general question about CLI

[goldengopher1991]

Hi guys,

Just got a couple of brief general questions about a credit line increase.

1. Are CLIs documented and mentioned anywhere on your credit file? Ie. When lenders pull your credit file, would they know what limit you first started out with and what increases you got and when you got it?

2. Do CLIs result in an increase in credit score? I know the concept of lowering utilization.. but generally speaking, without taking into account the lowering of util.. does a CLI boost your credit score since it shows you're capable of being trusted with more credit?

Thanks.

[Kenny]

Lenders and you are also able to see your history of your credit limit. I've seen it for sure on Transunion and on my Experian report. It wouldn't be surprising if Equifax has or will have this in the future, as well.

Any competent underwriter would be able to tell under manual review when a HP happened an the TL in question changed. Does it matter? Only the same amount that is your number of inquiries.

The only way that a credit limit increase helps you is by lowering your utilization. For people who PIF this doesn't matter. For people who carry balances or let a large amount post to their CR, then the more available credit, the lower your utilization percent.

Since utilization represents 30% of your FICO score, it often times results in an increase in score.

I hope that I've covered the questions sufficiently. If not, please someone add on to this. Here is a useful thread that you might be interested to read:
http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-Scoring-101-START-HERE/m-p/8169

[takeshi74]

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@KennyRS wrote:
For people who PIF this doesn't matter. 

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Only if PIF'ing before the cutoff for balances to report.  Once can certainly PIF by due date and have high utilization report.

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@goldengopher1991 wrote:

Do CLIs result in an increase in credit score? I know the concept of lowering utilization.. but generally speaking, without taking into account the lowering of util.. does a CLI boost your credit score since it shows you're capable of being trusted with more credit?

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Keep this in mind:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Utilization is "Amounts Owed".  Your CL's (as well as your perceived responsibility with your CL's) are factored into utilization so there's no need to account for them separately.