Should I close 7 yr old line of credit to get an CLI?

[Anonymous]

I currently have a $1500 PLOC with my CU that is ag 90%. I asked for a CLI but the only way they increase your line is by closing the old one and opening a new one. I recently went on a serious spree for business purposes (7 new accounts) so I'm already concerned about the impact of the spree and my credit age. My oldest account is about 12 yrs old...my average is about 5.7. Should I keep the lower limit or increase it and improve my uti?

[Anonymous]

The best way to solve the problem of high utilization is to pay off debt.  It also saves you money on interest.

[Anonymous]

I can pay it off and do pay it off every month...but then paying it off for me would be nice. My purpose for the CLI is not to improve the uti (actually it won't do that anyway because it will close out that account). The purpose was for th additional funds. I failed to mention the amount in my op...new LOC will be 7k.

The question I meant was...is the larger credit line worth the reduction in credit age?

[Anonymous]

---

@Anonymous wrote:
I can pay it off and do pay it off every month...but then paying it off for me would be nice. My purpose for the CLI is not to improve the uti (actually it won't do that anyway because it will close out that account). The purpose was for th additional funds. I failed to mention the amount in my op...new LOC will be 7k.

The question I meant was...is the larger credit line worth the reduction in credit age?

---

I'm very confused. You mentioned it's at 90% but then that you pay it off every month. You said it was to improve util but then said it wasn't for that.

I think the answer is that if you need to access the $, you need to access the $.

[Anonymous]

My brain was all over the place.  I typically pay in full...right now it's at about 90% but my statement doesn't close until the end of the month.  If I could get away with NOT paying in full by extending the CL that would have been great!  So I was kinda weighing all my options...not paying in full and allowing a balance to report...extending the LOC and allowing the balance to report with a higher limit.  But as like I said...I really hadn't thought that through clearly because, they will pay off the balance on the older account so it will be a new line of credit at 0%.   Not sure how all of the extra information helps you give me an opinion on what I should do...but no worries.  

[Anonymous]

---

@Anonymous wrote:
My brain was all over the place.  I typically pay in full...right now it's at about 90% but my statement doesn't close until the end of the month.  If I could get away with NOT paying in full by extending the CL that would have been great!  So I was kinda weighing all my options...not paying in full and allowing a balance to report...extending the LOC and allowing the balance to report with a higher limit.  But as like I said...I really hadn't thought that through clearly because, they will pay off the balance on the older account so it will be a new line of credit at 0%.   Not sure how all of the extra information helps you give me an opinion on what I should do...but no worries.  

---

I follow you now

Unless you need to app for something important very soon, I wouldn't stress a high balance reporting just once. Your score will bounce back the next time it reports with low utilization. 

You can also pay in full and draw again after the statement cycles . . . but be careful if you find yourself doing that continuously. If it's becoming a habit, I'd say to try and draw less and less each time and get yourself out of the pay/borrow again cycle.