Credit Line increases

[Anonymous]

All great advice above!

[Anonymous]

@Taurus22 

Quick quest: How do you know if your existing credit card account will do a SP or HP when you request a credit line increase?

[rostrow416]

Credit line increases = good

Utilization = bad

You want a good amount of available credit, you just shouldn't be using a much of your available credit.

[Anonymous]

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@Anonymous wrote:

Quick quest: How do you know if your existing credit card account will do a SP or HP when you request a credit line increase?

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You need to know your lender, as it varies from one to the next.  I would suggest starting a thread on here if you have a specific lender in mind (or just search it) and you'll find the answer.  You could always call the lender as well and ask, although CSRs notoriously give bad information.  Most are SP from what I've seen so long as you haven't requested recently, say within the last 6 months.  Some examples of these would be Discover, Amex, Citi, Cap One.  Others like Chase will get you for a HP if you request a CLI.  Some will get you with a HP if you've gone the SP route recently.  For example, if you get a Citi CLI via SP and then ask for another 2-3 months later, they'll then take a HP. 

[Taurus22]

@Anonymous 

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@Anonymous wrote:

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@Anonymous wrote:

Quick quest: How do you know if your existing credit card account will do a SP or HP when you request a credit line increase?

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You need to know your lender, as it varies from one to the next.  I would suggest starting a thread on here if you have a specific lender in mind (or just search it) and you'll find the answer.  You could always call the lender as well and ask, although CSRs notoriously give bad information.  Most are SP from what I've seen so long as you haven't requested recently, say within the last 6 months.  Some examples of these would be Discover, Amex, Citi, Cap One.  Others like Chase will get you for a HP if you request a CLI.  Some will get you with a HP if you've gone the SP route recently.  For example, if you get a Citi CLI via SP and then ask for another 2-3 months later, they'll then take a HP. 

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This is sage advice. It all depends on the lender. Some lenders are known to do strictly HP only, while others like Discover tend to do SP.  It's always best if you call in to a CSR that you specifically ask before you allow them to run anything. If they tell you it will require a HP, then you can always back out and say no thank you. If you are pushing the "love button" (auto-CLI) online, you need to look at the language of the CLI request page. If it has language that suggests a credit pull will be needed, that usually indicates a HP.

[Anonymous]

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@Taurus22 wrote:

@Anonymous 

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@Anonymous wrote:

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@Anonymous wrote:

Quick quest: How do you know if your existing credit card account will do a SP or HP when you request a credit line increase?

---

You need to know your lender, as it varies from one to the next.  I would suggest starting a thread on here if you have a specific lender in mind (or just search it) and you'll find the answer.  You could always call the lender as well and ask, although CSRs notoriously give bad information.  Most are SP from what I've seen so long as you haven't requested recently, say within the last 6 months.  Some examples of these would be Discover, Amex, Citi, Cap One.  Others like Chase will get you for a HP if you request a CLI.  Some will get you with a HP if you've gone the SP route recently.  For example, if you get a Citi CLI via SP and then ask for another 2-3 months later, they'll then take a HP. 

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This is sage advice. It all depends on the lender. Some lenders are known to do strictly HP only, while others like Discover tend to do SP.  It's always best if you call in to a CSR that you specifically ask before you allow them to run anything. If they tell you it will require a HP, then you can always back out and say no thank you. If you are pushing the "love button" (auto-CLI) online, you need to look at the language of the CLI request page. If it has language that suggests a credit pull will be needed, that usually indicates a HP.

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Thanks!

[MakingProgress]

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@Taurus22 wrote:

Credit line increases (referred to here as CLI's) increase your total credit limit across all credit cards. This, in turn, increases your overall utilization %. 

Let's say that was the only card you own... (just for example):

@ $300 CL - your ideal 10% utilization would be only $30 or less, carried to statement

@ $2,000 CL - your ideal 10% utilization would be $200 or less, carried to statement

As far as the mortgage loan, a CLI will have no negative effect. This, because Discover increases occur as SP increases. If it were a HP increase, then that's what you don't want the mortgage loan to see. Actually it will more likely have a positive effect because you have increased your available credit and utilization, which in turn lowers your minimum monthly payment on any balances. This helps your DTI ratio.

As long as there are no HP's (whether new apps or CLI's) then no worries for the mortgage loan. I'm currently going through the same thing.

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How is a CLI going to lower your minimum payment?   To the best of my knowledge minimum payments are a percentage of your balance and have nothing to do withthe Credit Limits. 

[FlaDude]

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@K-in-Boston wrote:

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+1.  That's not even on the radar for "too much available credit."  If you had $400,000 of revolving credit available on a $25,000 income or something that is where it would be more likely to be an issue.

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+2, worst case if the lender thought you had too much available credit, they could ask you to request CLDs on your accounts to bring your total exposure more in line with their preferences.