topic Questions about PLOC (personal line of credit) in Understanding FICO® Scoring

Questions about PLOC (personal line of credit)

Anonymous — Wed, 30 Aug 2017 23:13:56 GMT

Hey fam, so i notice a lot of folks especially with PenFed getting PLOC's of certain amounts. Some big some small. My question is, what is the main purpose of PLOC and how can i benefit from one if i get qualified or pre-qualified? Also how do PLOC's work and how are they given? What are some reasons you all have gotten your and what affects have they had on your scores?

Just trying to learn, i know they say a mixture of your credit is good too.

Re: Questions about PLOC (personal line of credit)

SouthJamaica — Thu, 31 Aug 2017 03:08:14 GMT

@Anonymous wrote:
Hey fam, so i notice a lot of folks especially with PenFed getting PLOC's of certain amounts. Some big some small. My question is, what is the main purpose of PLOC and how can i benefit from one if i get qualified or pre-qualified? Also how do PLOC's work and how are they given? What are some reasons you all have gotten your and what affects have they had on your scores?

Just trying to learn, i know they say a mixture of your credit is good too.

For me it's primary value is a way to pay things that (a) don't accept credit cards, or (b) charge a service charge for credit card payments. But they're very flexible, so there are probably lots of purposes for them.

Some act as overdraft lines of credit, being tied to your checking account. Some don't.

You pay interest from the moment the money is drawn from the line of credit; no grace period like in credit card purchases.

You can just let it sit there; no need to use it or keep it active.

It shows up in scores as a revolving credit account; different bureaus have different terminology, but it shows up as a revolver, having same effect as a credit card.

Re: Questions about PLOC (personal line of credit)

Anonymous — Thu, 31 Aug 2017 03:15:57 GMT

Ok good info, so if I leave it in my account untouched, which means carries no balance, does that do me any good score and utilization wise or? How does it benefit my credit score?

Re: Questions about PLOC (personal line of credit)

SouthJamaica — Thu, 31 Aug 2017 03:48:16 GMT

@Anonymous wrote:
Ok good info, so if I leave it in my account untouched, which means carries no balance, does that do me any good score and utilization wise or? How does it benefit my credit score?

It benefits your score the same way a zero balance credit card does. It enhances utilization. It adds a zero balance account.

Re: Questions about PLOC (personal line of credit)

Anonymous — Thu, 31 Aug 2017 04:38:55 GMT

Makes sense, thanks fam

Re: Questions about PLOC (personal line of credit)

Appleman — Thu, 31 Aug 2017 21:26:21 GMT

It is an easy to give yourself a short term loan when you need it. No cash advance fee and you just pay interest for a long as you need the money.

I know that Unify has 7.75% PLOC available.

Re: Questions about PLOC (personal line of credit)

ljavonna — Tue, 05 Sep 2017 11:59:27 GMT

Which bureau do unify use

Re: Questions about PLOC (personal line of credit)

SouthJamaica — Tue, 05 Sep 2017 12:03:41 GMT

@ljavonna wrote:
Which bureau do unify use

In my case they used Experian.

The score model they pulled appeared to be Auto 2, but some say that it's Classic FICO 2 that Unify pulls.

Re: Questions about PLOC (personal line of credit)

Anonymous — Fri, 01 Jun 2018 13:51:41 GMT

Please clarify from the moment the money is drawn. Do you mean that
A. It will start intrest roght after so if im at 8% interest would that mean at the end of everyday more interest is added on
B do you mean itll be like a credit card end of every month all the interest hits?
This might be a better way to ask how is it different from a ccs intrest

If i pull out 500$ from a cc and 500 from a ploc which will end with more interest