CLI effect on FICO

[Anonymous]

I am trying to get my fico up as high as possible over the next few months before I apply for a mortgage and was wondering if anyone has an idea of how much a CLI will typically effect your fico. I currently only have 2 cc's. I'm considering asking my credit union for a CLI on my visa I have through them, but I know they typically require a HP for CLI if they haven't had one within the last year. So I guess my question is more specifically, will a CLI, assuming my utilization is about the same 10% or so outweigh the HP to get the increase?

[Anonymous]

If your utilization is low (less than 10%), a CLI will make it even lower, but not necessarily do anything for your score.  The bigger gains are achieved when dropping high utilization (like 75%) way down.

Utilization has other components, for example proportion of cards with reported balances, maxed out cards, and so on, and it may be worth looking at these factors.

[Anonymous]

Ok thanks. I'm thinking it's not worth the HP then. As I said, my utilization is always kept between 0-10% and wouldn't change much even with the CLI.

[Anonymous]

If I were you I would add diversitication instead, by getting a store card.  The added advantage is that if you use the checkout trick you don't get HP, and get additional credit for no cost.  A win, win.

[Anonymous]

Would you mind explaining the shopping cart trick? Not sure I've heard of that before.. Currently I have student loans, an auto loan and 2 cc's. Will adding a store card really help my score?

[Anonymous]

You ARE diversified, but it can add a little something to the FICO score.  That was you concern, right?

The checkout trick, of which are dozens of thread is basically going to certain store websites like Victoria's Secret, HSN... and choose a product and start the process of paying, only to be interrupted by a pop-up screen that offers you that store card with no need for a HP.  If you search for it, you will find all the information.

[Anonymous]

Yes, that is my concern. Every point I can gain over the next 3-6 months is my goal! And I will read over the threads to check in to that. Seems kind of crazy, but if it works it works. Lol. Thanks!

[juggalo9er]

while the shopping cart while add a new card to your report, it will also drop your aaoa. hard to say which will weigh heavier in the end

[Anonymous]

Good point. My aaoa is about 8 years right now since I have few accounts and my student loans are split up into several different accounts and are pretty old. I don't think one or two new accounts will hurt it much but definitely something to consider.

[Anonymous]

Adding a store card without a hard pull will drop your AAoA, and you'll take a hit for a new TL.

If you already have low utilization, it won't help you, and a new CL like $250 won't do much for utilization even in the best of circumstances.