PLOC question

[Traveler101]

When it comes to a PLOC, does it expire after a certain time? I know you only have a payment if you use it. I'm just wondering is there like a statute of limitation on it and it expires? I've never had one. Thanks!

[SouthJamaica]

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@Traveler101 wrote:

When it comes to a PLOC, does it expire after a certain time? I know you only have a payment if you use it. I'm just wondering is there like a statute of limitation on it and it expires? I've never had one. Thanks!

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My PLOC's from Santander Bank did have a time limit.  5 years.  I don't know about the others.

[Traveler101]

@SouthJamaica wrote:

@Traveler101 wrote:

When it comes to a PLOC, does it expire after a certain time? I know you only have a payment if you use it. I'm just wondering is there like a statute of limitation on it and it expires? I've never had one. Thanks!

My PLOC's from Santander Bank did have a time limit. 5 years. I don't know about the others.

Thanks. I am seeing how they have draw periods and they expire. I never knew how they worked. I appreciate it.

[gingerflower]

@Traveler101 

One of my bank PLOC with American Savings in Hawaii has a 3 year draw and 4 year repayment.  It includes a personal express visa and personal line of credit checks. 

[Traveler101]

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@gingerflower wrote:

@Traveler101 

One of my bank PLOC with American Savings in Hawaii has a 3 year draw and 4 year repayment.  It includes a personal express visa and personal line of credit checks. 

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Thanks. I had a huge misconception on how they worked. I thought they just remained open indefinitely as long as in good standing. Similar to a credit card. I was way off. I can see where they could be beneficial for a major unexpected expense. Thanks for the insight. 

[SouthJamaica]

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@Traveler101 wrote:

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@gingerflower wrote:

@Traveler101 

One of my bank PLOC with American Savings in Hawaii has a 3 year draw and 4 year repayment.  It includes a personal express visa and personal line of credit checks. 

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Thanks. I had a huge misconception on how they worked. I thought they just remained open indefinitely as long as in good standing. Similar to a credit card. I was way off. I can see where they could be beneficial for a major unexpected expense. Thanks for the insight. 

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I had the same misconception too, until Santander pulled the rug out from under me. I wouldn't have minded being in a repayment phase, but they were reporting them as closed accounts with a 100% balance -- which would have been seriously negative for my credit scores -- thus forcing me to pay them off all at once, which stung.

I'm afraid to look into whether my existing PLOC's have a similar time bomb built into them.

[M_Smart007]

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@Traveler101 wrote:

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@gingerflower wrote:

@Traveler101 

One of my bank PLOC with American Savings in Hawaii has a 3 year draw and 4 year repayment.  It includes a personal express visa and personal line of credit checks. 

---

Thanks. I had a huge misconception on how they worked. I thought they just remained open indefinitely as long as in good standing. Similar to a credit card. I was way off. I can see where they could be beneficial for a major unexpected expense. Thanks for the insight. 

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@Traveler101, I have had a few PLOC's closed for non-use / time expiration.

I feel it is best to have a few low APR CU cards. (with no CA fee) Should the need arise.

[805orbust]

AFAIK every one I've had (which honestly isn't alot) has had a time limit.  Matter of fact, even my HELOC's have had a limited duration.  Of course the last HELOC I had was back in 2007 from Washington Mutual... sheesh.