topic Re: Closing Checking Line of Credit? in Understanding FICO® Scoring

Closing Checking Line of Credit?

Anonymous — Sun, 21 Jul 2019 21:31:06 GMT

Hello, just wondering what the thoughts are on if I should close out a checking line of credit I have with NFCU. I have a personal loan paid down to 1% of original value that will boost my score for the next 36 months. If I close out the line of credit will my score go down due to losing the additional product type? Or am I good to go considering I have the personal loan as an "other"?

All credit cards are zero except one which is less than a 10% utilization.

Thanks.

Re: Closing Checking Line of Credit?

SouthJamaica — Sun, 21 Jul 2019 21:40:33 GMT

@Anonymous wrote:
Hello, just wondering what the thoughts are on if I should close out a checking line of credit I have with NFCU. I have a personal loan paid down to 1% of original value that will boost my score for the next 36 months. If I close out the line of credit will my score go down due to losing the additional product type? Or am I good to go considering I have the personal loan as an "other"?

All credit cards are zero except one which is less than a 10% utilization.

Thanks.

The NFCU CLOC is scored just like a credit card. No reason to close it. You might need it some day.

Re: Closing Checking Line of Credit?

Anonymous — Sun, 21 Jul 2019 22:52:49 GMT

@SouthJamaica wrote:
@Anonymous wrote:
Hello, just wondering what the thoughts are on if I should close out a checking line of credit I have with NFCU. I have a personal loan paid down to 1% of original value that will boost my score for the next 36 months. If I close out the line of credit will my score go down due to losing the additional product type? Or am I good to go considering I have the personal loan as an "other"?

All credit cards are zero except one which is less than a 10% utilization.

Thanks.
The NFCU CLOC is scored just like a credit card. No reason to close it. You might need it some day.

Fair enough, I am just trying to minimize my life, and I was going to close out the NFCU checking and they said the CLOC has to go too.

Re: Closing Checking Line of Credit?

Anonymous — Sun, 21 Jul 2019 23:02:02 GMT

Are the points worth more than the simplicity of one less Checking account?

Re: Closing Checking Line of Credit?

Anonymous — Sun, 21 Jul 2019 23:04:18 GMT

@Anonymous wrote:
Are the points worth more than the simplicity of one less Checking account?

Yes possibly as I will be doing a mortgage within the next 3 months.

Re: Closing Checking Line of Credit?

Anonymous — Mon, 22 Jul 2019 05:09:31 GMT

Then AZEO is more important to figure out to prep for the app.

Kill the CLOC after the keys are in hand.

Re: Closing Checking Line of Credit?

Brian_Earl_Spilner — Mon, 22 Jul 2019 05:21:20 GMT

Close it and your aggregate utilization will go up.

Re: Closing Checking Line of Credit?

Anonymous — Mon, 22 Jul 2019 09:40:24 GMT

@Anonymous... why? You can use the NFCU CLOC as padding and maybe a just in case! For now you can just not "poke the bear" as you build a profile

Re: Closing Checking Line of Credit?

HeavenOhio — Mon, 22 Jul 2019 10:01:45 GMT

@Anonymous, thanks for clarifying that you also wanted to close the checking account. That makes a difference. If you don't need either checking or the CLOC, they can be dumped as a pair. If you need the checking account, it wouldn't make sense to dump the CLOC.

But as mentioned, don't close the checking/CLOC until your keys are in hand. You don't want any changes to your credit report between now and the time the mortgage closes.

At that point, close the accounts if you want to.

Re: Closing Checking Line of Credit?

Anonymous — Sat, 27 Jul 2019 16:45:25 GMT

Thanks for the replies, I went ahead and closed. My loan officer said it wouldnt matter and it won't affect my utilization as I am AZEO anyway.