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Utilization before requesting CLI with Navy?

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nmjacobs
Contributor

Utilization before requesting CLI with Navy?

In March I will have 3 statements and over 90 days for my cash rewards card. It's currently almost maxed out. Any data points to share on utilization and its effect on approval? All of my other cards are at 29%. I have a payment due for this one on 3/6 and then I'd like to hit the love button.
Message 1 of 15
14 REPLIES 14
oldman425
Frequent Contributor

Re: Utilization before requesting CLI with Navy?

I might be wrong but based on the information provided, I don't think they will approve the CLI.

12/27/16 - Eq683 TU666 Ex681 04/05/17 Eq742 TU763 Ex757
Message 2 of 15
Anonymous
Not applicable

Re: Utilization before requesting CLI with Navy?

I would not only get the one card below 30% I would get your Total Utilization below 30%

Everyone's situation is different but if all your cards are at 29% Utilization you are not PIF and probably don't need more credit. I know that sucks to hear and maybe I don't know the whole story, but this is how we all got into trouble in the past. It starts out slow-and before you know it you are screwed.
I'd hate to see your creditors get spooked by your overall Utilization and history and close your accounts or CLD you. It does happen. (Especially if you have Barclays, Synch, or Comenity cards)

Like I said I don't know your situation and maybe I don't understand-if that's the case I am sorry.
TryInf to help.

In regards to your question-I believe they are SP CLI's so you can always try-and if denied, pay down and try again.
Message 3 of 15
nmjacobs
Contributor

Re: Utilization before requesting CLI with Navy?

Yes, I know for optimal scoring I need all reporting 0 except one (leave $2). The other cards all have small limits $300-500 so we are not talking about huge amounts owed at 29%. The Navy card is by far my largest CL. I'm just trying to get it so I can get that increase. I don't plan to use the card. We are planning to buy a house in a few months and I literally need ONE more point for my middle mortgage score.
Message 4 of 15
Anonymous
Not applicable

Re: Utilization before requesting CLI with Navy?

Paying down a maxed out card will have a much greater boost to your score than a CLI ever will.  Smiley Happy

 

Oz

Message 5 of 15
nmjacobs
Contributor

Re: Utilization before requesting CLI with Navy?

I disagree that paying down a card by $2100 would have a greater effect than increasing that credit line to $25,000. That will have a much better effect on my overall utilization. The score model isn't looking at how you get to the utilization. Explain how I am wrong?
Message 6 of 15
nmjacobs
Contributor

Re: Utilization before requesting CLI with Navy?

We are talking about 2% (my way) vs 14% total utilization.
Message 7 of 15
CreditInspired
Community Leader
Super Contributor

Re: Utilization before requesting CLI with Navy?

OP,

 

For me, NFCU did a HP on my Signature for a CLI when I was at my 4th statement and 0% utilization (the CLI was $1.5K). When I called them before I hit the CLI button inquring about HP/SP, I was told that they always do HP.

 

In the beginning on my Platinum and before I starting reading the myFICO forum, I was more than 78% utiliaztion and had never asked for a CLI. However, I noticed when I made huge payments (10-15x the minimum), NFCU always gave me surprise, automatic increases of $1K increase without asking. I have come to the conclusion that NFCU does not like high utilization.

 

You stated that "The other cards all have small limits so we are not talking about huge amounts owed at 29%." For scoring, it really doesn't matter if the limit is $500, $3K or even $20K, 29% is still the same ratio of the CL balance.

 

I have a couple of concerns, especially since you plan to purchase a house in a few months. IMHO, you should not apply for any more credit and as Djgrolyos suggested, get your total utilization down under 30%. Lenders, as well as CC companies, want to see that borrowers can handle the credit they have been given. For me, I would be scared if I only had a CC for 3 months/statements and I almost maxed it out. Again, as Djgrolyos suggested, the creditors could get spooked about this and could consider it risky behavior. If your plan is to purchase a house, the last thing you want is an AA showing on your credit report and high utilization. And as Ozix said, paying down a maxed card will boost your score!!!!! I've been there, it will.

 

MyFICOers have been a blessing to me and I bet if you follow the suggestions they provide, you will be as happy as I am to have reduced my utilization.

 

 

 

 


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 8 of 15
Anonymous
Not applicable

Re: Utilization before requesting CLI with Navy?


@nmjacobs wrote:
I disagree that paying down a card by $2100 would have a greater effect than increasing that credit line to $25,000. That will have a much better effect on my overall utilization. The score model isn't looking at how you get to the utilization. Explain how I am wrong?

The FICO scoring system does not just look at overall utilization but also individual card utilization.  If you have a maxed out card it damages your score quite a bit.  To answer your original question you need to lower your  NFCU card utilization quite a bit and look to lower your other cards balances as well.  To achieve the best possible score for your mortgage, paying down/off those cards will help you far more than getting a CLI to you NFCU card.  Very doubtful that Navy will give you much at all, if any, CLI now let alone bouncing it to $25K in your current situation.

Message 9 of 15
CreditInspired
Community Leader
Super Contributor

Re: Utilization before requesting CLI with Navy?


@nmjacobs wrote:
I disagree that paying down a card by $2100 would have a greater effect than increasing that credit line to $25,000. That will have a much better effect on my overall utilization. The score model isn't looking at how you get to the utilization. Explain how I am wrong?

True and False.

 

True if you are able to obtain a $25K increase. However, because your card is already almost maxed out, 9 times out of 10, you probably won't get that kind of increase. Of course, this scenario is not good news.

 

False: If you don't obtain a $25K increase. That's why it's VIP to pay down the card's balance.

 

We just want to help you avoid an unnecessary HP.

 


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 10 of 15
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