How much is to much Credit?

[urban1]

Sorry I didnt address the issues specifically. No time this morning and the days are too busy. Ill post up a response sometime this weekend as credit is an important issue.

If you want info, a great start is equifax or transunion websites which will give you a primer on how your credit score is calculated.

Its a good discussion youve started about getting credit that you dont need. One thing to think about is that when you dont need credit, its easy to get. But when you are in need of credit, its hard or impossible to get. Try applying for a credit card or LOC if you lost your job and need a bit of money to make the mortgage or buy some food.

[DementedReality]

i concur with Urban on this. i say get as much credit as you can when you can. they cant take it away from you, but your situation might change and you may not be able to get it if you really need it.

dr

[albertGQ]

Agreed. Its not the high credit limit thats the problem, its the will power. I say get as much credit as you can when you can, that way when you need it, its available to you

I have two credit cards right now and if I'm unable to pay off the entire bill at month end, I just write myself a BAT cheque from one card to the other. Their interest rates are 3.99% and 4.99%, so both are lower then prime. I also have a $10,000 LOC that I was pre-approved years ago at p+2.75% that I have yet to use

[flamesfever]

Originally Posted by DementedReality

i concur with Urban on this. i say get as much credit as you can when you can. they cant take it away from you, but your situation might change and you may not be able to get it if you really need it.

dr

I agree, having extra credit is handy when you have a tight budget and some unexpected expenditure comes up. However, IMO it should be used as a temporary bridge until you can pay it off and get back on budget. The problem I see with many is that their debt continually increases without any offset in income or assets. The solution in this case I believe is to spend less or make more.

As for whether they can take away your credit, I just read my credit card agreement, and they reserve the right to reduce the credit limit under certain conditions. I would be surprised if this provision is not in all loan agreements.