Thread: How long for credit score to recover after new application?

Hard inquiries stay on your report for 2 years. But they are not a serious problem if you have no other negatives.

Originally Posted by DoingHomework

Hard inquiries stay on your report for 2 years.

And your score could go up within that time for other reasons like CLI, timely payments or credit history.

Originally Posted by commdiver

CLI=credit limit increase, right? I thought that would be a negative since now I have more credit available to me. Am I mistaken?

When your credit limit is increased, your score will generally go up everything else being equal. This is because the increase in credit reduces your utilization rate. For example, if you have a $100 balance on a $1,000 credit limit, then your utilization is 10%. If you double your credit limit to $2,000 then that same $100 is now only 5% utilization. There is an inverse relationship between credit limit and utilization rate. This puts potential creditors at ease because they see that other creditors are willing to lend to you which is why your credit score is likely to increase.

Your balance is reported at the end of your billing cycle or date your statement closed. What you want to do is reduce the balance before the closing date, zeroing your balance will leave the bank with nothing to report.