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Personal Line of Credit Data Points

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donprimero
Member

Personal Line of Credit Data Points

I have two questions about a personal line of credit from Truist Bank, and I'll give some context beforehand to help everyone who would like to weigh in.

 

My FICO scores are 765+ across the 3 bureaus from having 4 credit cards for 1.5 years (always reporting a low balance and paid off in full every month) and some positive AU history from my dad's old cards from my teenage years. I have a goal to start my own porofolio of rental properties within the next 12 months and I figured a personal line of credit could be useful in starting that journey. I have a money market and checking account with Truist, so there is a relationship factor here. The Truist PLOC description on their site was pretty bare-bones so I have two questions below.

 

1) I've read some PLOCs start to accrue interest at the moment of withdrawl, and some do not accrue interest until the payment due date. Does Truist PLOC accrue interest as soon as a transaction is completed, or can you look at your statment balance and choose to pay it off in full? I'm not used to paying interest, so that would be a big factor to me. Of course some might rightfully comment I'll pay some interest once I get real estate loans, but I'd like to know what I'm walking in to with this PLOC situation.

 

2) How long does a typical Truist PLOC last, and if the withdrawl period is over and I've used it responsibly, what does the "re-application" look like? A.K.A will I get a hard pull, or will they grant a new withdrawl period with a soft pull. It'd suck to have a revolving tradeline removed from my report, but if you have to re-apply with a hard pull or two every year or so, it might not be worth it.

 

Some Truist-specific datapoints would be great but if you have datapoints from a PLOC from a different lender, that would also be helpful!

5 REPLIES 5
SouthJamaica
Mega Contributor

Re: Personal Line of Credit Data Points


@donprimero wrote:

I have two questions about a personal line of credit from Truist Bank, and I'll give some context beforehand to help everyone who would like to weigh in.

 

My FICO scores are 765+ across the 3 bureaus from having 4 credit cards for 1.5 years (always reporting a low balance and paid off in full every month) and some positive AU history from my dad's old cards from my teenage years. I have a goal to start my own porofolio of rental properties within the next 12 months and I figured a personal line of credit could be useful in starting that journey. I have a money market and checking account with Truist, so there is a relationship factor here. The Truist PLOC description on their site was pretty bare-bones so I have two questions below.

 

1) I've read some PLOCs start to accrue interest at the moment of withdrawl, and some do not accrue interest until the payment due date. Does Truist PLOC accrue interest as soon as a transaction is completed, or can you look at your statment balance and choose to pay it off in full? I'm not used to paying interest, so that would be a big factor to me. Of course some might rightfully comment I'll pay some interest once I get real estate loans, but I'd like to know what I'm walking in to with this PLOC situation.

 

2) How long does a typical Truist PLOC last, and if the withdrawl period is over and I've used it responsibly, what does the "re-application" look like? A.K.A will I get a hard pull, or will they grant a new withdrawl period with a soft pull. It'd suck to have a revolving tradeline removed from my report, but if you have to re-apply with a hard pull or two every year or so, it might not be worth it.

 

Some Truist-specific datapoints would be great but if you have datapoints from a PLOC from a different lender, that would also be helpful!


I don't have experience with Truist but ALL PLOC's charge interest from the date you take out the money.

 

I've never heard of a PLOC that requires re-applying after a year or two, but if Truist's PLOC's have a limited draw period, you should ask Truist what it is.

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 2 of 6
RickNATL
Established Contributor

Re: Personal Line of Credit Data Points

@SouthJamaica I am on the phone with them as I type, applying for their PLOC. Some notes from questions I've asked on this call:

- Minimum LOC asks is $5k to max, $50K

- PLOC life is 15 years; reapply for the PLOC will be the same steps as the first time.

- If you have a balance and don't renew, it has to be paid in full. If you reapply and open a new PLOC with them, you can move the balance from the old one to the new PLOC.

- Don't need to attach the PLOC to any checking/saving accounts

- Interest range from 13.44% to 17.99% depending on credit, assets, etc.

- Personal Financial statement is taken by phone/person (they ask for a listing of assets -vehicle(s) - they look at book value, home - bank accounts (cash) - I have a few, only gave them one with big deposits; Stocks, insurance, partnership/JV, and more, etc.)

- Options on how you pay back (1.5% minimum, interest only - will require a balloon payment of principal on the back end, or fixed payment)

- Because a PLOC is treated as cash when you move money off it, interest is immediate

- The bureau they use is Equifax (I'll confirm)

- If they don't give you the SL you want, they will counteroffer with a lower SL

- If your personal financial statement is debt-heavy, they will offer to pay some of it as part of setting up the PLOC

 

Let's say this was the MOST INTRUSIVE PLOC I have ever applied for. Matter of fact, no others have required this much. Last, underwriters will review; you close at a Truist Branch if approved. Hope that helps.

Message 3 of 6
SouthJamaica
Mega Contributor

Re: Personal Line of Credit Data Points


@RickNATL wrote:

@SouthJamaica I am on the phone with them as I type, applying for their PLOC. Some notes from questions I've asked on this call:

- Minimum LOC asks is $5k to max, $50K

- PLOC life is 15 years; reapply for the PLOC will be the same steps as the first time.

- If you have a balance and don't renew, it has to be paid in full. If you reapply and open a new PLOC with them, you can move the balance from the old one to the new PLOC.

- Don't need to attach the PLOC to any checking/saving accounts

- Interest range from 13.44% to 17.99% depending on credit, assets, etc.

- Personal Financial statement is taken by phone/person (they ask for a listing of assets -vehicle(s) - they look at book value, home - bank accounts (cash) - I have a few, only gave them one with big deposits; Stocks, insurance, partnership/JV, and more, etc.)

- Options on how you pay back (1.5% minimum, interest only - will require a balloon payment of principal on the back end, or fixed payment)

- Because a PLOC is treated as cash when you move money off it, interest is immediate

- The bureau they use is Equifax (I'll confirm)

- If they don't give you the SL you want, they will counteroffer with a lower SL

- If your personal financial statement is debt-heavy, they will offer to pay some of it as part of setting up the PLOC

 

Let's say this was the MOST INTRUSIVE PLOC I have ever applied for. Matter of fact, no others have required this much. Last, underwriters will review; you close at a Truist Branch if approved. Hope that helps.


Let me just throw this out there:  I once had 2 PLOC's with Santander Bank. Unbeknownst to me they had a "draw" period of 5 years, after which they went into a "repayment" period of 5 years. When, near the end of the "draw" period, I learned that it was ending, the way they described the repayment period was that you had a 5 year period to pay down the balance with monthly payments. That sounded fine to me, until the repayment period began and they were reporting the PLOC's to the credit bureaus as revolving accounts with a credit limit equal to the then balance -- i.e. as 100% maxed out revolving accounts. First I gasped. Then I moved heaven and earth to pay them off ASAP.

 

BTW they were sticky to deal with too, as Truist appears to be. It's one of the few things I've had to actually go into a branch for, to "close" on the PLOC's.

 

Truist doesn't sound great to me.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 4 of 6
RickNATL
Established Contributor

Re: Personal Line of Credit Data Points

Understood. I have others I have been happy with and only required an application. I told the Truist rep it was the most intrusive litany of questions that clearly eluded to, "Truist doesn't trust its customers" ... LOL

 

However, I wanted to share those points b/c I found your post in a search as I was trying to find data points on them myself.

Message 5 of 6
donprimero
Member

Re: Personal Line of Credit Data Points


@RickNATL wrote:

@SouthJamaica I am on the phone with them as I type, applying for their PLOC. Some notes from questions I've asked on this call:

- Minimum LOC asks is $5k to max, $50K

- PLOC life is 15 years; reapply for the PLOC will be the same steps as the first time.

- If you have a balance and don't renew, it has to be paid in full. If you reapply and open a new PLOC with them, you can move the balance from the old one to the new PLOC.

- Don't need to attach the PLOC to any checking/saving accounts

- Interest range from 13.44% to 17.99% depending on credit, assets, etc.

- Personal Financial statement is taken by phone/person (they ask for a listing of assets -vehicle(s) - they look at book value, home - bank accounts (cash) - I have a few, only gave them one with big deposits; Stocks, insurance, partnership/JV, and more, etc.)

- Options on how you pay back (1.5% minimum, interest only - will require a balloon payment of principal on the back end, or fixed payment)

- Because a PLOC is treated as cash when you move money off it, interest is immediate

- The bureau they use is Equifax (I'll confirm)

- If they don't give you the SL you want, they will counteroffer with a lower SL

- If your personal financial statement is debt-heavy, they will offer to pay some of it as part of setting up the PLOC

 

Let's say this was the MOST INTRUSIVE PLOC I have ever applied for. Matter of fact, no others have required this much. Last, underwriters will review; you close at a Truist Branch if approved. Hope that helps.


Thank you kindly for doing the legwork on the datapoints! You've earned my one & only kudos from my 1-week old account, haha. You also mentioned you have or have looked into some other PLOCs-- do you mind sharing them so I/others on the forum can check them out? I haven't been able to find many of them.

Message 6 of 6
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