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Will requesting a credit limit increase lower my Fico scores?

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Anonymous
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Will requesting a credit limit increase lower my Fico scores?

I currently have two credit cards. One is a Discover with a $17k limit. The other is a Chase with a $25k limit. The Discover currently has a zero balance because six months ago I transferred the balance to the Chase card. The Chase currently has a $20k balance, $10k at a 3.99 Apr until paid off and $10k at my normal 10.49 Apr. My entire payment goes towards the 3.99 Apr every month which leaves the 10.49 Apr balance untouched. I want to request a credit limit increase from Discover so that I can transfer the entire amount over to that card with a 3.99 Apr (until paid off) for the entire amount instead of $10k. My question is how will this affect my score. I plan on applying for a mortgage soon and don't want to mess things up. Currently my scores are 782, 782, and 776. Thanks for any help. 
Message 1 of 5
4 REPLIES 4
dizzier
Established Contributor

Re: Will requesting a credit limit increase lower my Fico scores?

well increasing the limit will decrease the overall uti, however if a hard inq is needed than the inq can decrease your score.

if they will do a soft inq then i don't see how it can hurt.

i read somewhere on this board that if your CL goes over 30,000 it stops counting in the debt/credit ratio, but i'm not totally sure how this works, but i'm sure others will chime in.
____________________
FICOs: (as of 12-10-08): EX 759 | (as of 01-24-10): EQ 794 TU 756 EX ? | (as of 3-17-11): EQ 794 TU 790 EX ?

Until Chase lowers my ridiculously high APR they can kiss my patootie! Their card has been retired to the sockdrawer. Smiley Mad
Message 2 of 5
Anonymous
Not applicable

Re: Will requesting a credit limit increase lower my Fico scores?

It will help for the better possibily because it will help with your util. Before you ask for the CLI ask will they do a hard or soft pull. If they do a hard pull that will be an inq on your CR, which could ding you slightly.
Message 3 of 5
SmartCookie
Valued Contributor

Re: Will requesting a credit limit increase lower my Fico scores?

I think Discover only does a soft INQ for a CLI, so you wouldn't get a ding there... give them a call and ask.
 
The CLI won't hurt your score, it has the potential to increase it depending on your UTI.
EQ 787 EX 781 TU 737 11/17/07 *** I am not an attorney. If I was, I might not clip coupons. If you want legal advice, consult an attorney. If you want my personal opinion, feel free to consider my posts***
Message 4 of 5
MidnightVoice
Super Contributor

Re: Will requesting a credit limit increase lower my Fico scores?



ladylpk74 wrote:
I currently have two credit cards. One is a Discover with a $17k limit. The other is a Chase with a $25k limit. The Discover currently has a zero balance because six months ago I transferred the balance to the Chase card. The Chase currently has a $20k balance, $10k at a 3.99 Apr until paid off and $10k at my normal 10.49 Apr. My entire payment goes towards the 3.99 Apr every month which leaves the 10.49 Apr balance untouched. I want to request a credit limit increase from Discover so that I can transfer the entire amount over to that card with a 3.99 Apr (until paid off) for the entire amount instead of $10k. My question is how will this affect my score. I plan on applying for a mortgage soon and don't want to mess things up. Currently my scores are 782, 782, and 776. Thanks for any help. 


A couple of points.
 
First, there are suggestions that very high CLs are not calculated as revolving debt - you can tell if your Chase is by checking your util %.  If it is not, then presumably a higher limit on your discover will also stop that counting as revolving.  (I have no personal experience in this area!!!)
 
Second, with scores as high as yours, I don't think an inq and a CLI will hurt you much at all, as long as you don't have a ton of inqs recently!
 

 
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 5 of 5
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