I opened a personal line of credit with the bank, but didn't realize what it was. I was thinking to close it, however, I was told that it would make my credit report look bad if I did that. Is it good to have a personal line of credit, if you are not thinking to use it anytime soon. I'm not to sure how that works. Thanks for any advise.
2007-10-02 15:33:11 · 5 answers · asked by pawdog530 3 in Business & Finance ➔ Personal Finance
I believe that any open line of credit, whether it is bank credit or cash available credit on a credit card, even if unused, adversely affects your credit score, insomuch as credit bureaus look at it as if you already owed that money since you could potentially access it at any given time. The best thing to do, if you have no intention of using the line of credit is to close it, and have it reported as closed at customer's request. No, that does not detract from your credit rating; to the contrary, it displays fiscal responsibility.
2007-10-02 15:41:59 · answer #1 · answered by claudiacake 7 · 1⤊ 0⤋
if you close it it wont look that bad. i say its cool to keep it because you never know when you may need it. its not a bad thing. the more u use it, and then pay it back the more they will report to the credit bureau your timely payments and your credit rating will keep going up. so use it to pay for dumb stuff like ice cream and cat food and then pay it off and boost your rating.
2007-10-02 22:41:33 · answer #2 · answered by GG 7 · 1⤊ 0⤋
It is nice to have,if you don't use it there usually isn't a fee, and the interest is usually better than a credit card if you have an emegency, because cash advances are high interest on credit cards.
2007-10-02 22:38:22 · answer #3 · answered by Tommy H 5 · 0⤊ 0⤋
yep, go ahead and take out a loan, put that
money in a savings account, and take the money
out of your savings account each month for the
loan payment. DON'T spend this money, after you
pay off the loan, take out a bigger loan put it in your
savings account, don't spend it. but pay the payments
each month from your savings account, each time you
get a new loan it will be a bigger one than before.
2007-10-02 22:41:02 · answer #4 · answered by ebookrom 2 · 0⤊ 0⤋
I dont think it will hurt ur credit that bad.
2007-10-02 22:37:27 · answer #5 · answered by Anonymous · 0⤊ 1⤋