topic Re: PLOC for Score Bump? in Understanding FICO® Scoring

PLOC for Score Bump?

Anonymous — Fri, 31 Dec 2021 04:15:53 GMT

Hi all quick question,

Is it worth getting a small personal line of credit? My CU can use an earlier pull so there would be no INQ just a new account. I don't need one for utilization or even budget purposes, my sole interest would be if that it counts as a different "account type" so my question is, does it count differently than a credit card and help boost score? Or would it only help with overall utilization?

Re: PLOC for Score Bump?

FireMedic1 — Fri, 31 Dec 2021 12:23:10 GMT

It only helps if you have no other installment loans like home,auto, ect. Loan util doesnt affect revolving credit util %'s individual or aggregate. Whos the CU you posting about?

Re: PLOC for Score Bump?

SouthJamaica — Sun, 02 Jan 2022 17:35:43 GMT

@Anonymous wrote:
Hi all quick question,

Is it worth getting a small personal line of credit? My CU can use an earlier pull so there would be no INQ just a new account. I don't need one for utilization or even budget purposes, my sole interest would be if that it counts as a different "account type" so my question is, does it count differently than a credit card and help boost score? Or would it only help with overall utilization?

I do not know whether it helps your credit mix or not.

But I'm pretty certain that whatever points you gain will be outweighed by those you lose from ~~inquiry~~, resetting AoYA, and lowering AAoA.

So my advice would be not to add it.

As a general rule, I would advise people not to add credit accounts they don't need.

Re: PLOC for Score Bump?

HeavenOhio — Fri, 31 Dec 2021 16:38:53 GMT

My understanding is that a PLOC is a revolving account.

Re: PLOC for Score Bump?

Junejer — Fri, 31 Dec 2021 18:07:25 GMT

@HeavenOhio wrote:
My understanding is that a PLOC is a revolving account.

Someone who has a PLOC can chime in on whether it is included in util or not. As for my HELOC, it is listed with my CCs, however the util is not included in my revolving util. I'm not sure when a LOC might be included and when it won't be included in util (maybe size of LOC?).

Re: PLOC for Score Bump?

SouthJamaica — Fri, 31 Dec 2021 19:21:52 GMT

@HeavenOhio wrote:
My understanding is that a PLOC is a revolving account.

Oh it definitely is. And in utilization it's scored the same way as a credit card.

But the credit reports do separate the "lines of credit" from the credit cards.

Re: PLOC for Score Bump?

SouthJamaica — Fri, 31 Dec 2021 19:22:43 GMT

@Junejer wrote:
@HeavenOhio wrote:
My understanding is that a PLOC is a revolving account.
Someone who has a PLOC can chime in on whether it is included in util or not.

It absolutely is.

As for my HELOC, it is listed with my CCs, however the util is not included in my revolving util. I'm not sure when a LOC might be included and when it won't be included in util (maybe size of LOC?).

Re: PLOC for Score Bump?

FireMedic1 — Fri, 31 Dec 2021 20:55:49 GMT

"Because it's an installment loan, a personal loan doesn't factor into your credit utilization ratio, which measures how much of your available revolving credit you're using. Using a personal loan to pay off revolving credit, such as credit card debt, can help you improve your credit scores by replacing revolving debt (which factors into your credit utilization ratio) with an installment loan (which doesn't)."

https://www.experian.com/blogs/ask-experian/how-does-a-personal-loan-impact-your-credit/

Re: PLOC for Score Bump?

Junejer — Sat, 01 Jan 2022 20:33:14 GMT

@FireMedic1 wrote:
"Because it's an installment loan, a personal loan doesn't factor into your credit utilization ratio, which measures how much of your available revolving credit you're using. Using a personal loan to pay off revolving credit, such as credit card debt, can help you improve your credit scores by replacing revolving debt (which factors into your credit utilization ratio) with an installment loan (which doesn't)."
https://www.experian.com/blogs/ask-experian/how-does-a-personal-loan-impact-your-credit/

A personal loan is different from a personal line of credit though.

Re: PLOC for Score Bump?

SouthJamaica — Sat, 01 Jan 2022 20:38:06 GMT

@FireMedic1 wrote:
"Because it's an installment loan, a personal loan doesn't factor into your credit utilization ratio, which measures how much of your available revolving credit you're using. Using a personal loan to pay off revolving credit, such as credit card debt, can help you improve your credit scores by replacing revolving debt (which factors into your credit utilization ratio) with an installment loan (which doesn't)."
https://www.experian.com/blogs/ask-experian/how-does-a-personal-loan-impact-your-credit/

That is about personal installment loans, not personal lines of credit.

Re: PLOC for Score Bump?

Anonymous — Sun, 02 Jan 2022 05:55:50 GMT

Interesting. I do not have any types of loans beyond credit cards so it may be worthwhile.

Re: PLOC for Score Bump?

FireMedic1 — Mon, 03 Jan 2022 22:38:21 GMT

@Junejer @SouthJamaica Copy that.

@AnonymousIf you can get into NFCU or PENFED and grab a SSL and then pay it down to 8%. That will complete the credit mix. Since you have no loans.

Re: PLOC for Score Bump?

Anonymous — Tue, 04 Jan 2022 01:57:43 GMT

Unfortunately I'll never be back with NFCU, as they were significantly burned in my BK, so I have closed my membership owing to that fact. My CU now offers SSL so perhaps I'll look into that, thanks.

Re: PLOC for Score Bump?

FireMedic1 — Tue, 04 Jan 2022 10:28:20 GMT

Not to hijack and aviod a thread. @SouthJamaica or @Junejer . So the PLOC is like a unsecured revolving credit line with no card and no perks. Its just there for when you need it. Although I after reading. Its not considered a installment loan?

Re: PLOC for Score Bump?

SouthJamaica — Tue, 04 Jan 2022 15:37:41 GMT

@FireMedic1 wrote:
Not to hijack and aviod a thread. @SouthJamaica or @Junejer . So the PLOC is like a unsecured revolving credit line with no card and no perks.

Correct.

Its just there for when you need it.

Correct.

Although I after reading. Its not considered a installment loan?

Correct.

Re: PLOC for Score Bump?

FireMedic1 — Tue, 04 Jan 2022 16:05:04 GMT

@SouthJamaica wrote:
@FireMedic1 wrote:
Not to hijack and aviod a thread. @SouthJamaica or @Junejer . So the PLOC is like a unsecured revolving credit line with no card and no perks.

Correct.

Its just there for when you need it.

Correct.

Although after reading. Its not considered a installment loan?

Correct.

@SouthJamaica 10-4. Interesting. I deleted the "I" Duh. So in a way its always there when you need it and dont have to apply for a loan each time you need 1 and saves new accounts added each time.

Re: PLOC for Score Bump?

Junejer — Tue, 04 Jan 2022 16:24:11 GMT

@FireMedic1 wrote:
@SouthJamaica wrote:
@FireMedic1 wrote:
Not to hijack and aviod a thread. @SouthJamaica or @Junejer . So the PLOC is like a unsecured revolving credit line with no card and no perks.

Correct.

Its just there for when you need it.

Correct.

Although after reading. Its not considered a installment loan?

Correct.

@SouthJamaica 10-4. Interesting. I deleted the "I" Duh. So in a way its always there when you need it and dont have to apply for a loan each time you need 1 and saves new accounts added each time.

Yep, what SJ said.

Re: PLOC for Score Bump?

SouthJamaica — Tue, 04 Jan 2022 17:23:25 GMT

@FireMedic1 wrote:
@SouthJamaica wrote:
@FireMedic1 wrote:
Not to hijack and aviod a thread. @SouthJamaica or @Junejer . So the PLOC is like a unsecured revolving credit line with no card and no perks.

Correct.

Its just there for when you need it.

Correct.

Although after reading. Its not considered a installment loan?

Correct.

@SouthJamaica 10-4. Interesting. I deleted the "I" Duh. So in a way its always there when you need it and dont have to apply for a loan each time you need 1 and saves new accounts added each time.

Yes that's part of the beauty of it.

Another part is that when you run into someone who needs a check, and doesn't accept credit cards, and you don't happen to have that money in your checking account that day, you can cover it from your PLOC (some PLOC's are automatic overdraft lines of credit, some not automatic but very easy).

Re: PLOC for Score Bump?

MannyPobre — Sun, 06 Feb 2022 11:43:23 GMT

So, does a PLOC balance count towards credit utilization?

Re: PLOC for Score Bump?

SouthJamaica — Sun, 06 Feb 2022 12:01:12 GMT

@MannyPobre wrote:
So, does a PLOC balance count towards credit utilization?

Yes. Both the balance and the limit count towards your revolving utilization.