Help Checking Plus account with Citibank

Anonymous · ‎05-08-2008

I have a bank account from Citibank, I've been their client for the last 4 years. I have a checking account, a saving account and a Checking Plus account which is a Line/Loan of credit, in case you go over with your checking account they money will be taken from the Checking Plus account instead of an OVER FEE.

My Question is>> I have this Checking Plus with a Line/Loan of credit of $5000.00 and the current balance is $0.00, but even if I use it wont show on my credit report a balance. Is this type of Line/loan credit any good for my Score? If i close it will my score increase or decrease?

Am trying to get a Loan for a Mortgage but I wanna increase my Score before applying.

any one with Citibank Checking plus account.

Thanks

Anonymous · ‎05-08-2008

makinaria wrote:
I have a bank account from Citibank, I've been their client for the last 4 years. I have a checking account, a saving account and a Checking Plus account which is a Line/Loan of credit, in case you go over with your checking account they money will be taken from the Checking Plus account instead of an OVER FEE.

My Question is>> I have this Checking Plus with a Line/Loan of credit of $5000.00 and the current balance is $0.00, but even if I use it wont show on my credit report a balance. Is this type of Line/loan credit any good for my Score? If i close it will my score increase or decrease?

Am trying to get a Loan for a Mortgage but I wanna increase my Score before applying.

any one with Citibank Checking plus account.

Thanks

Your score is based on a "snapshot" of your CR, if it isn't there, it can't count it.

Anonymous · ‎05-08-2008

Thanks Sidewinder for you quick responce!

But my question is , If this type of credit is good or bad for your credit report? Because it shows as a loan o a checking line of credit. but only shows the line of $5000 and a Zero balance!

Anonymous · ‎05-08-2008

If It is showing on your report as a 0 balance and a 5000 CL, it should be helping you. Its also supposed to be good to have different types of credits.. installment, revolving, etc.

Anonymous · ‎05-09-2008

makinaria wrote:
Thanks Sidewinder for you quick responce!

But my question is , If this type of credit is good or bad for your credit report? Because it shows as a loan o a checking line of credit. but only shows the line of $5000 and a Zero balance!

Does it show on your report?

Anonymous · ‎05-09-2008

I have a checking plus account with Citi and it shows on all 3 of my reports as a LOC. The balance is reported and it updates every month with the new balance, if I have one.

Anonymous · ‎05-09-2008

I'm not the credit expert, but I recently had some personal identity info stolen from the company I work for.

As a result, I transferred my balances from my one Citibank Accout to another - and when the bank employee asked me if I wanted to include overdraft protection in the new account, I figured, "why not?" I didn't really need it, but I figured it would be a good failsafe.

I came to regret it - since it's essentially opening another credit line and another inquiry got created. My FICO immediately dropped.

You're talking about a different scenario, but just FYI...

Anonymous · ‎05-10-2008

The overdraft LOC would affect your credit like applying for a new credit card. Under $50k would be seen as revolving. I'd probably apply for a credit card instead of an LOC if you don't need it. The card will at least give you more history where as the loc will just become dormant in my opinion. But you never know since we are going to be using FICO 08 soon which may identify the LOC for what it is. But that's just guessing and right now unless you will use it, its probably not the best choice if you are only doing it to try and build up your score.

Pros/Cons.
Credit Line $5000 adds to your UTL
New account, drops avg age
New inq, drops score
LOC should you be careless with your checking account can save you.

50/50 up to you. I choose not to have it since my average age would take a hit. Their kinda cool to have though if you actually plan on using it. If you already have great credit loosing 10-20 points would not be that much of an issue for 12 months for the security of overdraft protection. I never overdraft so it would be pointless for me.

On the other hand if you use it monthly it could help your score long term. But I don't know anyone who's properly tested this action. If you aren't going to use it, then I's say don't get it.

If you just finished an app spree and got 10 new credit cards and destroyed your avg age and such, I don't think it would hurt to apply for this too since you have already done the short term damage.

Message Edited by ilovepizza on 05-10-2008 01:48 PM