How damaging is a CLI inquiry?

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spy23714
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How damaging is a CLI inquiry?

Postby spy23714 » Mon Feb 16, 2015 9:04 pm

I'm wanting to request a CLI on my Bank Americard because my research leads me to believe they don't auto increase. From what I've read, Bank of America does a hard pull on TransUnion for CLIs. I currently have one inquiry that is due to fall off in July. I'm just a bit reluctant to apply for the increase because I'm not sure of my odds to be approved and I really don't want to waste an inquiry. Thoughts?

All help is appreciated. Thanks in advance!


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obxfisherman
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Postby obxfisherman » Mon Feb 16, 2015 9:21 pm

My opinion, if you have only 1 inquiry, you should go ahead and apply, since the one will drop off in july, with this one taking its place it will be like nothing has happened. Has your income or anything else changed since your initial credit line? What are some of your cards like limit wise? Current score? From your prospective do you think you'll get a big jump in CL?
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Postby thom02099 » Mon Feb 16, 2015 9:42 pm

Depends on what your total credit picture looks like. Hard to make any definitive predications without knowing more about your credit situation. Conventional wisdom says that 1-2 inquiries are not going to be overly "damaging", particularly if one is soon to fall off. Conventional wisdom also usually states that an inquiry may result in a 5-10 point drop in scores (depending on where you are, could be more or less), but you'll make it up by the higher limit if granted, and the benefit to utilization. And really, scores only matter if you're applying for new credit, so a minor drop is no big deal. But again, it depends on your unique situation.
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spy23714
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Postby spy23714 » Mon Feb 16, 2015 9:48 pm

My FICO is 685, which I don't really understand. I have one late payment that is 31 months old, but otherwise, my AAoA is around 4 years old. All other payments are made on time. I don't have any revolving payments as I recently paid off my truck. I guess that kind of hurts my score, but it also allows me a little more free cash each month. My utilization is a bit high, which is part of the reason I'd like the increase. I have 5 credit cards at the moment ranging from limits from $450 to $2,750. The card in question has a limit of $1,000 and I'd like to request it up to around $5,000 or so.

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Postby CarefulBuilder14 » Mon Feb 16, 2015 9:52 pm

Issuers don't really like to raise limits just so someone's utilization can go down. It's the old saying - banks only like to lend to people who don't need the money.

What exactly is your utilization - on the BofA and across all cards?

Have you been carrying a balance, or just have had a lot of expenses this month?

Revolving payments are ones like credit cards. Trucks are usually installment loans.
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Postby ingramjuan » Mon Feb 16, 2015 9:55 pm

I don't think I can add any additional comments based on the pervious comments within this thread. However speaking from experience it would be my suggestion to drop your utilization below 20% since you still have one late payment showing in your CR.
I also would suggest waiting until August to see where you are at by pulling your CR and possible your FICO scores.
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spy23714
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Postby spy23714 » Mon Feb 16, 2015 9:56 pm

3 of the cards have a zero balance, 1 has about 35% utilization, then my BofA card is for daily purchases, but is usually down around 30% when the statement cuts. I did, however, have to finance a whole new heat and air system for my house, which I thought was going to be an installment loan until a credit card arrived in the mail for it. That card is currently at 73% utilization, which is what makes my utilization so high.

In regards to increasing the limit just to bring the utilization down, of course that isn't the reason I'd give BofA in my request. I'm planning a vacation that I'd like to use the BofA card for (it's my only rewards card at the moment). The decreased utilization is just a bi-product of the CLI.

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Postby thom02099 » Mon Feb 16, 2015 10:04 pm

spy23714 wrote:3 of the cards have a zero balance, 1 has about 35% utilization, then my BofA card is for daily purchases, but is usually down around 30% when the statement cuts. I did, however,[color="red"] have to finance a whole new heat and air system for my house, which I thought was going to be an installment loan until a credit card arrived in the mail for it. That card is currently at 73% utilization, which is what makes my utilization so high.
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In regards to increasing the limit just to bring the utilization down, of course that isn't the reason I'd give BofA in my request. I'm planning a vacation that I'd like to use the BofA card for (it's my only rewards card at the moment). The decreased utilization is just a bi-product of the CLI.


Sidebar: What changed, from it being an installment loan application, to a credit card? Is this at zero percent for XX number of months? If not, and it's at standard credit card APR, you may want to look into getting a personal loan, preferably from a credit union, and pay off the credit card loan. A personal loan will likely be lower APR than your current loan.
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spy23714
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Postby spy23714 » Mon Feb 16, 2015 10:08 pm

At the time, naively, I didn't pay much attention to the application. We were heading into a Texas summer with no air conditioner and I'd recently been denied by two other lenders. My belief is that it was a credit card application all along, I just misread what I'd filled out. The personal loan to replace it is not a bad idea. An installment loan would look better than a credit card with 73% utilization, correct?

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Postby popamode72 » Tue Feb 17, 2015 5:07 am

I think you'll be fine. In a year, it stops affecting your FICO completely and as long as you don't have too many recent inquiries, you'll also be fine there too.
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