How much of a credit limit is too much?

[Goldy]

We use our credit cards for everything and pay them off in full each month. Is there any reason not to increase the limit as high as the credit card company will let us to help the credit to usage ratio? I wonder how high I could get it, its at 20k right now. Is there any risk with a high limit?

[Permanent Temp]

As long as you are responsible with credit I don't see an issue

[disneysteve]

Our 4 main cards have a combined limit of nearly $100,000. The last time I checked, my FICO was 847 (out of 850). My wife's was 846.

[Goldy]

Thanks for the replies. I know our credit score has been dinged in the past for a high usage to available credit ratio even though we pay it off every month. Do you know if requesting a limit increase will result in a credit check? When I have requested them in the past from AMEX all you do is enter your income and requested limit increase and you get an instant answer.

[ua_guy]

It depends on what you use your credit score for and how high it already is. A limit increase shouldn't decimate your credit score if you're in a top-tier score.

The reason for maximizing available credit so would be if you use credit as an emergency mitigation strategy, you have it if you need it. Or, if you use a card frequently and are bumping up against an arbitrarily low card limit and it's becoming a nuisance, or if you need to float a relatively large purchase short term for some reason and the card can't cover it along with your normal expenses.

[corn18]

A credit increase usually requires a hard inquiry on you credit report.

[bjl584]

Requested a credit limit increase causes a hard pull on your credit. So, it will effect your score, but probably not much, and probably not for very long.