Does having too much credit give you a low score?

[jmc0]

"Does just having that much credit hurt my credit report and FICO score?"
No
But 'will having too much credit cause you to be denied'
Maybe, it'll depend on the situation.

Getting a few hundred thousand in unsecured debt isn't too hard. A few $30K credit cards and LOCs as well as a $50K LOC will easily bring you there. But if banks grant you limits like these you are the most prime credit risk there is.

Would love to get 300k+ unsecLOC, but it's not that easy. For the many people starting fresh today, they'll have problem going from 0 credit into 150k unsec in today's enjoinment.

One thing I notice, bank might give 300k unsec to a professional student applying. But if that same person didn't apply until after graduation (and working), the bank likely won't give her that amount.

edit update answer:

I thought those unsecured LOCs magically transformed into loans after graduation.

It depends on the financial institution. The professional student I talked to said their's remained a ploc, but she ‘only’ got 150k with special consideration for more. But I know many newly working graduate from these same professional program [whom are debt free with excellent credit], that can’t even get 75k unsecLoc because they apply too late (i.e. no longer students). One would think working professionals are more credit worthy than students, but of course financial institution have their own way of calculating/giving these thing...

[bubble.tea]

...Doing this would ...

Make you an Americain. LOLz. I'm always amazed to hear of people on that financial judy (whatever her name is) show saying they have $125K in Debt. WHO THE HECK accumulates that much debt? Does it REALLY take a genius to figure out that you're not supposed to live 'on credit'? :ROLLEYES:. SERIOUSLY.

Can someone tell me my fico scrore for freeeeeeeeeeee?

[gizmo8]

That's true and all.

But when it comes down to applying for something, then yes the amount of credit has an affect.

For instance if he tries to get a new credit card, they might see how much credit he has, and deny him the card just because of that.

the more you apply for credit the lower the FICO score.I canceled all my cards except two.Thats all I need.If you do cancel your card they will ask you why,tell them you dont use it that much,DO NOT tell them you cannot afford having it.

[f00kie]

the more you apply for credit the lower the FICO score.I canceled all my cards except two.Thats all I need.If you do cancel your card they will ask you why,tell them you dont use it that much,DO NOT tell them you cannot afford having it.

While cancelling the card itself does not lower your FICO score, it most likely lowered yours, and in the long term, will definitely lower your score. The general consensus is that unless the cards cost you an annual fee, don't cancel them.

The two ways it reduces your score are: lowers your utilization, and, after it falls of your credit report in 6-7 years, it will lower your average age of accounts.

[pshch]

While cancelling the card itself does not lower your FICO score, it most likely lowered yours, and in the long term, will definitely lower your score. The general consensus is that unless the cards cost you an annual fee, don't cancel them.

The two ways it reduces your score are: lowers your utilization, and, after it falls of your credit report in 6-7 years, it will lower your average age of accounts.

Actually it raises your utilization because debt remains the same but total credit is reduced so ratio goes up.
Also it will lower average age of accounts only if closed card is old.

Taking into account identity theft I would keep number of cards manageable (which may be 2 for one person and 20 for another) which means one can check all of them at least once a month.

[f00kie]

Actually it raises your utilization because debt remains the same but total credit is reduced so ratio goes up.

Oops, that's what I meant.

[EugW]

Taking into account identity theft I would keep number of cards manageable (which may be 2 for one person and 20 for another) which means one can check all of them at least once a month.

That's exactly why I close my unused accounts. I keep enough credit around to keep my credit utilization ratio quite low, but see it as a potential trouble spot to have so many accounts that I might forget about one or two.

Plus, sometimes stupid things happen that you can't foresee. For example, I emptied my ICICI HiSAVE account last year but didn't close it right away. Then, a month later, ICICI charged me 1 cent because it felt it had overpaid me 1 cent in interest. Thus, I've technically been overdrawn by 1 cent for 5 months, through no fault of my own. (I wonder how much this will affect my credit score, if at all.) Even worse, I can't even close the account now because I'm overdrawn, yet they won't accept a 1 cent (or even 1 dollar) deposit from me because the amount is too small.

[Jacklad]

Plus, sometimes stupid things happen that you can't foresee. For example, I emptied my ICICI HiSAVE account last year but didn't close it right away. Then, a month later, ICICI charged me 1 cent because it felt it had overpaid me 1 cent in interest. Thus, I've technically been overdrawn by 1 cent for 5 months, through no fault of my own. (I wonder how much this will affect my credit score, if at all.) Even worse, I can't even close the account now because I'm overdrawn, yet they won't accept a 1 cent (or even 1 dollar) deposit from me because the amount is too small.

So, deposit $19.99 and withdraw $20.

And it won't affect your credit score - bank accounts only get reported if there is a negative balance that goes to the collection stage.

[tng11]

So, deposit $19.99 and withdraw $20.

And it won't affect your credit score - bank accounts only get reported if there is a negative balance that goes to the collection stage.

You mean, deposit $20.01 and withdraw $20, no?

[EugW]

You mean, deposit $20.01 and withdraw $20, no?

Not sure, but it might be as high as $100.01 (and withdraw $100). It's not the money, it's the principle of the thing, and the fact that I've run into so many problems with their online banking system that I'm not keen on handing them any more money. I will probably be forced to do that though, which means they hold my 100 bux hostage for a week before it clears, assuming they don't screw up things yet again.

And it won't affect your credit score - bank accounts only get reported if there is a negative balance that goes to the collection stage.

Good to know. Thx.

[Jacklad]

You mean, deposit $20.01 and withdraw $20, no?

That's exactly what I meant.

Pesky negative numbers.