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Utility Question

Established Member

Utility Question

Hi,
I am planning on buying a house next month. My scores aren't bad 680/701/722. I have a Wells Fargo Platinum Visa, as of right now utility on it is 36%. I have been putting cash on this for quite a while and need to do some home improvements for awhile so I won't be socking a whole lot more at it for a while. Obviously I will keep paying but I am slowing down on paying alot more than minimum. My question is if I request a credit line increase in order to get my utility down to bring my scores up will they hit me with a hard inquiry? I am paying this off when I sell my current house but I need to get preapproved for my next house and don't want to do anything to jeopardize the current scores I have with new inquiries.
4 REPLIES
Senior Contributor

Re: Utility Question

Can't hurt to call and ask what kind of increase is available to you w/o a hard pull.
Community Leader
Epic Contributor

Re: Utility Question

If you are assured that a CLI will be a soft pull, then go for it.  But at 36% curent util,l it would take a heftty CLI to make much diff.  And remember that FICO is usually less than half of what a mortgage lendor considers.  I would be more concerned about bank balances, assets, ect.  when applying for a mortgage than the minimal effect of a quick CLI on my already good FICO score upon appying.
 
Since you are apping for a mortgage within the next month, here is my advice.  Even if you get a CLI with a soft pull, the CLI may not even hit your CR for two months, and may gain minimal awe from your mortgage agent.
And I have person after person tell me that they talk to a customer disservice rep who tells them that the CLI willl not result in a hard pull, and the rep has no idea whatsoever what a hard pull even is,  And it then pops up, with an immediate -10 hit. 
The CCCs seem to be much more prompt in reporting neg info that postive info, so you might see a hard inq hit your CR even before the CLI posts, and thus hurt you.
I simply would leave it alone, and not take the chance on the minimal gain against the potential inq hitting first.  IMHO.  It aint worth it!
Valued Contributor

Re: Utility Question

My question is if I request a credit line increase in order to get my utility down to bring my scores up will they hit me with a hard inquiry?
 
Probably yes. 
 
 
Agree with Robert - leave it alone.
New York Yankees - 2009 World Series Champions. 27... and counting.....
Super Contributor

Re: Utility Question

Dont do it.
 
If they use your mid score of 701, at best you could save .5% but if your mid score drop bellow 700, you could wind up paying almost .8% or more.  This is based on the front page of MyFico on rates by credit scores for home improvment loans.
10/17/2017 FICO: EQ 829 TU 830 EX 826