Why would my score decrease with higher credit lim... - Page 2 - myFICO® Forums

Beefy1212 · ‎09-16-2022

@Rith wrote:
Hello,
I moved here from Europe and am just getting used to Fico scores. I opened 2 credit cards last year. Length of credit history is 1 year and 2 months. I was trying the Fico simulator to see what I can do to increase my score (btw, would love to know how, if you have any advice!).
When I tried to simulate raising my credit limit on existing cards by any amount, the simulator predicted a drop of 10-15 points in Fico Scores!
Why would that happen? I thought that was a good thing! I'm a little scared now, because my cards randomly increase my limit every once in a while, and I'm trying to raise my scores for a mortgage!

Overview: 1.2 year length of history, two credit cards only, no late payments ever, not yet letting one card go to statement, but planning to start soon. Current scores: Eq: 736 TU: 743 Exp: 721

I would highly appreciate any advice! Thank you!

The simulator assumes those credit limit increases come with hard inquries, this is not common on cards anymore. The simulated score drop is from calculated hard inquiries.

FireMedic1 · ‎09-16-2022

@Beefy1212 wrote:
@Rith wrote:
Hello,
I moved here from Europe and am just getting used to Fico scores. I opened 2 credit cards last year. Length of credit history is 1 year and 2 months. I was trying the Fico simulator to see what I can do to increase my score (btw, would love to know how, if you have any advice!).
When I tried to simulate raising my credit limit on existing cards by any amount, the simulator predicted a drop of 10-15 points in Fico Scores!
Why would that happen? I thought that was a good thing! I'm a little scared now, because my cards randomly increase my limit every once in a while, and I'm trying to raise my scores for a mortgage!

Overview: 1.2 year length of history, two credit cards only, no late payments ever, not yet letting one card go to statement, but planning to start soon. Current scores: Eq: 736 TU: 743 Exp: 721

I would highly appreciate any advice! Thank you!

The simulator assumes those credit limit increases come with hard inquries, this is not common on cards anymore. The simulated score drop is from calculated hard inquiries.

@Beefy1212If there is no HP. And its a SP CLI. No harm. Points arent taken away for estimating there was a HP. And we all know simulators arent reliable.

@RithAfter re-reading your repsonce. Having all cards report no balance. Your getting the all zero penalty. One card (MC/Visa/Disco) needs to report a balance of <6% for best scoring. Once you have 3 revolvers. It will help even more. FICO likes <50% of the total cards reporting a balance.

BK Free Aug25

Rith · ‎09-16-2022

@Beefy1212 and @FireMedic1 Thank you so much! It's difficult to figure this system out, so your responses are so helpful.

Beefy1212 · ‎09-16-2022

@FireMedic1 wrote:
@Beefy1212 wrote:
@Rith wrote:
Hello,
I moved here from Europe and am just getting used to Fico scores. I opened 2 credit cards last year. Length of credit history is 1 year and 2 months. I was trying the Fico simulator to see what I can do to increase my score (btw, would love to know how, if you have any advice!).
When I tried to simulate raising my credit limit on existing cards by any amount, the simulator predicted a drop of 10-15 points in Fico Scores!
Why would that happen? I thought that was a good thing! I'm a little scared now, because my cards randomly increase my limit every once in a while, and I'm trying to raise my scores for a mortgage!

Overview: 1.2 year length of history, two credit cards only, no late payments ever, not yet letting one card go to statement, but planning to start soon. Current scores: Eq: 736 TU: 743 Exp: 721

I would highly appreciate any advice! Thank you!

The simulator assumes those credit limit increases come with hard inquries, this is not common on cards anymore. The simulated score drop is from calculated hard inquiries.
@Beefy1212If there is no HP. And its a SP CLI. No harm. Points arent taken away for estimating there was a HP. And we all know simulators arent reliable.
@RithAfter re-reading your repsonce. Having all cards report no balance. Your getting the all zero penalty. One card (MC/Visa/Disco) needs to report a balance of <6% for best scoring. Once you have 3 revolvers. It will help even more. FICO likes <50% of the total cards reporting a balance.

I am aware the simulators are iffy, I was answering the question as to why the simulator in that specific case would lower the score.

As for utilization it is 4.49% not <6% for highest score anything 4.5% and above carries some sort of penalty and all scoring thresholds are technically .51% lower than stated since fico rounds to the nearest whole number.

OmarGB9 · ‎09-25-2022

@Beefy1212 wrote:
@FireMedic1 wrote:
@Beefy1212 wrote:
@Rith wrote:
Hello,
I moved here from Europe and am just getting used to Fico scores. I opened 2 credit cards last year. Length of credit history is 1 year and 2 months. I was trying the Fico simulator to see what I can do to increase my score (btw, would love to know how, if you have any advice!).
When I tried to simulate raising my credit limit on existing cards by any amount, the simulator predicted a drop of 10-15 points in Fico Scores!
Why would that happen? I thought that was a good thing! I'm a little scared now, because my cards randomly increase my limit every once in a while, and I'm trying to raise my scores for a mortgage!

Overview: 1.2 year length of history, two credit cards only, no late payments ever, not yet letting one card go to statement, but planning to start soon. Current scores: Eq: 736 TU: 743 Exp: 721

I would highly appreciate any advice! Thank you!

The simulator assumes those credit limit increases come with hard inquries, this is not common on cards anymore. The simulated score drop is from calculated hard inquiries.
@Beefy1212If there is no HP. And its a SP CLI. No harm. Points arent taken away for estimating there was a HP. And we all know simulators arent reliable.
@RithAfter re-reading your repsonce. Having all cards report no balance. Your getting the all zero penalty. One card (MC/Visa/Disco) needs to report a balance of <6% for best scoring. Once you have 3 revolvers. It will help even more. FICO likes <50% of the total cards reporting a balance.
I am aware the simulators are iffy, I was answering the question as to why the simulator in that specific case would lower the score.

As for utilization it is 4.49% not <6% for highest score anything 4.5% and above carries some sort of penalty and all scoring thresholds are technically .51% lower than stated since fico rounds to the nearest whole number.

I've never heard of 4.49% being a threshold. I've only ever seen 8.9%, 28.9%, 48.9%, 68.9%, and 88.9% for revolving accounts.

Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:

Current FICO 8 scores:

FishingGuy · ‎10-01-2022

I agree with all the above advice, add a third card, go slow, use and pay them off, strategically ask for soft pull increases if the cards you have offer them...... and acquire a loan. but, if you don't need a loan.... don't go out and borrow money that you don't need. However look into a "self-lender loan" from one of the credit unions or financial institutions that offer them.

It is really like a holiday club where you make a deposit every month ( think of it as savings ) for 12 months or so. At the end of the period, you get those funds returned..... less some fees. It however reports as a loan for a fixed period and payment amount as well as the total end amount, and reports monthly as it is being paid off "as a loan".

I would set one of them up for the highest amount that you can comfortably & easily afford to save. It is definitely worth the small fees you pay and will help build your credit substantially for the long term.