Credit limit in total

Sncjw

I don't look at the score because I know it's a load of bull. 

I looked at credit karma and it states that I have 20k of credit available in total and I only earn just under 22k..I am not needing any other credit at the moment as I just got a new credit card. 

But I am amazed that I have that in total.  Is it possible to have more credit than you earn or do credit providers allow you to go over. I find that insane that they can offer that much credit.

This is not taking in account my mortgage.

MorningcoffeeIV

Yes, it's perfectly possible. 20k isn't a high total by any means.

Sncjw

MorningcoffeeIV said:

Yes, it's perfectly possible. 20k isn't a high total by any means.

Thanks I think 20k is alot. But then again I am quite sensible in my credit history. Never paid any interest and also paid off in full or on time. 

DullGreyGuy

What are you adding up? Just credit cards, overdrafts and other revolving credit or are you including loans? (and if so, current or original balance)?

Well the other one that will do your noodle is what about charge cards which have no set limit? Or to use the marketing slogans, are unlimited? In reality it's not unlimited but other lenders have no idea how much you'd be allowed to put on it when trying to consider how much your total credit exposure is. Been a while since I checked but from memory it was just under £50k for a single transaction which it said it'd approve if I wanted it to. 

Nebulous2

I've had over my salary in credit card limits for the last 20 years, mainly because I'm not always good at closing cards I no longer use. At times I've had over twice my salary. 

It has had very little impact, in fact I think it has helped. Lenders look and see the credit card limits I have already and give me the same.... 

Alex9384

Well, my annual income is just a tiny bit above yours and
I have almost 46k combined limit on 6 credit cards. I also had a charge card which I closed down a few months ago.

Vinknut

I don't see why not.  One of the uses of a credit card is for purchase protection - so if you've saved a few years for a big holiday it's quite conceivable that you will have saved a large proportion of your salary, buy the holiday via cc. and then pay it off in one lump when it statements.

They don't expect you to spend the whole limit every month and pay it off every month.

noh

Like Nebulus2 above. I am very lax at closing credit cards, I have been stoozing on and off for most of this century sometimes applying for multiple credit cards on the same day.
I currently have over £125k total credit limit across around 19 credit cards. Thats more than 4 times my income.

goldieandblackie

Who needs 19 credit cards, you need to seek out help.

Dandytf

goldieandblackie said:

Who needs 19 credit cards, you need to seek out help.

No where near 19 though more than double annual part time wages in total limits.
I'm helping myself 2023 starting with closing Pulse, Chrome and another.

MalMonroe

What do Experian, Equifax and Transunion say about your credit limit though? 

It's all very well having high credit availability but it's the paying it back that makes me wince. 

If I have the money I'd rather just pay. If I don't, I'd rather just wait. 

I've been in heavy debt before and I do not want to go down that road again. It took me a long time to recover.

As for 19 credit cards, I'm afraid I simply don't believe it, sorry noh. Call me a cynic. I have three and perhaps that's two too many but they're all paid off in full at the end of every month. If, indeed, they have any balances on them. . .