Thoughts on closing LOC's

[pizza1]

I have to two LOC accounts that Ive never used, and dont plan on it, at least not now.   They report monthly to CRA, and just sit there.  I'm aware if closed, they will report  positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit.  I have a NFCU CLOC $15K (max), opened 7/7/2014,  and a Penfed LOC $5K,  opened 4/6/2017.  These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation. 

Thoughts?

[SouthJamaica]

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@pizza1 wrote:

I have to two LOC accounts that Ive never used, and dont plan on it, at least not now.   They report monthly to CRA, and just sit there.  I'm aware if closed, they will report  positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit.  I have a NFCU CLOC $15K (max), opened 7/7/2014,  and a Penfed LOC $5K,  opened 4/6/2017.  These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation. 

Thoughts?

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I think it's better to keep them open, just in case you need them someday.

[ldkcivilservant]

How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.

[pizza1]

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@ldkcivilservant wrote:

How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.

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@ldkcivilservant , like 3-4%, lol...I have  a lot of credit. 

[GatorGuy]

These don't sound very important to score. So if you want to simplify, clear them out. 

[babygirl1256]

I would keep them as it's an additional -and- available $20k if needed. Look at it like it's a spare tire . . . you don't have all 5 tires on your vehicle at once . . . but . . . it's there when you need it!!! Just my 2 cents!!!

[gingerflower]

@pizza1 

I would keep both Loc especially with Nfcu bcuz from what I gather Navy does not give out the $15,000 Loc limit lately. You never know you might need the $20,000 for Emergency.  

[Anonymous]

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@pizza1 wrote:

I have to two LOC accounts that Ive never used, and dont plan on it, at least not now.   They report monthly to CRA, and just sit there.  I'm aware if closed, they will report  positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit.  I have a NFCU CLOC $15K (max), opened 7/7/2014,  and a Penfed LOC $5K,  opened 4/6/2017.  These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation. 

Thoughts?

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I would keep them esp the Navy since they no longer give out big CL on LOC like that anymore.  You never know when or if you may need them.   LOC's are better than credit card cash advance you if you ever needed to go that route as you don't have to pay the cash advance fee when using your LOC's.    Pen Fed I may close.  Navy not at all again for the sole reason they do not give out big LOC like that anymore.  Better safe than sorry

[CreditInspired]

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@SouthJamaica wrote:

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@pizza1 wrote:

I have to two LOC accounts that Ive never used, and dont plan on it, at least not now.   They report monthly to CRA, and just sit there.  I'm aware if closed, they will report  positively for another (up tp) 10 years on my reports.

But, Im trying to clean up how many "open" accounts I have over the next 2 years, and simplify my credit.  I have a NFCU CLOC $15K (max), opened 7/7/2014,  and a Penfed LOC $5K,  opened 4/6/2017.  These are two accounts I could close to help streamline my reports some. Closing them will not effect my overall utilzation. 

Thoughts?

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I think it's better to keep them open, just in case you need them someday.

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I was thinking the same thing. I haven't used my NFCU CLOC since I opened it about 3 years ago. When the pandemic hit last February, I was happy it was there if I needed it. Thankfully, I didn't need to. 

[FinStar]

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@pizza1 wrote:

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@ldkcivilservant wrote:

How sizable a percentage of your total credit portfolio are these LOCs?

If more than 15-20%, I personally would keep them on. If below that and they really don't get any use, dump 'em.

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@ldkcivilservant , like 3-4%, lol...I have  a lot of credit. 

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So we don't leave this thread hanging, which decision did you reach on your LOCs @pizza1?