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proper use of PLOC

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Established Contributor

proper use of PLOC

I was approved for US Bank Premier Line of Credit two month ago for 18K

 

Have not really use it, only small amount to test withdraw and payment timing

 

Do I have to use it to show I really need this account while paying interest (no grace period) along the way to make them happy or I can just leave it alone, use when I actually need money? 

 

Second question, does this account count against chase 5/24?

EX819 1HP|TU797 1HP| EQ(Fico8 BankCard)841
Message 1 of 11
10 REPLIES 10
Moderator Emeritus

Re: proper use of PLOC

noobody according to what the US Bank csr's told me, they allow us to use it when we need it. Now we know how accurate csr's can be so keep what they told me in mind. Likely, it would pay to use it for a few bucks once in a great while (what I do anyway).

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Message 2 of 11
Community Leader
Mega Contributor

Re: proper use of PLOC

I would use it once in awhile. Like any credit line, not using it can open oneself to cld or closure.
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Message 3 of 11
Valued Contributor

Re: proper use of PLOC

I have had US bank's RLOC for 3.75 years, have never used it.
When it was <2 years old it did not count against 5/24 and it is listed as a loan not revolving credit on my reports.
It is possible that the PLOC is different than the RLOC so YMMV
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Message 4 of 11
Contributor

Re: proper use of PLOC

Assuming US Bank is your primary bank, it should remain open indefinitely. 

 

 (I dont have US Bank), but I can say my PLOC with my bank has been open for 9 years, used for rainy day emergency, and remained unused an open for almost 5 years now. 

 

Additionally, its listed as an "other loan" on my credit report - not a credit card. My initial thought is that it would not impact Chases 5/24

Message 5 of 11
Established Contributor

Re: proper use of PLOC


@dragontears wrote:
I have had US bank's RLOC for 3.75 years, have never used it.
When it was <2 years old it did not count against 5/24 and it is listed as a loan not revolving credit on my reports.
It is possible that the PLOC is different than the RLOC so YMMV

i have it listed under REVOLVING account for First Tech FCU Ploc. I understand it should be a LOAN/Installment listing for credit report but its not that way.

Message 6 of 11
Moderator Emeritus

Re: proper use of PLOC

Frankly you should expect any new account to count against Chase 5/24 or other similar policies.  That way if it doesn't you are pleasantly surprised.

 

Ultimately a LOC of any sort is a use when you need it thing; I have a PLOC which I think is at 12% right now which is getting up towards my credit card APR's so I have to be pretty out of sorts financially to use it... especially with my "small" HELOC which admittedly is larger than the PLOC and it's at 5.25% currently... so that's what I use when I need to float a balance.  I did have a cash flow short-fall in December of last year (I knew I had a bucketful of money coming in and also got the darned car way faster than expected) so I did wind up using the PLOC as my HELOC was sadly too high at that point... paid it back a week later, and then paid off the HELOC the following month anyway.

 

I wouldn't really use a PLOC except as a rainy day backup source of funding, generally speaking credit cards are designed for short term float, and the typical APR on a PLOC is for longer term... and of course longer term than that is probably looking at an installment loan, or something attached to an asset like a HELOC.




        
Message 7 of 11
Established Contributor

Re: proper use of PLOC

According to CK, TU and EQ show account type as Line of Credit

According to Creditscore.com, EX account type is revolving, exactly the same as all other credit cards.
EX819 1HP|TU797 1HP| EQ(Fico8 BankCard)841
Message 8 of 11
Moderator Emeritus

Re: proper use of PLOC


@noobody wrote:
According to CK, TU and EQ show account type as Line of Credit

According to Creditscore.com, EX account type is revolving, exactly the same as all other credit cards.

For my US Bank PLOC it is reported the same as a credit card. Now US Bank informs me the Ready Reserves attached to their checking accounts are offered under the banking side of the organization and the PLOC's are offered under the credit card side. When I called in to do some credit line reallocations ... the CSR's said I couldn't do it so I went to a credit supervisor (as a good MyFicoer would do) and he treated them all as under one but, they reported different in the bureaus. Well anyway, they reallocated the PLOC and credit cards NOT the ready reserves. As seems to the norm, it may be a YMMV event?

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Message 9 of 11
Established Contributor

Re: proper use of PLOC

You reallocated CL between US Bank PLOC and Credit card recently?
That's good news.
EX819 1HP|TU797 1HP| EQ(Fico8 BankCard)841
Message 10 of 11
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