Credit limits to income ratio...

Pheebs67

easterbunni wrote: »

The point is, it just goes to show that with all the doom and gloom messages we get about the banks tightening their belts and not lending to anyone, especially if their available credit is a particular level, clearly it's not all true...

I could blow 23 grand this afternoon, but I won't...

Surely responsible lending works both ways though? You're just as responsible as a borrower for making sure you don't overstretch yourself as the bank is as a lender . . . (and I'm not saying this is the case with yourself) but . . . IMO This is why so many people get into debt . . . because they see it as the bank's sole responsibility to decide how much credit they can afford to manage rather than doing the sums themselves. . .

I have sufficient credit to provide me with the lending facilities I need . . . and If I chose to max each card out and stop paying the full amount each month, I could happily afford to service the debt. I feel I have the right to brag under these circumstances.

ccf wrote: »

Yip i can. income £21000 available credit £34500. Someone said thats over 150%.

'Someone said thats over 150%' . . . you mean you can't work that out for yourself?

No offence, but if you can't tot up that Thiry-something is roughly a third bigger than twenty-something (and therefore 150%) then I'd be seriously worried that you have access to such available credit!?

Russe11

Theres an article online somwhere that I read which had a american house hold with credit availible over half a million dollars, heading for a million.

I have 1150 with an income on nothing, well not taxable anyway.

GreenSheep

My credit limit on my one card is about 10% of my income - don't really need or want anymore.
I give it a good workout every month and then pay it off in full on payday.
Every few months I make a nice lump of extra money (private work, overflow from my 'house pot', big problems at working creating lots of overtime, etc.) which completely clears my card. Then I start slipping back into it again. But never pay any interest, always clear it.
Working a credit card gives me the ability to save/invest a lot - I make commitments with myself to save/invest a large amount each month and use the credit card to live on basicly. I've got loads of Airmiles too!

Russe11

here it is

http://www.mydollarplan.com/our-credit-limits-over-1000000/

Fingerbobs

This is an interesting discussion. My current total available credit is about 85% of "take-home" salary, but I have a habit of closing down all credit cards I don't actively use. Some I have closed recently had very high limits, so I'm sure I could easily have exceeded 100% of salary without really trying.
That's very, very scary.