topic Re: Benefits of CLI in General Credit Topics

Benefits of CLI

Anonymous — Wed, 29 Jul 2015 23:21:57 GMT

Hello, I'm new so if this question has been asked, I apologize. I'm wondering what are the benefits of increasing credit lines? For example, does it improve credit score? Thanks.

Re: Benefits of CLI

Scupra — Wed, 29 Jul 2015 23:50:10 GMT

@Anonymous wrote:
Hello, I'm new so if this question has been asked, I apologize. I'm wondering what are the benefits of increasing credit lines? For example, does it improve credit score? Thanks.

Welcome to myFICO! The increase itself does not make your score go up. If it puts your utilization in a better spot, that could make your score go up.

Re: Benefits of CLI

JagerBombs89 — Thu, 30 Jul 2015 00:24:26 GMT

@Anonymous wrote:
Hello, I'm new so if this question has been asked, I apologize. I'm wondering what are the benefits of increasing credit lines? For example, does it improve credit score? Thanks.

Overwhelming feeling of accomplishment.

Re: Benefits of CLI

RobertEG — Thu, 30 Jul 2015 01:03:39 GMT

The CLI increases the denominator in your overall % util calculation, which, if you dont increase your spending (i.e., the numerator) will result in a decrease in your overall % utilization.

However, credit card companies expect, from their extensive user data, that most consumers will, when they get a CLI, also increase their card usage, maintaining approx the same % util thst they had prior to the CLI. Ergo, more $$ in their pocket, and thus their reason for granting CLIs.

If you have will power to use the CLI to reduce your % util without the impulse to increase spending,then it can be a score benefit.

Most consumers dont have that will power......

Re: Benefits of CLI

Scupra — Thu, 30 Jul 2015 06:31:40 GMT

Amazing explanation as always Robert! Thank you

Re: Benefits of CLI

takeshi74 — Thu, 30 Jul 2015 12:56:00 GMT

@Anonymous wrote:
For example, does it improve credit score?

If you have not already then start here. It doesn't cover everything but it is a starting point.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

As stated above, limits factor into revolving utilization which itself factors into Amounts Owed, the second biggest factor in the link above.

Re: Benefits of CLI

Anonymous — Fri, 31 Jul 2015 17:56:48 GMT

Okay, thanks everyone. Outside of the personal satisfaction that could be gained there is also a proponent to CLI that, if used, could increase your score. The utilization factor and CLI takes on a strategic affect when used correctly. Again, thanks.