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  1. #1
    Ignoring "credit cards are teh eval!!", and assuming a very low utilization rate (around 1-2%), when does the ratio between total credit limit and family income (DW and I) become too much?

    Currently, ours is 87%.

  2. #2

    Too much total CC credit limit

    I have no idea what the magic formula is, but it does exist. Our broker asked us to lower our credit limits when we refinanced several years ago because we had too much available credit. I don't know what the utilization rate was back then, but it is at 1% now and we really haven't changed spending habits. I'm guessing we would have been at around 70% credit limit to income back then.

    Do you have access to a credit monitor with your credit cards? It would probably tell you if your ratio was too high.



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