IS there such a thing as TOO MUCH credit availability?

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Replied by 2darnbroke on topic I heard that, too

I have been told that creditors don't like to see huge amounts of open credit in case you go on a spending spree right after getting your loan or new card. Maybe there is a certain ration that they like to see or it could be depending on your income?
5 years 2 months ago #16
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Replied by Egghead on topic That's shocking.

If you can't trust the 'expert' advice of a banker what hope is there? Personally I'd have been looking for some kind of compensation for the damage this person caused through what seems to be random and harmful advice.
5 years 2 months ago #17
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Replied by Nuovocapitolo on topic Re: IS there such a thing as TOO MUCH credit availability?

after taking the advice to close some accounts at the direct of a banker who I thought knew what she was talking about my score has tanked almost 20 points cause the credit ratio went up.

Back to following what I know and should have stayed with. My TransUnion was almost 700 which is excellent in my opinion. Now I have to work at getting my scores back up. UGH! minor set back.
6 years 2 months ago #18
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Replied by patrick12 on topic Re: IS there such a thing as TOO MUCH credit availability?

That's a BOGUS request if I have ever heard of one! I had no problems with my interm construction loan or permanent financing for my new home, I had almost $200,000.00 in unsecured credit available to me and the lender never once blinked at it! In fact, they ran my mortgage through their desktop underwriting system and it instantly went Approved/Eligible no problems? Were talking about a mortgage loan that had to meet Fannie Mae guidlines and be sellable at closing, granted my credit union decided to portfolio my mortgage because my fixed rate was 3.875% on a 30 year, but still, as long as you have no major balances and your DTI is in spec, what you have available to you shouldnt matter. I would suggest to you, to shop other lenders, mortgage companies and brokers tend to give bad advice, even if it puts you in a bad position credit wise. Credit Unions are the ONLY way to go in my opinion, they normally have cheaper closing costs, they are straight forward with you, and are member focused.
6 years 4 months ago #19
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Replied by Wanderer on topic Re: IS there such a thing as TOO MUCH credit availability?

I was told by a banker that I had too much available credit and that if I ever wanted a mortgage or any other type of non-revolving credit that I better close some accounts. I did this and got rid of $13,500 in available credit. The banker also told me that my credit score would not change and cited her 19 years as proof positive she knew what she was talking about. I knew better and am waiting for my credit score to tank; but she did have a point of having too much credit out there.

Any one else have experiences like this?

Hmm... never had this feed back. Did a home loan and they did not want to see recent credit or loan apps but no reference to closing accounts. Probably had $60K in credit cards.
6 years 4 months ago #20
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Replied by CreditAgnostic on topic Re: IS there such a thing as TOO MUCH credit availability?

I was told by a banker that I had too much available credit and that if I ever wanted a mortgage or any other type of non-revolving credit that I better close some accounts. I did this and got rid of $13,500 in available credit. The banker also told me that my credit score would not change and cited her 19 years as proof positive she knew what she was talking about. I knew better and am waiting for my credit score to tank; but she did have a point of having too much credit out there.

Any one else have experiences like this?


When I applied for my mortgage, I was told I needed to close certain credit cards, for the approval to process without a hitches. This was due to me also having too much available credit. I asked for a reason. Answer: "Because it poses a probable risk of debt increase that would or could impact my ability to make the mortgage payments."

This was based on my income.
6 years 4 months ago #21
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was created by Nuovocapitolo

I was told by a banker that I had too much available credit and that if I ever wanted a mortgage or any other type of non-revolving credit that I better close some accounts. I did this and got rid of $13,500 in available credit. The banker also told me that my credit score would not change and cited her 19 years as proof positive she knew what she was talking about. I knew better and am waiting for my credit score to tank; but she did have a point of having too much credit out there.

Any one else have experiences like this?
6 years 4 months ago #22