topic Re: CLI in Credit Cards

CLI

GomerPyle — Tue, 21 Apr 2009 22:00:02 GMT

Would there ever be any reason at all for rejecting a CLI? I have a Belk card through GEMB with a current CL of $2,000. They are offering a $4,000 CLI. Can a CLI ever hurt your FICO scores especially with a store card?

Re: CLI

haulingthescoreup — Tue, 21 Apr 2009 22:23:24 GMT

Nope, can't hurt your FICO's. It shouldn't hurt how lenders regard you, either.

The only potential danger, of course, is if you go bananas with it.

Re: CLI

GomerPyle — Tue, 21 Apr 2009 22:35:34 GMT

Never in 10 lifetimes would I ever spend $6,000 at a clothing department store. I cannot imagine why they would even give me a CL like that. I think they are nuts.

Re: CLI

haulingthescoreup — Tue, 21 Apr 2009 22:51:55 GMT

Well, you could get some nice sets of wedding china!

Re: CLI

Anonymous — Tue, 21 Apr 2009 23:27:04 GMT

A CLI won't hurt your FICO score, but I've heard that having too much available credit can hurt your chances for a mortgage. I don't know if that's true or not, though. I'll ask in the Mortgage Forum, as I am going to be looking for a mortgage soon and I have a whole lot of available credit.

Re: CLI

haulingthescoreup — Tue, 21 Apr 2009 23:51:51 GMT

Every once in a blue moon, a mortgage lender makes anxious noises about having quote-unquote, too much available credit. This is not terribly common, though.

The few posts I've read about this just state that the member called one or two of his/her CCC's and said that they needed to temporarily close a card because of a nutty mortgage lender, and that they would be re-opening it within days.

I'd be nervous as all get-out about this, and I'd want to have names of CSR's and of supervisors, both agreeing that they would do this, keeping the original history and all, plus an e-mail to this effect. And then I'd go have a nervous breakdown. History lost can't be regained.

I do believe that for those of us with more-than-adequate CL's ($100K something in my case) and almost-undetectable util, we can put up a brisk defense, showing reports going back for several years that demonstrate that we have always kept our balances under control. And if some lender kept nattering away about it, I'd fight back with my back against the wall. Plus, there are plenty of other lenders out there.

Re: CLI

Anonymous — Tue, 21 Apr 2009 23:54:34 GMT

Yeah, so after I posted this, I started looking in the mortgage forum for this and it seems like it's mostly BS. Go for the CLI, but avoid hard INQs!