Do you get a credit file hit when accepting a card credit limit increase invite?

Hi,

Just wondering if you get a credit file hit when accepting a card credit limit increase invite from the bank?

Thanks

 

Yep.

 

How abt decrease @Terry_w

 

Yes to an increase, pretty sure no to a decrease. I've seen clients cut credit cards out to get over the line, and the lender doesn't know about it (i.e. not on the credit file, needs to be documented in notes/etc).

 

I wouldn't think so on a decrease. but some of these credit card companies do a periodic credit check - without any further permission from you. I had one client whose card company was checking her credit file monthly almost.

 

Interesting.
What if you increase it yourself without an invite?

 

Offhand I can recall that Citibank and various AMEX providers do this.

Fortunately it is categorised differently from other data on your credit report, the banks systems tend to ignore it as long as the card has been disclosed in the application.

 

hmm interesting. I subscribe to Veda and we have not had any of our CC increases appear on the report.
Does this means that the subscription report is NOT showing all the activity?

 

Hmm interesting @moyjos, perhaps some don't do checks on income/affordability on the credit limit increase offers. Veda's usually got the finger on the pulse whenever someones looking at your file.

 

+1 for this. None of my credit card increase invites ever showed up on my file. Westpac and NAB. Could be different with other banks. Veda have only recently started changing the web interface to reflect new credit history changes like showing credit limits etc

The routine check is called soft-hit, IIRC, which apparently is also used by some banks before their computer issues an automatic invite to credit increase. Don't quote me on that though.

 

@JohnPropChat I don't think an invite would ever show up more if you accepted it.
If a credit hit appeared for an invite that you had no control over there would be mutiny!

 

I'm not sure if it does. I remember upping a CBA card a while back (upon invite) and it didn't appear on the VEDA. I remember them saying it wouldn't.

Perhaps it's case by case depending on the lender.

Cheers

Jamie

 

Any increase will (or should) incur a credit hit as you're applying for more consumer credit. A decrease won't. When lender invite you make an increase, you should probably probably switch the word "invite" with the words, "apply".