Why do credit cards give you credit lines vastly greater than your annual income?

[APL]

I had two Citibank credit cards, the credit line on them combined was about equal to my annual income.

In addiction, I had other Visas, Mastercards and store cards which when combined with my Citibank had my credit limit at almost three times my salary.

These cards have all been maxed for several years, with me just making minimum payment on them and the pre-approved offers just kept coming.

Why do they do this?

[lillymarlene]

Maybe to ensure that you'll be in debt forever. My credit cards were like that too. Then a few years before I filed BK one company MBNA that was later "swallowed" by Bank of America, offered to consolidate my debt including my mortage. This would have been at least 3x the amount I am paying out for everything now!

[LadyInTheRed]

It is pretty amazing how much credit these companies will give you if your credit score is high enough. I always joked to my husband that with how much available credit we had between us, we could get a couple hundered thousand dollars in cash advances and leave the country.

Why do they do it? Because they make a lot of money on fees and interest and have no problem with you being in debt to them for the rest of your life.

[APL]

I always joked to my husband that with how much available credit we had between us, we could get a couple hundered thousand dollars in cash advances and leave the country.

That is so funny, and with the stress and sleeplessness this whole BK has me under - it is a very tempting idea!

[banca rotta]

What's interesting about this business is it's the only business I can think of that wants their customers to fail.

Whatever business is out their they all pretty much want their customers to succeed so they can come back and patronize them.

Also most businesses love their customers and hate their competitors.

Banks all work with their competitors to screw their customers. They raise your rates for being a day late with a competitor for any reason. Who else does that???

Mathematically it's just not possible for anyone rich or poor to carry large CC balances indefinitely. The end game usually becomes default.