Does CLI increase FICO?

[bichonmom]

I recently got a cli from $500 to $2500, but it isn't reporting yet. My balance reporting is zero. All CCs reporting @ zero, except for one CC w/ $500 bal on $2k CL (I know it's over 9% -- this is my iPad w/0% financing).

My total CL was around $8k and will be around $10k w/CLI -- once it reports.

I'm wondering if the CLI would help my FICO, since it will help w/overall util. Or, since it's such a small amount, might not make any difference.

I'm just debating whether it's worth waiting to app for a Zync, because of the increase in FICO. OR if it won't make much difference, and it's not worth waiting another couple of weeks for it to report.

Thanks!

[kjm79]

I think I'd wait to app.  That new CLI will bring you under 9% right?  Wait and see what that will do to your score, and let us know of course!!! 

ETA:  I guess I should do the math first.  Your overall util is already under 9%.  So maybe you won't see much of an increase since the other card will still be at 25% util.  Hmmmm..  Idk.  I think I'd personally still wait to app. 

[bichonmom]

No, that's a different CC.

My overall util right now is 6%, but 25% on the iPad CC. That is the ONLY CC with a balance, but a different CC than i got the CLI.

After the CLI reports, my overall util will drop to 5% (instead of 6%).

My total CL (for all CCs) will increase by only $2k, but that's 25%, since my total CL is so low.

The diff between 5 and 6% util isn't a big deal. But since my total CL avail will increase by 25%, I'm wondering if that will boost my FICO.

Thanks!

[vanillabean]

---

@bichonmom wrote:

The diff between 5 and 6% util isn't a big deal. But since my total CL avail will increase by 25%, I'm wondering if that will boost my FICO.

---

Sorry, no. While FICO scores based on util and balances, credit limit amounts do not directly come into play.

[bichonmom]

Thanks!

[RobertEG]

CL does directly come into play.

It is the denominator in the % util calculation.  THE denominator in individ card util, and part of the denom in overall % util.

It is particularly important in scoring of the indiv card that gets the CLI, as the CLI impacts that card the most.  In the scoring of individ card % util, it has significant benefit.

It also benefits overall % util, but is diluted a bit

[bichonmom]

Thanks, Robert. Since the balance on the CC that got the CLI is zero, my guess is it won't help much. My overall util will only go from 6 to 5%, and it won't affect my util on the CC w/a balance. 

But, I think I'm going to wait a week or so and see if my score changes after the updates before apping. I'd really like to app now, but if I do gain points from the CLI, it could make the difference between approval and denial.

[llecs]

OP, going from 6% to under 6% in overall util likely won't change your FICO. Congrats on the CLI, though. Makes managing util a little easier.

[AndySoCal]

Yes to the exent if any that it helps your credit utilzation.