How does your total credit limit compare to your annual income?
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I’ve heard that you can’t have a credit limit higher than your annual income, but I see a lot of people with very high CL. Is that true?
I have 105 k combined limit, which is of course much lower than my annual income.
Just out of curiosity, how does YOUR total credit limit compare to your annual income?
Total household income is $280 K
Total credit, includihng all lines of credit: $310 K
Total credit limit > Annual income
I guess what you’ve heard is not true…
What you’ve heard isn’t true. Your total credit limit can certainly exceed your annual income.
Anuall income DOES play a role in your CL, but it all depends on your credit and the creditors’ criteria. It’s not unheard of to have Credit limits as much as 2x or even 3x your total annual income.
Annual income about 75 K (pre tax)… Over 150 K in CLs…
$110,000 total houshole income, about $25,000 limits…
I’m at roughly 1.4x income.
$9,600 in total credit limits & one NPSL
Less than my annual income.
Total revolving credit limits are ~ $18k, which is much less than my annual income.
CL $16.5 k in credit cards. Not greater than my annual income.
$40 k on my cards + NPSLs…$17k LOC….$60 k annual…
My revolving credit lines total around $60K, but I’m currently using only about 7% of that. Annual income $80K.
I’m just sitting pretty at $500 total credit, but my excuse is I am new or “thin file” for my Credit. Just enjoying my gardening until I can go after more cards/higher limits.
And with my estimated annual income being about $12,000, I do NOT have more credit than income.
An adviser once told me that the ideal total CL should actually depend on how much you spend and NOT on your annual income.
To be specific: Total CL 10-15 x your total monthly spends. As long as you PIF every month, your total utilization never/rarely exceeds 10%, which is a good in respect to FICO.
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