Refiance question

[fliphusker]

I am hoping to refinance later this year for 2 reasons.  My current interest rate is 7% and to get cash out to finish big remodeling projects on the fixer upper I currently live in.  I recived a free fico score a few months back while my credit debt was fairly high, for me that is.  Will post some things on my situation

2 years after refinance plan on putting my house on the market.

Rebuilt my credit from 480 to 720

Screwed up my credit by canceling a credit card and a dispute over a collection. 4 years ago

Checked my fico score few months back and was 660.

1750 credit line on 2 cards.  One is 2 years old while the other is 8 months old

One has a zero balance, other 800.  (working to zero it out before refinance.

My discover card shows my fico at 638, extremely disappointed.

Here is my big question.  Recieved a credit card pre approved for 1k limit from Merrick, (legit, did my homework) and after 7 months of min payments my credit line will double to 2k.  Should I go for it to gain more available credit?  Have never asked either of my current credit cards to up my limits, should I do so?

Worked really hard to get my credit to where it is/was, sigh, and just do not want to mess things up as I did in the past.  appreciate any help and thanks in advance.

[edcampbell613]

You should be fine. Use it, dont max it, keep it below 50% - 30% max at anytime, and pay it off as soon as you can.

[fliphusker]

Should have said the only time I plan on using it is to double the credit limi and pay it off monthly, with no balance. 

[Revelate]

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@fliphusker wrote:

Should have said the only time I plan on using it is to double the credit limi and pay it off monthly, with no balance. 

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If you're six months out from the refi go ahead and take it, but as you're trending towards zero anyway on your reported balances it won't help that much in the short-term.

If less than six months, I'd skip it from a pure FICO maximization perspective as you already have 2 cards, a third is a minor benefit but one that needs longer time periods (like 6-12 months) to realize.