PLOC Mixed Credit worth it?

SecretAzure · ‎03-23-2015

Hello, my only form of credit currently is from credit cards. Current scores are all around 750 (all 3, FICO). I expect near 800 by October. I was wondering how much having a mix of credit will increase my credit to creditors. I would get a PLOC and basically use it to pay itself off (plus interest) and seeing how that affects my scores.

Do you think opening a PLOC when I don't need one is a good idea? Suggestions? Ideas?

Side note: I will probably apply for a penfed card since they allow me to get a PLOC off of the same hard pull(s) but that won't be until 2016.

Thank you!

P.S. Somebody watch out for that Nixon guy...

P.P.S. I fully expect the baller chick to be here in less than 10 hours

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SecretAzure · ‎03-24-2015

Bumpitty, bump bump, bumpitty, bump bump bumping all the way.

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sillykitty1 · ‎03-24-2015

A PLOC will report as revolving, so I'm not sure it will have a significant or any score boosting effect.

If you want a score boost from mix of credit, you need an installment loan. It would be interesting to know if you can get to 800 without an instalment actually.

But is it worth paying interest just to raise your score to 800? Over 760 is really a vanity score, as there is no true benefit to be gained by going higher.

SecretAzure · ‎03-24-2015

@sillykitty1 wrote:
A PLOC will report as revolving, so I'm not sure it will have a significant or any score boosting effect.

If you want a score boost from mix of credit, you need an installment loan. It would be interesting to know if you can get to 800 without an instalment actually.

But is it worth paying interest just to raise your score to 800? Over 760 is really a vanity score, as there is no true benefit to be gained by going higher.

You can get to 800 (without an installment) but I believe those who run your credit might see a lack of mixed credit. I wonder if Penfed offers installment loans, I don't even know what that is or how it's different. I have a full-time job and live with my parents. A few dollars of interest here-or-there won't kill me. When I decide to move out though, having a score above 800 makes the banks feel safer even though I make not-so-much money annually.

"Show your thanks with action! Hit the "Kudos" button (the stripe with the star) for every post you find helpful to show your appreciation to the community of great individuals who help you on these forums" -Me

Active Cards: Chevron Texaco, Amex BCE, Barclays Ring, Chase Freedom, Chase Freedom Unlimited, Best Buy Visa, Marvel MC

Must garden until 2/1/2022 to hit my goal AAOA.

Anonymous · ‎03-24-2015

@SecretAzure wrote:
@sillykitty1 wrote:
A PLOC will report as revolving, so I'm not sure it will have a significant or any score boosting effect.

If you want a score boost from mix of credit, you need an installment loan. It would be interesting to know if you can get to 800 without an instalment actually.

But is it worth paying interest just to raise your score to 800? Over 760 is really a vanity score, as there is no true benefit to be gained by going higher.
You can get to 800 (without an installment) but I believe those who run your credit might see a lack of mixed credit. I wonder if Penfed offers installment loans, I don't even know what that is or how it's different. I have a full-time job and live with my parents. A few dollars of interest here-or-there won't kill me. When I decide to move out though, having a score above 800 makes the banks feel safer even though I make not-so-much money annually.

An installment loan is one where you have fixed payments over a set period of time. Revolving credit is where there is no set monthly payment and varies depending upon your use. A PLOC would fall into the revolving credit because you can take money out as you need it and the repayment would vary.

The two most common types of installment loans are auto and personal loans. Mortgages are also installment loans but usually classified differently than the other two. PenFed does offer both auto and personal loans.

SecretAzure · ‎03-24-2015

@Anonymous wrote:
@SecretAzure wrote:
@sillykitty1 wrote:
A PLOC will report as revolving, so I'm not sure it will have a significant or any score boosting effect.

If you want a score boost from mix of credit, you need an installment loan. It would be interesting to know if you can get to 800 without an instalment actually.

But is it worth paying interest just to raise your score to 800? Over 760 is really a vanity score, as there is no true benefit to be gained by going higher.
You can get to 800 (without an installment) but I believe those who run your credit might see a lack of mixed credit. I wonder if Penfed offers installment loans, I don't even know what that is or how it's different. I have a full-time job and live with my parents. A few dollars of interest here-or-there won't kill me. When I decide to move out though, having a score above 800 makes the banks feel safer even though I make not-so-much money annually.
An installment loan is one where you have fixed payments over a set period of time. Revolving credit is where there is no set monthly payment and varies depending upon your use. A PLOC would fall into the revolving credit because you can take money out as you need it and the repayment would vary.

The two most common types of installment loans are auto and personal loans. Mortgages are also installment loans but usually classified differently than the other two. PenFed does offer both auto and personal loans.

I was waiting for you to show yourself. That's some Irish luck. It's good to hear they offer this. Two birds with one stone is why i'm interested in Penfed at all. So...for example I could set up an installment loan and still pay it off ahead of time, correct? Like those who do double payments on their auto loans?

Thanks for your help!

"Show your thanks with action! Hit the "Kudos" button (the stripe with the star) for every post you find helpful to show your appreciation to the community of great individuals who help you on these forums" -Me

Active Cards: Chevron Texaco, Amex BCE, Barclays Ring, Chase Freedom, Chase Freedom Unlimited, Best Buy Visa, Marvel MC

Must garden until 2/1/2022 to hit my goal AAOA.

Anonymous · ‎03-24-2015

@SecretAzure wrote:
@Anonymous wrote:
@SecretAzure wrote:
@sillykitty1 wrote:
A PLOC will report as revolving, so I'm not sure it will have a significant or any score boosting effect.

If you want a score boost from mix of credit, you need an installment loan. It would be interesting to know if you can get to 800 without an instalment actually.

But is it worth paying interest just to raise your score to 800? Over 760 is really a vanity score, as there is no true benefit to be gained by going higher.
You can get to 800 (without an installment) but I believe those who run your credit might see a lack of mixed credit. I wonder if Penfed offers installment loans, I don't even know what that is or how it's different. I have a full-time job and live with my parents. A few dollars of interest here-or-there won't kill me. When I decide to move out though, having a score above 800 makes the banks feel safer even though I make not-so-much money annually.
An installment loan is one where you have fixed payments over a set period of time. Revolving credit is where there is no set monthly payment and varies depending upon your use. A PLOC would fall into the revolving credit because you can take money out as you need it and the repayment would vary.

The two most common types of installment loans are auto and personal loans. Mortgages are also installment loans but usually classified differently than the other two. PenFed does offer both auto and personal loans.
I was waiting for you to show yourself. That's some Irish luck. It's good to hear they offer this. Two birds with one stone is why i'm interested in Penfed at all. So...for example I could set up an installment loan and still pay it off ahead of time, correct? Like those who do double payments on their auto loans?

Thanks for your help!

Correct, the vast majority of installment loans can be paid back early.

SecretAzure · ‎03-24-2015

@Anonymous wrote:
@SecretAzure wrote:
@Anonymous wrote:
@SecretAzure wrote:
@sillykitty1 wrote:
A PLOC will report as revolving, so I'm not sure it will have a significant or any score boosting effect.

If you want a score boost from mix of credit, you need an installment loan. It would be interesting to know if you can get to 800 without an instalment actually.

But is it worth paying interest just to raise your score to 800? Over 760 is really a vanity score, as there is no true benefit to be gained by going higher.
You can get to 800 (without an installment) but I believe those who run your credit might see a lack of mixed credit. I wonder if Penfed offers installment loans, I don't even know what that is or how it's different. I have a full-time job and live with my parents. A few dollars of interest here-or-there won't kill me. When I decide to move out though, having a score above 800 makes the banks feel safer even though I make not-so-much money annually.
An installment loan is one where you have fixed payments over a set period of time. Revolving credit is where there is no set monthly payment and varies depending upon your use. A PLOC would fall into the revolving credit because you can take money out as you need it and the repayment would vary.

The two most common types of installment loans are auto and personal loans. Mortgages are also installment loans but usually classified differently than the other two. PenFed does offer both auto and personal loans.
I was waiting for you to show yourself. That's some Irish luck. It's good to hear they offer this. Two birds with one stone is why i'm interested in Penfed at all. So...for example I could set up an installment loan and still pay it off ahead of time, correct? Like those who do double payments on their auto loans?

Thanks for your help!
Correct, the vast majority of installment loans can be paid back early.

Thank you for sharing your wisdom with me. I pretty much am booked now with all my credit decisions for the next 2 years or so.

"Show your thanks with action! Hit the "Kudos" button (the stripe with the star) for every post you find helpful to show your appreciation to the community of great individuals who help you on these forums" -Me

Active Cards: Chevron Texaco, Amex BCE, Barclays Ring, Chase Freedom, Chase Freedom Unlimited, Best Buy Visa, Marvel MC

Must garden until 2/1/2022 to hit my goal AAOA.

Anonymous · ‎03-24-2015

You're very welcome and good luck

JSS3 · ‎03-24-2015

I was told by someone on here(can't recall a name at the moment) that one could take out PLOC and it report as an installment loan. He seemed to know what he was talking about. Maybe there is a way to do so.

EDIT:

@NRB525 wrote:
@JSS3 wrote:
@joltdude

You're killin me here. Lol

I have neither a mortgage(ex hubby bought house) nor installment loan. Only 14 CCs and a "paid as agreed" closed student loan. Will not be getting either in the future.

I guess a second HP for a decent limit is what it shall be. I REALLY want to get in with BOA because they give high limits(after hp) and frequent BT checks(I'm told).
You can get a PLOC from a local CU, does not have to be large. Mine has no cash advance fee, so you just pull out some cash, park it in savings, and then it shows as Installment Loan. Even just $500 draw, pay it down, draw to $500 rinse and repeat.

One of my BofA CC just got an auto CLI from $12,700 to $15,700.
Both BofA cards are sending me monthly 0% 18 month BT offers, but each is already using 0% 18 month BT offers.