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| *Loan,banking and credit>>>credit line |
Will requesting a Credit Line Increase affect my FICO score? |
I know that by getting higher limits and keeping my total debt to available debt ratio low I can increase my score, but I'm worried that by calling my bank and requesting a credit line increase I may cause credit inquiries that have an adverse effect on my FICO rating. Can anyone illuminate me? If you already have a credit card or line of credit with the creditor asking for or receiving an increase in your line of credit should not affect your credit score. As they would be just doing a soft check of your credit history. As y ou stated if you receive an increase and keep your debt at the current level this should result in an increase in your credit score. It will actually help your score as your debt to income will be lower (are you going to use the new full line, if that's the case, your score will go down). One pull from your bank will not hurt your score. Multiple credit pulls from different types of companies will hurt it (all banks within a certain # of days is counted as 1) Good Luck No, it will actually help it - as long as you don't use up that extra amount of credit that you were granted. For instance, if you have a credit card with a line of $2000 and you have charged $1500 on it, that is going to hurt you. Credit reporting agencies want to see that you use no more than 50% of the credit line you are granted on any particular card. So if you think you are just going to spend the extra amount that you are granted, then just know that it will probably hurt your credit more than anything. Advice: ask for increase in credit but do not use it. Then keep your balance at less than 50% of the credit line. Mortgage loan processor - 3 years. No, not in most cases... There are two different kind of credit inquiries one initiated by you and the other initiated by a creditor. If you bank or credit company says to you we need your approval then you initiated the inquiry, which will temporay lower your credit score. However most credit card companies are just jumping at the chance to give you more credit so, they may already established to allow you to increase your limit to a certain point, or will increase your limit to a certain point based on your payment history with them. |
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