Do credit limit increases have an affect on mortgage scores?

[GirlMelanie89]

Hi guys!

Does anyone know from personal experience, if an increase in credit limits have an affect on mortgage scores? I just increased my Sync bank credit card limits by $30K. I went from $17,100 in available credit to $47,100. Will it make a difference? 

Also, once I take my student loans out of deferment and my (out of deferment payment) updates to the CRA, does that have an affect on scores?

I need 6 more points to get my middle score to 640 and I am just seeing if it's possible before mid May.  Also, I have already paid all revolving debt down to 1% on one account. 

Thanks for any advice/ info you may have!!

[_NERD]

Have the statements cut yet for those Sync TLs, showing the new limits? Are you carrying revolving balances at the moment? If so, then yes they CLIs will help. They'll lower your overall util & if you happen to be carrying balances through the statement cut date(s), the increased limits will lower the util of those individual TLs.

I don't know if you mentioned it in your other post... Do you know your current TU FICO 8 at the time of the CLI requests?

[_NERD]

Oops, didn't see the mention of 1%. My bad. Prolly no impact but more experienced members will weigh in shortly.

[Imperfectfuture]

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@_NERD wrote:
Oops, didn't see the mention of 1%. My bad. Prolly no impact but more experienced members will weigh in shortly.

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That is accurate, unfortunately.  I am carrying 4% at 0%, because of Clis.  My scores also jumped when installment loan (16 months of four years) was paid down to just below 9%.  I can carry that balance at 9% or less for 30 months (Fico reindeer games).  I hate that CU reported more late payments.  The mortgage trifecta does not grow as fast as Fico 8.  If you have installment loan (car? I forget), then paying a lot of that off will help the mortgage score more.

[Imperfectfuture]

PS, some scoring likes if you carry 4% instead of 1%. Some of us garden club members discovered this little tidbit. You could give it a try before the mortgage pull. Let 4% of total credit limit report one card, or spread on two if higher than 30% on one card. Let report, then pay off. Couple weeks, pull scores. If they went up, do it again.

[GirlMelanie89]

Lol. No problem _NERD!

And thank you Imperfectfuture, I will try that. So if I have a $390 balance reporting on a $5000 CL LOC, I should pay it down to $200 (4% of $5000)?

[StartingOver10]

Pull you mortgage scores here (3B report).  The FICO 8 score is not relevant to mortgages so if you are going to track your scores improvements - you may as well use the right score for your future mortgage.  Remember it is a consumer pull here so it doesn't ding your score with an inq.  

[GirlMelanie89]

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@StartingOver10 wrote:

Pull you mortgage scores here (3B report).  The FICO 8 score is not relevant to mortgages so if you are going to track your scores improvements - you may as well use the right score for your future mortgage.  Remember it is a consumer pull here so it doesn't ding your score with an inq.  

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Hi StartingOver10!! I have already pulled my mortgage scores and pulled the trigger with a LO. My mortgage scores are 627, 634 & 641. I pulled it based on being told by a different LO that if I was above 620, I would get a 3.75% rate, and if I got over 640, it would be 3.25%. I was okay with the 3.75%.

Well after the LO pulled my report, he came back with a rate of 4.125% , so I was trying to get my middle score to 640, so I could go down to 4% and then buy down my rate to 3.75%.

[StartingOver10]

I forget - are you going for conventional or FHA?  If FHA, that rate is high. Maybe try another lender?  Lenders do have different rates and costs.  You can get an initial quote without the lender pulling new scores.  Check a few lenders. Make sure you check both your closing costs and your rate because a lender can have high closing costs and a low rate and vice versa.  

[GirlMelanie89]

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@StartingOver10 wrote:

I forget - are you going for conventional or FHA?  If FHA, that rate is high. Maybe try another lender?  Lenders do have different rates and costs.  You can get an initial quote without the lender pulling new scores.  Check a few lenders. Make sure you check both your closing costs and your rate because a lender can have high closing costs and a low rate and vice versa.  

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Lol. Its ok. Its alot of people on these forums, which equate to too much info.  But I am going FHA, so I thought that was high as well. I have emailed Shane and another local lender for a current rate sheet, so I'll see what they say. I will make sure I do that, but is it possible to get a low rate and then the seller pay the closing costs?