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Our Credit Limits: Over $1,000,000!

I recently discussed that we have $223,270 outstanding in credit card balances [1]. The next logical question is how much in credit limits do we have to support this strategy? Over $1 million! $1,020,270 to be exact. The total includes credit cards and lines of credit.

I thought it would be a fun challenge to see if we could come close to $1 million for the third millionaire post. The series looks at the millionaire perspective from various angles. Read the first two: Millionaires in the Making: Pros and Cons [2] and Do Negative Millionaires Exist? [3] I actually didn’t even know the total until I added it up for this article. That could be one gigantic shopping spree if we were ever inclined to try to use it all in one day!

Here are some statistics about the accounts and limits.

Number of accounts: 89

Number of companies: 17 plus 5 retail

Largest credit card line: $73,000

Smallest credit card line: $500

Average credit card line: $11,464

Companies with total limits over $50,000: American Express, Chase, Pentagon Federal Credit Union, Local Credit Union, Citi, Bank of America and Discover.

Most accounts at one company: 19 (Chase), 13 (Citi), 11 (Bank of America)

Breakdown by ownership:

Mrs. Dupaix: $415,750

Mr. Dupaix: $370,800

Helocs: $171,350

Authorized User: $62,370

The limits include two Helocs and four family credit cards which we are authorized users on.

Cards We Have

Here are some of the cards we currently use: Current Quarter Rotating Cash Rewards Credit Cards [4].

Why So Much?

I like to take advantage of 0% introductory rates to make money. I also like to keep lots of available limits on hand to shift them around when one is due. See When Does the 0% Credit Card Really Expire? [5] to read about the difficulty in pinpointing that day. In addition, having lots of cards means lot of offers in the mail [6] to make even more money.

I didn’t actually intend to accumulate this many cards or these limits, it was just a process over the last eight years or so. I rarely close accounts and try to use each card once a year to keep the company from closing the account.

Credit Score Impact

I’m pretty sure this blows the theory that too many cards or limits too high will wreck your credit rating. All of our scores using various models are fine, and we have not had any problems qualifying for the best mortgage and loan rates. I used to monitor our credit daily, but outgrew my interest in tracking it.  

Action Plan

Technically since four cards are authorized users, we need another $42,100 to bump us over the $1 million mark in our own limits. It’s a ridiculous challenge, but one that excites me none the less. I’ll be on the lookout for a new card to apply for! I’ll let you know when I find the right one.