topic Re: Logix FCU CLI in Credit Cards

Logix FCU CLI

Anonymous — Thu, 25 Aug 2016 06:17:56 GMT

My SO was approved for a 7k CL with this CU back in April of this year. She has used it well and made no late payments since then.

Her balance is about $6,000/$7,000 (we transferred all our other card balances to it because it offered a 0 BT fee and 0 apr).

So her UT on this card is a little high but her total UT is about 24%. Her CS likely took a little dip (app'd for a card and a home loan) so before it was 700 on the dot now I'd assume 680.

Do you think they would give her a CLI on this line (it's her highest limit), and if so would they do a HP?

Re: Logix FCU CLI

zerofire — Thu, 25 Aug 2016 14:57:40 GMT

Most banks will want an account to be active for 6 months, 9 months or 12 months before issuing any CLI. I have personally had one bank that flat out refuse to even consider running the report because the account was less than 9 months. Also any application for new credit, weather a new account or CLI, is usually a HP. Very few banks allow a SP. Lastly since you took a home loan after this card you probably did more than dip by 20 points. The massive loan would easilly drop the score by 50-100 points since it would start calculating intrest and have the full amount due higher than the issue amount and doing BT's to almost maxing out will cause your score to plumit due to high utalization. Utalization is calculated by card and in total so even if one card is maxed you will do damage. I would guess the 700 score is now somewhere between 580-620 but it really depends on the real history writen in the report. Ultimately since it has not been 6 months even I would guess they would deny a CLI. You can still call them up and ask what the requirenments are since a lot of reps like to leak useful information in small banks and CU's.

Re: Logix FCU CLI

Anonymous — Thu, 25 Aug 2016 15:02:51 GMT

The home loan was co-signed by my Dad who is the primary on the loan because his score is about 750+. I think they only did the inquiry because I was a signer on the loan and my Dad wanted it to boost my CS.

As for the BT's yes it's bad but I didn't really know that at the time I did all of them. I thought just keep it under 30% total UT and I'd be fine.

Re: Logix FCU CLI

Creditaddict — Thu, 25 Aug 2016 15:42:52 GMT

@Anonymous wrote:
The home loan was co-signed by my Dad who is the primary on the loan because his score is about 750+. I think they only did the inquiry because I was a signer on the loan and my Dad wanted it to boost my CS.

As for the BT's yes it's bad but I didn't really know that at the time I did all of them. I thought just keep it under 30% total UT and I'd be fine.

Having them all on 1 card instead of 4+ cards is WAY better... you did the right thing from a money stand point and a credit stand point.

I would hold tight on the CLI until after 6 months and after making some dents in the original amount you transferred over.

Re: Logix FCU CLI

Anonymous — Thu, 25 Aug 2016 16:36:35 GMT

We transferred over from 3 cards which were at:

55% UT w/18% apr
47% UT w/ 23% apr (rewards card)
45% UT w/ 17% apr

Just thought it'd be easier to manage in one card and it seemed like a no brainier with the 0 apr and 0 BT fee.

Re: Logix FCU CLI

Anonymous — Thu, 25 Aug 2016 16:36:52 GMT

Thanks for the advice CreditAddict!

Re: Logix FCU CLI

austinguy907 — Fri, 26 Aug 2016 19:17:33 GMT

@zerofire wrote:
Most banks will want an account to be active for 6 months, 9 months or 12 months before issuing any CLI. I have personally had one bank that flat out refuse to even consider running the report because the account was less than 9 months. Also any application for new credit, weather a new account or CLI, is usually a HP. Very few banks allow a SP. Lastly since you took a home loan after this card you probably did more than dip by 20 points. The massive loan would easilly drop the score by 50-100 points since it would start calculating intrest and have the full amount due higher than the issue amount and doing BT's to almost maxing out will cause your score to plumit due to high utalization. Utalization is calculated by card and in total so even if one card is maxed you will do damage. I would guess the 700 score is now somewhere between 580-620 but it really depends on the real history writen in the report. Ultimately since it has not been 6 months even I would guess they would deny a CLI. You can still call them up and ask what the requirenments are since a lot of reps like to leak useful information in small banks and CU's.

Some of this is accurate with the 3/6/9/12 mo time open before considering a CLI

CU's tend to HP for CLI's in most cases

The statements about dropping from a 700 to 580-620 are totally inaccurate though. Taking a couple of points 3-20 for a HP depending on the quality of the file is normal.

Taking out a mortgage usually works like this:

Point drop from the inquiry 3-20 points

Mortgage gets funded and sold to a 3rd party after closing

Mortgage doesn't report for anywhere from 1-9 months depending on the lender that picks it up from the originator

Mortgage reports in the same 1-9 month delay resulting usually in a score increase because of the built up payment history due to the delay of reporting

As for maxing out the Logix account it might result in a 10-20 point drop for the balance:limit ratio on the account but, the overall utilization as stated across all accounts is only 24% which will counter any appearance of high utlization i.e. maxing out all of their accounts which would be a bigger drop than just consolidating things to a single card