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JUJU-SF
Posts: 6
Registered: ‎09-01-2009
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INCREASING CREDIT CARD LIMIT: GOOD IDEA?

[ Edited ]

Hello,

 

In July my median score was 767. I was in the middle of a financing and got the vbest rate.

But lately they pulled another credit report showing 728, and argued I will pay another 0.25% interest :smileysad:

 

I looked in detail at my credit score and beleive that I found the soruce of the trouble, just want to confirm what to do:

 

I have an AMEX with a current credit limit of  $4,800. It is a common card with my wife and AMEX proposed to her to increase it to $25,000 but thought it would be a bad idea. However, in my last credit report the balance on this card is $4,000, or 80% of limit.

 

We paid off the balance and now i am wondering whether I shoudl increase the limit to $25,000, leave it as is or something in between?

 

I know in theory the debt ratio measuring your balance/your limit is what coutns, so in that sense increasing the limit should be good since it si offered.

 

But would I then be penalized because I am increasing my avaialble credit?

 

Also, I heard having a low ratio on revolving credit is a good idea, but how low should it be to get optimal score?IS zero revolving credit use the best?  I heard if you do not use the cards at all, it is nto good either?

 

 

THanks for yoru advice!

 

Juju 

 

 

Message Edited by JUJU-SF on 09-01-2009 10:04 AM
Message Edited by JUJU-SF on 09-01-2009 10:05 AM
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?

[ Edited ]

Welcome to the forums!

 

There is no penalty incurred when you increase your CL's. However, if you are enganged in a yet incomplete real estate financing transaction I would not do it. Merely returning that account to a PIF status will recover your original FICO score. (Assuming you haven't done anything else to stir the pot and as soon as the account reports to the CRB's. That may take a  while as Amex cards report behind.) After your financing is completed you can go ahead an obtain whatever kind of CLI's you want.

 

Optimal credit UTIL is:

  • Total UTIL of >0 and <=9%, the lower the better, and
  • Reporting a balance on less than half of your revolving TL's, and
  • Reporting a balance on half or less of all TL's.

 

 

Message Edited by creditwherecreditisdue on 09-03-2009 07:47 AM
New Member
JUJU-SF
Posts: 6
Registered: ‎09-01-2009
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?

[ Edited ]

Thanks for the answer.

 

I have done nothing else than getting my total revolving form 3k to 8k and one credit card is at 90% usage. Mys core dropped 40 pts from 767 to 728 in a month! 

 

I was plannign to use rapid rescore to fix the issue immediately. I have used it before and it worked.Good idea?

 

While I understand what you say at high level, sorry I am not familair with all the terms:

 

PIF

TL

UTIL

 

Also, when you say:  "Reporting a balance on less than half of your revolving TL's"

 

Does it mean that I shoudl a ZERO balance at least on 50% of my credit cards to be optimal?

 

Thanks much for the help!

 

Juju

Message Edited by JUJU-SF on 09-01-2009 10:57 AM
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?


JUJU-SF wrote:

Thanks for the answer.

 

I have done nothing else than getting my total revolving form 3k to 8k and one credit card is at 90% usage. Mys core dropped 40 pts from 767 to 728 in a month!  Yeah, that will do it. Good news is it is easy to fix.

 

I was plannignto sue rapi rescore to fix the issue immediately. I have used it before and it worked.Good idea? Any way that you get that account to report after the balance is brought down is fine.

 

While I understand what you say at high level, sorry I am not familair with all the terms:

 

PIF - Pay/Paid in Full

TL - Tradeline

UTIL - Utilization

 

Also, when you say:  "Reporting a balance on less than half of your revolving TL's"

 

Does it mean that I shoudl a ZERO balance at least on 50% of my credit cards to be optimal? 50% is half. It needs to be less that half of your revolving TL's. (3 and not 4 if you have 8!) CC's are revolving TL's, but not all revolving TL's are credit cards. Don't forget the third leg of the UTIL equation.

 

Thanks much for the help!

 

Juju


 

Senior Contributor
score_building
Posts: 3,559
Registered: ‎01-10-2008
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?

[ Edited ]

JUJU-SF wrote:

Thanks for the answer.

 

I have done nothing else than getting my total revolving form 3k to 8k and one credit card is at 90% usage. Mys core dropped 40 pts from 767 to 728 in a month! 

 

I was plannign to use rapid rescore to fix the issue immediately. I have used it before and it worked.Good idea?

 

While I understand what you say at high level, sorry I am not familair with all the terms:

 

PIF = pay in full

TL = trade line

UTIL= utilization of CL

CL= credit limit 

 

Also, when you say:  "Reporting a balance on less than half of your revolving TL's"

 

LESS THAN  50% of ALL ACCOUNTS and less than 1/2 of credit card accts (revolving accts) should report any balance to be optimal.


 

Message Edited by score_building on 09-01-2009 12:13 PM
FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
New Member
JUJU-SF
Posts: 6
Registered: ‎09-01-2009
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?

Hello score_building and creditwherecreditisdue,

 

Great info, thanks.

 

However I am a little confused still :smileysad:, can you make that last clarification:

 

You first said:

 "Reporting a balance on less than half of your revolving TL's" will improve my score. I understand this to be equivalent to "Reporting a zero balane on MORE than half of your TL's will improve my score".

 

But then Score_building said: "should (have) a ZERO balance at least LESS THAN  50% of my ALL ACCOUNTS"

 

Please tell me which is true to be optimal:

 

 

  1. I need to keep MORE than half of my TLs  (5 or more out of 8) with a  ZERO balance
  2. I need to keep LESS than half of my TLs (3 or less out of 8) with a ZERO balance

 

 

Finally, the bank I am using is saying they aer happy to re-pull a credit report but do not use any "rapid rescoring". If I just fix the issue and wait for the Credit companies to report it, it will be over a month, so I need to use a rapid rescore service. Could you point me to a service I could use, a brokeer willing to do this for me, or point me to a website that would do that for me (but due to timing I coudl do the loan with them). You can also contact me directly if you can do this for me! I am in the SF Bay Area.

 

Thanks again.

 

Juju 

 

Senior Contributor
score_building
Posts: 3,559
Registered: ‎01-10-2008
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?


JUJU-SF wrote:

Hello score_building and creditwherecreditisdue,

 

Great info, thanks.

 

However I am a little confused still :smileysad:, can you make that last clarification:

 

You first said:

 "Reporting a balance on less than half of your revolving TL's" will improve my score. I understand this to be equivalent to "Reporting a zero balane on MORE than half of your TL's will improve my score".

 

But then Score_building meant to say: "should (have)  LESS THAN  50% of ALL ACCOUNTS report any balance"

 

Please tell me which is true to be optimal:

 

 

  1. I need to keep MORE than half of my TLs  (5 or more out of 8) with a  ZERO balance CORRECT
  2. I need to keep LESS than half of my TLs (3 or less out of 8) with a ZERO balance

 

 

Finally, the bank I am using is saying they aer happy to re-pull a credit report but do not use any "rapid rescoring". If I just fix the issue and wait for the Credit companies to report it, it will be over a month, so I need to use a rapid rescore service. Could you point me to a service I could use, a brokeer willing to do this for me, or point me to a website that would do that for me (but due to timing I coudl do the loan with them). You can also contact me directly if you can do this for me! I am in the SF Bay Area.

 

Thanks again.

 

Juju 

 


 

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
New Member
JUJU-SF
Posts: 6
Registered: ‎09-01-2009
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?

ALL CELAR NOW! 

Thanks again,you guys ROCK!

I wish i knew about this forum before, really useful!

 

Juju 

Established Contributor
cobaltnv
Posts: 640
Registered: ‎09-02-2008
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?

You could also call your credit card companies after you pay in full and ask them to do an intracycle update. If you explain that you are working on a mortgage and need to show this account PIF they will (usually) comply and update.
TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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New Member
JUJU-SF
Posts: 6
Registered: ‎09-01-2009
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Re: INCREASING CREDIT CARD LIMIT: GOOD IDEA?

> You could also call your credit card companies after you pay in full and ask them to do an intracycle update. If .

> you explain that you are working on a mortgage and need to show this account PIF they will (usually) comply and > update.

 

EXCELLENT IDEA and probably cheaper!!!! I iwll try this frist :smileyhappy:

 

Julien 


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