Multiple Credit Card Credit Line increase requests

[Anonymous]

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@SouthJamaica wrote:

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From what I have observed in my own case and others, and from what I infer the various reason codes, it is easier to get high FICO scores if you have larger available credit which you're not using much.

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Do you have any particular reason codes in mind?  Also curious if you have any particular people in mind (presumably regular contributors here on myFICO) who are thinking your way on this.  For example, Thomas Thumb, Revelate, iv, manyQuestions, etc?

Assume that we are all in agreement that CC utilization is no doubt a huge driver for score.  The question is whether two people with exactly the same CC utilization and number of $0 balances (etc.) could get different scoring bonuses, because one person had huge CLs compared with the other.  (That's why I gave the case of Bob and Fred -- just to make the situation clear.)

PS.  I am totally not being argumentative!  I am genuinely interested in changing my mind on this and learning something new.

It's worth observing that in the one clear case of a scoring system that I know does care about CLs (the Lexis Nexis model) it rewards you for having a high average credit limit.  Thus, people who have many cards, some of which with smaller limits, actually do worse than a person with fewer cards but with CL more tightly concentrated in fewer tradelines.

[SouthJamaica]

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@Anonymous wrote:

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@SouthJamaica wrote:

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From what I have observed in my own case and others, and from what I infer the various reason codes, it is easier to get high FICO scores if you have larger available credit which you're not using much.

---

Do you have any particular reason codes in mind?  Also curious if you have any particular people in mind (presumably regular contributors here on myFICO) who are thinking your way on this.  For example, Thomas Thumb, Revelate, iv, manyQuestions, etc?

Assume that we are all in agreement that CC utilization is no doubt a huge driver for score.  The question is whether two people with exactly the same CC utilization and number of $0 balances (etc.) could get different scoring bonuses, because one person had huge CLs compared with the other.  (That's why I gave the case of Bob and Fred -- just to make the situation clear.)

PS.  I am totally not being argumentative!  I am genuinely interested in changing my mind on this and learning something new.

It's worth observing that in the one clear case of a scoring system that I know does care about CLs (the Lexis Nexis model) it rewards you for having a high average credit limit.  Thus, people who have many cards, some of which with smaller limits, actually do worse than a person with fewer cards but with CL more tightly concentrated in fewer tradelines.

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It's just my opinion based on my experience and everything I've seen.

[Anonymous]

Quick shout out to our OP (tKetch):

My friend SJ and agree about tons of FICO-related stuff.  And I think he would tell you that one of the questions I asked you earlier is important, namely "do you have any open installment loans?"  If you don't, this is THE important thing for you to work on, given that you already have four cards and a very low utilization.  We can definitely give you a technique for getting a good extra 30-35 points.if you don't have an open loan.

Don't hesitate to keep working with SJ on techniques for enlarging your credit limits via SOFT pulls.  SJ knows all about that.  Big CLs are always nice for convenience -- it's just that you shouldn't IMO expect any score increase from that.

You will also find that time itself will cause your score to go up, as your accounts age and any inquiries fall off.

[brother7]

Assuming your spending pattern remains the same, having larger CLs will result in lower % utilization which generally means higher credit scores.

Based on this logic, if your goal is generally higher credit scores, then I would recommend applying for CLIs only if they are soft pulls, i.e. Discover and Capital One via their respective websites.

That's my 2 cents. Good Luck!

[Anonymous]

I disagree with SJ's opinion above regarding higher credit limits somehow being a positive for FICO scoring purposes.  Outside of utilization of course.  I agree with CGID that overall available credit doesn't matter.

There are kids that are 19-20 years old with short credit history with say 2 starter cards with $300 and $500 credit limits that can possess scores of 800.  

I went years of having only a single credit card with a relatively small limit and I had scores in the 790-810 range for a decade.  My overall credit limits now are over 10x that, and my scores are in the 750-770 range.  The additional credit lines did not improve my scores one bit.  This is pretty easy to tell also when you go from say $4k in available credit lines to $90k in 2-3 cycles.  Utilization is what matters, and a $300-$400 balance on $4k in credit lines or $90k in credit lines yields essentially the same exact result scoring wise.

[tketch]

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@Anonymous wrote:

If each card's utilization isn't above 2% a credit line increase won't really help. What could help is letting only one show a balance and have everything else show $0.00.

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Thanks mryflyguy.   I've always thought that what you say is true, and always had the best score when the balances were tuned that way.   However, in an experiment over the last few months I did this:

1.  completely paid off all balances. My score suffered by 9 points, apparently for being too responsible.  
2. I left balances greater than 0  and less than 6%,  and put the balances first on  1, then 2 then 3 cards. My score didn't change. Instead it remained  just the  same as just one card with a small balance and the rest paid off.
3.  This month I will try putting balances on all 4 cards with about 5% Usage.   

So far I'm convinced that the 6% rule works no matter how its distributed.

Im wondering if ou have experiences that prove this differently.

[tketch]

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@Anonymous wrote:

....  "do you have any open installment loans?"  If you don't, this is THE important thing for you to work on, given that you already have four cards and a very low utilization.  We can definitely give you a technique for getting a good extra 30-35 points.if you don't have an open loan.

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Thanks CreditGuyInDixie,   I’m interested in what you may have to say about installment loans and their effect on scores.  I have 2 mortgages, and the  4 CCs but no Installment loans.  I had a HELOC for about 15 years that I paid off and closed in August this year.   It was listed as an installment loan on credit reports. I thought it might  affect the credit mix and mess with the score. But it didn't. Instead my score remained near its recent high after the installment payoff.  You seem like you are speaking from wisdom and experience.  What should I do?,

[SouthJamaica]

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@Anonymous wrote:

I disagree with SJ's opinion above regarding higher credit limits somehow being a positive for FICO scoring purposes.  Outside of utilization of course.  I agree with CGID that overall available credit doesn't matter.

There are kids that are 19-20 years old with short credit history with say 2 starter cards with $300 and $500 credit limits that can possess scores of 800.  

I went years of having only a single credit card with a relatively small limit and I had scores in the 790-810 range for a decade.  My overall credit limits now are over 10x that, and my scores are in the 750-770 range.  The additional credit lines did not improve my scores one bit.  This is pretty easy to tell also when you go from say $4k in available credit lines to $90k in 2-3 cycles.  Utilization is what matters, and a $300-$400 balance on $4k in credit lines or $90k in credit lines yields essentially the same exact result scoring wise.

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Once again.....

"all other things being equal".

[tketch]

And I thought there would be a simple answer!  Thanks all -- This is educational indeed.

I am going to help this situation by applying for the increase  and reporting back on how well it worked.   

The reason I think that greater credit limits will increase FICO score is this:

1. I saw someplace that most of “FICO high achievers have credit limits at $50,000 or higher”,  probably  in association with one or another credit report.  This implies that a higher credit limit would  increase my score. I suppose that causality comes into question: Are high achievers  offered higher  credit limits,  or  do higher credit limits breed better scores as I’m speculating here?  
2.  MYFico account dashboard has a ‘highlighted action” section that recommends   “get a credit card with a 2,500 credit limit.   Simulated credit scores show that  the score would go up by 15.
3. When I got a new Credit Card in January of this year with a 5,500 limit my FICO score went up by 8 points.   However, I was carrying about  45% usage at the time,  and the new card knocked it down to 36%. So I can’t say whether the improved  score was due to CLI or Usage.

I don’t have much to lose either way right now but want the best credit for possible refi next year.  My last inquiry is over a year old, so I don’t think I’ll be damaged much if one shows up.

 I plan to test SouthJamaica’s  theory of soft0 pull v hard pull  CCs and  lend fodder for the current kerfuffle with voices in support of no action, forcefully argued by CreditGuyInDixie .  Next month   I’ll  ask Discover and Capital one for increased limits.    When it all registers with CRAs I’ll let you all  know what happened .

[Anonymous]

Hello tKetch!  Here is the info you wanted about the Share Secure Loan technique.  Just read the first few posts.  It will give you all the info you need. 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

You mention that you have two mortgages.  Are they open loans?  I.e. you are still making payments on them?  If so, as the guidance explains, you already have open installment loans and the Technique is unlikely to help you.  You still might be able to help those of us who are following the technique, so if you'd be willing to let me send you a PM I will explain how.

Great idea to use SJ's approach of soft pulls ONLY for CLIs.