks ago, app for Barclay's US Air is pending).

It seems me that I'd be better off either lowering the limits on some of my cards or cancelling them outright in order to make room for more cards/CLs. Why or why not? I'm about to let my UA Exp go because AF is due and I don't expect a waiver 3rd yr. Should I ask to transfer the CL?
I'm going to do recon on US Air and wonder if I should ask to transfer CL from Arrival Card. I'd like to drop Arrival anyway since it wasn't obtained with a bonus and I'd like to apply down the road.

Any and all comments are very welcome and thanks!
 

Matt

Administrator
Staff member
I confess I've been doing this half-ass for the past couple years mainly because we wanted to buy a house and didn't want to mess up our credit. Now that's over and I'm ready to go but I keep seeing all sorts of conflicting advise. I also keep seeing folks talk about having several of the same CC and other kinds of churning and I'm intrigued. But then I see advice about HPs and danger of too many apps per in 90 days.

Let's say I have income of--$75K (not my real name :) and total credit across 10 CCs of $95k, $20K as an UA and $25K for a business card (I've seen different reports as to how business credit counts w/regard to individual credit). That's $140K, 800+ FICO and 1-2% utilization. I can't seem to get any sort of data points on how usual, unusual this is. I'd love to apply for more cards -- (got UA Exp business and Citi AA 3 weeks ago, app for Barclay's US Air is pending).

It seems me that I'd be better off either lowering the limits on some of my cards or cancelling them outright in order to make room for more cards/CLs. Why or why not? I'm about to let my UA Exp go because AF is due and I don't expect a waiver 3rd yr. Should I ask to transfer the CL?
I'm going to do recon on US Air and wonder if I should ask to transfer CL from Arrival Card. I'd like to drop Arrival anyway since it wasn't obtained with a bonus and I'd like to apply down the road.

Any and all comments are very welcome and thanks!
As far as I know, and I don't know it all by a long way, but closing cards isn't a good solution. If you find a specific bank that says you have too much credit, then you just transfer lines across. When you are the levels you mention then closing a line or two won't kill you on Utilization ratios, but I can't see it offering a lot of value either.

At the very least, if you do decide to close, close newer lines so you keep the age of accounts- but personally I wouldn't unless I hear something from some credit pros on here.
 

BoonDR

Level 2 Member
Only place where it can really hurt right now is with a mortgage, with with revolving credit and smaller lines of credit, IME the banks rarely look at total available credit(outside of what that bank has extended). Every bank will be different but for the most part the extension of credit for revolving accounts is far more liberal about that area of concern.

If you are seeking a mortgage, the concern becomes real and you'll have to find out what the lender wants to see.
 

Annie H.

Egalatarian
I just did recon with Barclays (not used to this as usual approvals are automatic). Contrary to what I've read on FT that Barclays doesn't *move* credit, that's what they offered to do-- only way I was going to get the card. I moved 2/3 of CL and was told I could close the card and move CL anytime in the future.

After all the reading I've done I still don't understand how some folks are able to churn and either have 2-3 of the same cards--AAdvantage comes to mind-- or churn repeatedly to get bonus. I'm missing something here esp. with an 830 FICO.
 

Haley

I am not a robot
What you are missing is that it is not logical.

It will not map to income nor assets. You just have to embrace the chaotic nature of credit application approvals.

If it makes you feel any better, it used to be much more illogical.
 
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