PENFED PLOC how to use it?

[glamchick]

I was approved for $500 PLOC from PENFED a couple of months ago.  It has now reported to my CR's.   Am I suppose to use it and PIF every month for it to report  a "0" balance?   Or can I just let it sit there and only use it for emergencies?

[Revelate]

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@glamchick wrote:

I was approved for $500 PLOC from PENFED a couple of months ago.  It has now reported to my CR's.   Am I suppose to use it and PIF every month for it to report  a "0" balance?   Or can I just let it sit there and only use it for emergencies?

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I've just let it sit there for emergencies, got it back in August of last year.  So far that hasn't been a problem, but I don't know how long they're gong to let that 20K line sit out there idle.  PLOC by definition is for big expenses you can't pay for with cash which emergencies fall under, so I assume this reasoning will fly if they ever call me on it.

[RonM21]

I don't see why it would be an issue letting it sit there. I say use it in a way that suits you best until there is a reason for it to be an issue. Revelate's reasoning seems to make sense.

[Marcos8]

In general how are ploc's used? Do you use it to transfer funds to your checking account? Does it have its own checks to use? How are payments made to it once it is used? 

[RobertEG]

It is simply a revolving line of credit treated similar to any credit card.

You have the discretion to use up to the approved credit limit.

They are required under the Fair Credit Billing Act to send monthly statements, once you have a balance, which will set your due date and minimum monthly payment.

Provided it has a lower APR than your credit cards, it will cost less.

However, the $500 credit limit can easily result in high % utils on that individual revolving account, and could result in score impacts.

[youdontkillmoney]

I use mine every 6 months (about $20 a time transferring to my PenFed checking) to show PenFed I am active and using it so they do not close it on me; then I'd transfer it back to the PLOC after a few days paying a few pennings interest.

[Revelate]

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@youdontkillmoney wrote:

I use mine every 6 months (about $20 a time transferring to my PenFed checking) to show PenFed I am active and using it so they do not close it on me; then I'd transfer it back to the PLOC after a few days paying a few pennings interest.

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How long have you had it?

[glamchick]

For about 2 months.   I just wanetd to make sure I dont' loose if for not using it.   I know if you do that with a credit card you can actually loose points.