cancel
Showing results for 
Search instead for 
Did you mean: 

Checking line of credit inquiry.

tag
jazzyvar84
Regular Contributor

Checking line of credit inquiry.

Hello all,

 

i have been building my credit for over three years now and all my scores are above 730. I was wondering if applying for a checking line of credit was worth the hard pull. I have $66,400 in credit card limits. My car is paid for and I just think the credit mix would be great. Full disclosure. I'm afraid that I won't be able to make student loan payments in the future, so I'd rather have access to all the wonderful perks of good credit even after my credit tanks when student loans go into default. As of now, I have zero late payments and my utilization is at 17%. Should I apply for the CLOC? Any advice would be appreciated. 

24 REPLIES 24
Jnbmom
Credit Mentor

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

Hello all,

 

i have been building my credit for over three years now and all my scores are above 730. I was wondering if applying for a checking line of credit was worth the hard pull. I have $66,400 in credit card limits. My car is paid for and I just think the credit mix would be great. Full disclosure. I'm afraid that I won't be able to make student loan payments in the future, so I'd rather have access to all the wonderful perks of good credit even after my credit tanks when student loans go into default. As of now, I have zero late payments and my utilization is at 17%. Should I apply for the CLOC? Any advice would be appreciated. 


why do you think you are going to default on your students loans? I will be working on how not to have that happen, not inquiring about more credit to default on.....................................

EXP 780 EQ 791TU 795
Message 2 of 25
jazzyvar84
Regular Contributor

Re: Checking line of credit inquiry.

I work in education and the smallest payment amount will be around $1,800 per month. I just don't see how I could possibly do that. 

Message 3 of 25
FinStar
Moderator Emeritus

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

Hello all,

 

i have been building my credit for over three years now and all my scores are above 730. I was wondering if applying for a checking line of credit was worth the hard pull. I have $66,400 in credit card limits. My car is paid for and I just think the credit mix would be great. Full disclosure. I'm afraid that I won't be able to make student loan payments in the future, so I'd rather have access to all the wonderful perks of good credit even after my credit tanks when student loans go into default. As of now, I have zero late payments and my utilization is at 17%. Should I apply for the CLOC? Any advice would be appreciated. 


As far as credit mix, a CLOC reports in similar fashion as any good ole credit card.  So, I'm not sure of the type of mix you had in mind (you can definitely expand on that if anything).

 

Also, which CLOC product where you thinking about?  If it's with NFCU, starting limits usually hover around $500 (good ole $15K CLs are not the norm unless you're military personnel), similarly for PenFed as far as SLs go, but this would all depend on your overall profile, DTI, income, etc.

Message 4 of 25
Brian_Earl_Spilner
Credit Mentor

Re: Checking line of credit inquiry.

You also have to keep in mind that once your score tanks, there's always a chance of adverse action which could include closure of the LoC

    
Message 5 of 25
incognitony
Frequent Contributor

Re: Checking line of credit inquiry.

This is even with income based repayments or are they private?

Message 6 of 25
jazzyvar84
Regular Contributor

Re: Checking line of credit inquiry.

Hello. My student loans are federal. With income based, I could pay $1,200, then each year it will increase. I would be forgiven the rest after 120 payments. I just don't see how I could afford it. 

Message 7 of 25
jazzyvar84
Regular Contributor

Re: Checking line of credit inquiry.


@Brian_Earl_Spilner wrote:

You also have to keep in mind that once your score tanks, there's always a chance of adverse action which could include closure of the LoC


I didn't think they'd be checking my credit profile unless I applied for something else. My life would be perfect, if I didn't have these darn loans. 😞 

Message 8 of 25
jazzyvar84
Regular Contributor

Re: Checking line of credit inquiry.


@FinStar wrote:

@jazzyvar84 wrote:

Hello all,

 

i have been building my credit for over three years now and all my scores are above 730. I was wondering if applying for a checking line of credit was worth the hard pull. I have $66,400 in credit card limits. My car is paid for and I just think the credit mix would be great. Full disclosure. I'm afraid that I won't be able to make student loan payments in the future, so I'd rather have access to all the wonderful perks of good credit even after my credit tanks when student loans go into default. As of now, I have zero late payments and my utilization is at 17%. Should I apply for the CLOC? Any advice would be appreciated. 


As far as credit mix, a CLOC reports in similar fashion as any good ole credit card.  So, I'm not sure of the type of mix you had in mind (you can definitely expand on that if anything).

 

Also, which CLOC product where you thinking about?  If it's with NFCU, starting limits usually hover around $500 (good ole $15K CLs are not the norm unless you're military personnel), similarly for PenFed as far as SLs go, but this would all depend on your overall profile, DTI, income, etc.


Are you saying the cloc is not worth it??? I thought it was a bit of a badge of honor to have a cloc. 

Message 9 of 25
Jnbmom
Credit Mentor

Re: Checking line of credit inquiry.


@jazzyvar84 wrote:

Are you saying the cloc is not worth it??? I thought it was a bit of a badge of honor to have a cloc. 


Badge of honor????????? Not really at all

EXP 780 EQ 791TU 795
Message 10 of 25
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.