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KarmaVed

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Does Credit Line increase result in Credit inquiry?
I was hoping to request a Credit Line increase with one of my shopping merchants. I am not sure if this would result in a Credit Inquiry of any kind (soft or hard). When asked the merchant, they said the credit check would be internal, and that they don't believe this will impact the credit score. However they couldn't gurantee this. Could you kindly advise? I don't want to any form of credit inquiries resulting in lowering or impeding my present Credit score that is currently demonstrating a steady increase.

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If you request the Credit Line Increase then there is a very high chance it will result in a Hard inquire.

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It totally depends on the company, and since you didn't mention who that is, we can only generalize. In my own experience, Capital One does *NOT* do a hard inquiry as a result of requesting a credit line increase, while both Bank of America and Discover *DO* pull a hard inquiry. However--and, again, in my experience only--the companies that do a hard pull tell you that up front, i.e., you have to give the 'okay' to them before they continue on and actually do the hard inquiry. I'm referring to doing this online. Again, since you didn't mention who the creditor is, I have no way of knowing what their specific procedures are. Since the first person you contacted there couldn't give you a definite answer, I'd try again--ask if there's someone who can give you an absolute answer.

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I agree with Howie in some respects, but you also need to consider the overall picture. When you request a credit line increase from your financial institution, the lender will most likely perform a credit check. This initiates a hard credit inquiry and shaves a few points off your credit score -- a small, short-term difference. If approved, the increase appears on your credit report and contributes to a higher open credit line. This lowers your utilization rate, and your score should go up as a result, which will quickly diminish the effect of the hard inquiry. If your request is not granted, the inquiry remains as a negative mark on your report.

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