topic Re: Should I request a CLI? in Credit Cards

Should I request a CLI?

Anonymous — Sun, 19 Dec 2010 21:19:01 GMT

I have 2 credit cards:

Citi Forward, 3.5 yrs old, $3,600 limit

Citi Shell MC, 1.5 yrs old, $500 limit

I have never requested a CLI before but I think my Citi Forward card originally had a $500 limit. They kept automatically increasing the limit until around the time of the mortgage crisis when they stopped. The limit has remained at $3,600 for over a year now. I do not need the additional credit and I pay off both cards in full every month so I don't incur any interest charges. The only reason I'm thinking of asking for a CLI is because I'm looking to get a condo after tax season and I'm thinking this will help increase my credit scores. Here are my scores as of today:

Equifax 722

Experian 725

TransUnion 713

Thanks in advance.

Re: Should I request a CLI?

Creditaddict — Sun, 19 Dec 2010 21:34:27 GMT

yes online, if it just asks for income that's a soft pull, if you get a form that generates asking bank info and stuff, that is a hard pull.

you can request increase every 4 months on both cards, I would be doing it if it was not a hard pull

Re: Should I request a CLI?

DI — Sun, 19 Dec 2010 21:56:00 GMT

go for it. ask for double the amount.

Re: Should I request a CLI?

Anonymous — Sun, 19 Dec 2010 22:33:36 GMT

bball, make sure your CLI request is not a HP like Creditaddict said. If it is a HP, you will loose the score more instead increase it.

Re: Should I request a CLI?

Creditaddict — Sun, 19 Dec 2010 22:35:06 GMT

@Anonymous wrote:
bball, make sure your CLI request is not a HP like Creditaddict said. If it is a HP, you will loose the score more instead increase it.

1 credit pull might not do anything to score, just depends how many poster already has and if more CL would bring util down... could really help score

Re: Should I request a CLI?

Anonymous — Sun, 19 Dec 2010 22:41:41 GMT

@Creditaddict wrote:

@Anonymous wrote:
bball, make sure your CLI request is not a HP like Creditaddict said. If it is a HP, you will loose the score more instead increase it.
1 credit pull might not do anything to score, just depends how many poster already has and if more CL would bring util down... could really help score

Ok, so it is not like opp for a new cc acct ...

If they give you any CLI, that will be good for you. How much of CLI are you looking for OP?

Re: Should I request a CLI?

Anonymous — Sun, 19 Dec 2010 22:45:50 GMT

I have no idea. I don't really need it so any amount that would help my scores. I was thinking of taking DI's advice and asking for double the current limit.

Re: Should I request a CLI?

Anonymous — Mon, 20 Dec 2010 03:09:23 GMT

Do it!

Re: Should I request a CLI?

Anonymous — Mon, 20 Dec 2010 05:18:26 GMT

OP--I'd advise you to think long and hard before increasing a credit line just for the sake of increasing it when you're fixing to close on some property. One of the board posters has a signature line that says have as much credit as you need but not more than you need. That's a pretty good rule. Even if your CS doesn't get dinged the (mortgage) underwriters may ask you why you want more credit. Getting a CLI of $5000 is not much of an accomplishment when the same bank can just as easily hit you with a CLD out of the blue six months later for that much and more. If you really want more credit, then at least close on the property first. Why risk that deal going south over a CLI you really don't need right now?

Re: Should I request a CLI?

MarineVietVet — Mon, 20 Dec 2010 05:41:10 GMT

@Anonymous wrote:
I have 2 credit cards:

Citi Forward, 3.5 yrs old, $3,600 limit
Citi Shell MC, 1.5 yrs old, $500 limit

I have never requested a CLI before but I think my Citi Forward card originally had a $500 limit. They kept automatically increasing the limit until around the time of the mortgage crisis when they stopped. The limit has remained at $3,600 for over a year now. I do not need the additional credit and I pay off both cards in full every month so I don't incur any interest charges. The only reason I'm thinking of asking for a CLI is because I'm looking to get a condo after tax season and I'm thinking this will help increase my credit scores. Here are my scores as of today:

Equifax 722
Experian 725
TransUnion 713

Thanks in advance.

Credit limits themselves are not looked at for scoring. It's the percentage of usage of the CL's each month that is scored. That's why it's recommended so much here to keep your overall and individual card utilization low (<9%).

One approach that seems to work well for most people is have only one of your cards report that <9% balance on it's monthly statement and then PIF before the due date to avoid finance charges. On your other card always have it show a zero balance on it's statement. That doesn't mean you can't use it just time your payments so that the desired zero balance is achieved several days before the statement posts.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Should I request a CLI?

Anonymous — Mon, 20 Dec 2010 11:32:27 GMT

OP, I agree with gangof4 & MVV.

If you're going to be mortgage shopping soon, don't risk INQs for the sake of getting a credit line increase. More credit line isn't what improves your scores-- less debt does. If your utilization was out of whack (you didn't indicate that it was), paying it down would do you more favors than attempting to dilute the impact with higher limits in the mortgage process. An underwriter might look at that as debt pyramiding, and get nervous.

I'd focus my efforts on maximizing the score as MVV suggested, and waiting until after you close & your loan funds to get whatever you desire in new or increased credit.

Re: Should I request a CLI?

Anonymous — Mon, 20 Dec 2010 18:46:14 GMT

My utilization was really high this past month (nearly 50%) due to Christmas shopping. I messed around with the calculator included in the Citi identity monitor thing and it said that I could expect to raise my score at least 20 points just by lowering my utilization to under 10% so I'm going to try that and refrain from asking for a CLI. Thanks for the replies. This is why I asked. I thought it might have a negative impact when looking for a mortgage because even if the credit isn't used, the fact that it's available could be looked at negatively.

Re: Should I request a CLI?

ArisGreek — Mon, 20 Dec 2010 18:49:38 GMT

I want a CLI on my Citi AA World MC but no CL reports since it has a no pre-set spending limit so it's pointless for me.