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.
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!
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.