I am have been a USBank CC customer for almost a year. I received an offer from them in the mail offering me a couple of hundred dollars to open a checking account with them. I have been planning on leaving the "Stage Coach" bank anyway. I opened a checking account and was offered what they call a reserve LOC which I can tap into whenever I wish. The sales bait used was it provided overdraft protection on the new checking account. I don't bounce checks. I really have no need for these funds, but since there were no pulls of any kind involved I took him up on this offer. BTW, there were no pulls for the checking account either, not even Chexsystems. Maybe because I was a known entity and opened the account with a check from my old bank.
After researching here myFICO it is generally believed that this type of LOC is reported to the CRAs and treated, in most cases, the same as revolver, just like a CC, so I guess I'll take a little hit on my AAoA which may be offset by lowering my utilization a few points.
My major question is, if I am correct about the above and I never use this LOC, will it be reported to the CRAs monthly same as a credit card showing zero utilization? If anybody has had experience with USBank with these Reserve LOC's, could you tell me how they are reported and the frequency. Also how the CRA handles it on your CR.
Thanks for any input.
