Re: Credit Limit Increase versus Hard Pull Hit
09-27-2012 01:06 PM
The CLI will live unless later changed, and thus will continue to have benefit. The affect of any hard inquiry goes away in one year.
If you dont anticipate apping for new credit within the next year, the inq. impact will be gone, and is thus only academic.
Increased CL will provide more spending capability with less future scoring impact, as the same amount carried as a balance each month will represent a lower % util.
That lives past the impact of the inquiry. Plus, it demonstrates to future creditors doing a manual review of your CR that other creditors have assumed the risk of granting you higher debt flexibility on their accounts.
In my opinion, the longer term benefits are clear. Eat the inquriy for a year, and use the higher CL wisely.