Increasing credit line affect on FICO

[Anonymous]

Do CLI affect your FICO if you are already reporting AZEO and less than 9% utilization? 

Is the amount of available credit (again with already having AZEO and below 9% utilization) help your FICO mortgage scores?

If the answer to both of these questions is no, then why do people continue to ask for CLI when they have low/ideal utilization? Seems like opening yourself up to risk with no reward. I'm curious because I'm trying to set myself up for having excellent credit when I apply for a mortgage in the next 3-5 years. 

[HeavenOhio]

There's no effect on one's FICO scores if utilization is already ideal.

People increase limits for a lot of reasons. Some do it simply because they can (which isn't necessarily a good reason). Many do it to offer themselves increased flexibility to absorb larger charges. Also, there's plenty of anecdotal evidence that higher limits on current cards will encourage a higher starting limit on new cards.

[simplynoir]

The answer is indeed no to both your questions. And as to why some people like smaller limts and others push it to see how high they can go this recent/ongoing thread might interest you.

http://ficoforums.myfico.com/t5/Credit-Cards/Am-I-the-only-one-here-who-prefers-lower-limits/td-p/51...

[Anonymous]

Thank you for both of your replies. As someone who is just coming out of a rebuilding period I think I went a little too crazy on applying for new cards and got offered multiple high (high for me) CL. I want to optimize my score for 3-5 years down the road without opening myself up to the kind of credit card debit I've seen my parents struggle with all of my life. I think I will hold off on applying for CLI, especially the AMEX 3x CLI I may be able to get. 

However, I'm thankful I now have a card with a 5k limit so I can charge my entire housing in Rome for the summer with the travel insurance the card provides. Otherwise I'd have to do it on my debt with no insurence. 

[expatCanuck]

I'll add that, in my experience, the converse is not true -- a CL decrease cost me 2 EX points about 2 weeks ago, even tho' the CL-reduced card util was 0%, and aggregate util remained under 1%.  And, fwiw, the decrease was at my request.

[909]

expat, do you care to share why you asked for a CLD? That might add insight for the OP (and resolve my curiosity on why one might ask for a lower CL).

Thanks.

[expatCanuck]

The CSP came with a limit higher than I was comfortable with, so I requested a nominal decrease.

Even so, I still have more than twice the aggregate CL than I did a year ago (and, truth be told, that was more than enough to get me into trouble when I didn't exercise self-control).

Requesting a decrease was, in part, a demonstration (to myself) of self-control. (The CSP was not acquired on a whim, but to facilitate travel.  The BCE, on the other hand, was a capricious exercise that I now regret.)