topic Re: Thoughts on closing LOC's in General Credit Topics

Thoughts on closing LOC's

pizza1 — Mon, 07 Jun 2021 02:26:59 GMT

I have to two LOC accounts that Ive never used, and dont plan on it, at least not now. They report monthly to CRA, and just sit there. I'm aware if closed, they will report positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit. I have a NFCU CLOC $15K (max), opened 7/7/2014, and a Penfed LOC $5K, opened 4/6/2017. These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation.

Thoughts?

Re: Thoughts on closing LOC's

SouthJamaica — Mon, 07 Jun 2021 02:46:32 GMT

@pizza1 wrote:
I have to two LOC accounts that Ive never used, and dont plan on it, at least not now. They report monthly to CRA, and just sit there. I'm aware if closed, they will report positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit. I have a NFCU CLOC $15K (max), opened 7/7/2014, and a Penfed LOC $5K, opened 4/6/2017. These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation.

Thoughts?

I think it's better to keep them open, just in case you need them someday.

Re: Thoughts on closing LOC's

ldkcivilservant — Mon, 07 Jun 2021 17:12:06 GMT

How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.

Re: Thoughts on closing LOC's

pizza1 — Mon, 07 Jun 2021 21:06:30 GMT

@ldkcivilservant wrote:
How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.

@ldkcivilservant , like 3-4%, lol...I have a lot of credit.

Re: Thoughts on closing LOC's

GatorGuy — Tue, 08 Jun 2021 01:36:17 GMT

These don't sound very important to score. So if you want to simplify, clear them out.

Re: Thoughts on closing LOC's

babygirl1256 — Tue, 08 Jun 2021 02:10:05 GMT

I would keep them as it's an additional -and- available $20k if needed. Look at it like it's a spare tire . . . you don't have all 5 tires on your vehicle at once . . . but . . . it's there when you need it!!! Just my 2 cents!!!

Re: Thoughts on closing LOC's

gingerflower — Tue, 08 Jun 2021 06:25:59 GMT

@pizza1

I would keep both Loc especially with Nfcu bcuz from what I gather Navy does not give out the $15,000 Loc limit lately. You never know you might need the $20,000 for Emergency.

Re: Thoughts on closing LOC's

Anonymous — Tue, 08 Jun 2021 16:44:29 GMT

@pizza1 wrote:
I have to two LOC accounts that Ive never used, and dont plan on it, at least not now. They report monthly to CRA, and just sit there. I'm aware if closed, they will report positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit. I have a NFCU CLOC $15K (max), opened 7/7/2014, and a Penfed LOC $5K, opened 4/6/2017. These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation.

Thoughts?

I would keep them esp the Navy since they no longer give out big CL on LOC like that anymore. You never know when or if you may need them. LOC's are better than credit card cash advance you if you ever needed to go that route as you don't have to pay the cash advance fee when using your LOC's. Pen Fed I may close. Navy not at all again for the sole reason they do not give out big LOC like that anymore. Better safe than sorry

Re: Thoughts on closing LOC's

CreditInspired — Sat, 12 Jun 2021 12:54:03 GMT

@SouthJamaica wrote:
@pizza1 wrote:
I have to two LOC accounts that Ive never used, and dont plan on it, at least not now. They report monthly to CRA, and just sit there. I'm aware if closed, they will report positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit. I have a NFCU CLOC $15K (max), opened 7/7/2014, and a Penfed LOC $5K, opened 4/6/2017. These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation.

Thoughts?
I think it's better to keep them open, just in case you need them someday.

I was thinking the same thing. I haven't used my NFCU CLOC since I opened it about 3 years ago. When the pandemic hit last February, I was happy it was there if I needed it. Thankfully, I didn't need to.

Re: Thoughts on closing LOC's

FinStar — Sat, 12 Jun 2021 17:38:56 GMT

@pizza1 wrote:
@ldkcivilservant wrote:
How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.
@ldkcivilservant , like 3-4%, lol...I have a lot of credit.

So we don't leave this thread hanging, which decision did you reach on your LOCs @pizza1?

Re: Thoughts on closing LOC's

pizza1 — Sat, 12 Jun 2021 17:48:36 GMT

@FinStar wrote:
@pizza1 wrote:
@ldkcivilservant wrote:
How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.
@ldkcivilservant , like 3-4%, lol...I have a lot of credit.
So we don't leave this thread hanging, which decision did you reach on your LOCs @pizza1?

@FinStar , lol. Im more concerned about my Chase Amazon Visa right now, I cant think about this, LOL... I guess I will just leave it alone for now, and for sure keep the Navy LOC. I was lucky enough to get max on it. Havent decided about PF yet.

Re: Thoughts on closing LOC's

FinStar — Sat, 12 Jun 2021 17:59:33 GMT

@pizza1 wrote:
@FinStar wrote:
@pizza1 wrote:
@ldkcivilservant wrote:
How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.
@ldkcivilservant , like 3-4%, lol...I have a lot of credit.
So we don't leave this thread hanging, which decision did you reach on your LOCs @pizza1?
@FinStar , lol. Im more concerned about my Chase Amazon Visa right now, I cant think about this, LOL... I guess I will just leave it alone for now, and for sure keep the Navy LOC. I was lucky enough to get max on it. Havent decided about PF yet.

I'd hold onto it for sure. You can always evaluate things down the road if anything. Since the CLOC isn't hurting anything, and given NFCU lending criteria for CLOCs these days, I'm keeping mine as well 😁

Re: Thoughts on closing LOC's

Mr_Mojo_Risin — Sat, 12 Jun 2021 18:06:55 GMT

@pizza1 wrote:
@FinStar wrote:
@pizza1 wrote:
@ldkcivilservant wrote:
How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.
@ldkcivilservant , like 3-4%, lol...I have a lot of credit.
So we don't leave this thread hanging, which decision did you reach on your LOCs @pizza1?
@FinStar , lol. Im more concerned about my Chase Amazon Visa right now, I cant think about this, LOL... I guess I will just leave it alone for now, and for sure keep the Navy LOC. I was lucky enough to get max on it. Havent decided about PF yet.

Am I right to assume that the PLOC from PenFed has a little more stringent approval criteria than one of their cards?

Re: Thoughts on closing LOC's

FinStar — Sat, 12 Jun 2021 18:47:26 GMT

@Mr_Mojo_Risin wrote:
@pizza1 wrote:
@FinStar wrote:
@pizza1 wrote:
@ldkcivilservant wrote:
How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.
@ldkcivilservant , like 3-4%, lol...I have a lot of credit.
So we don't leave this thread hanging, which decision did you reach on your LOCs @pizza1?
@FinStar , lol. Im more concerned about my Chase Amazon Visa right now, I cant think about this, LOL... I guess I will just leave it alone for now, and for sure keep the Navy LOC. I was lucky enough to get max on it. Havent decided about PF yet.
Am I right to assume that the PLOC from PenFed has a little more stringent approval criteria than one of their cards?

You would be correct.

Re: Thoughts on closing LOC's

Mr_Mojo_Risin — Sun, 13 Jun 2021 10:43:06 GMT

@FinStar wrote:
@Mr_Mojo_Risin wrote:
@pizza1 wrote:
@FinStar wrote:
@pizza1 wrote:
@ldkcivilservant wrote:
How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.
@ldkcivilservant , like 3-4%, lol...I have a lot of credit.
So we don't leave this thread hanging, which decision did you reach on your LOCs @pizza1?
@FinStar , lol. Im more concerned about my Chase Amazon Visa right now, I cant think about this, LOL... I guess I will just leave it alone for now, and for sure keep the Navy LOC. I was lucky enough to get max on it. Havent decided about PF yet.
Am I right to assume that the PLOC from PenFed has a little more stringent approval criteria than one of their cards?
You would be correct.

Thank you for your response!