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.
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.
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
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.
@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. 😞
@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.