It's a common credit-scoring myth that too much available credit will damage your FICO scores. For example, let's say you have ten credit cards and over $150,000 in available credit, yet you only spend about $1,000 per month on all your credit cards combined. Would that be a bad thing for your credit scores?
Many people still believe that having nearly $150,000 in available credit would cause your credit scores to get dinged. However, the truth is that the FICO credit-scoring model never penalizes consumers for having too much available credit. That's just not how the model works.
In fact, in the eyes of the FICO score you can never have too much available credit as long as you continue to only use a small percentage of it. In the example above your credit utilization ratio would be less than 1 percent, which is excellent and would have nothing but a positive impact on your FICO scores.
