cancel
Showing results for 
Search instead for 
Did you mean: 

Switch Checking with LOC during rebuild

tag
moto4man
Regular Contributor

Switch Checking with LOC during rebuild

Good morning all!  I've got another scenario to throw at you that I'm considering.

 

I currently run all my checking and DD through Huntington Bank.  I've been with TCF>Huntington for about 15 years.  Shortly after the merger, I received an offer for a LOC on my checking.  (Stand By Cash).  I watched the offer in my app for months and finally decided to take them up on it.  I was granted the max of $1000.  Now at the time (November), this was a great thing!  I was/am in hardcore rebuild mode, so this added to my credit mix, as well as added an additional revolving account on my CR.

 

Now, here's the thing....  I started moving funds into a savings with them via my checking account weekly.   I personally cannot leave excess funds in my checking account as it makes it too easy to spend away, so this is the way I went.  Never the less... that affected my average daily balance, and they reduced my LOC.  This frustrates me regardless of how minimal in dollar amounts this account is.

 

I've since started a relationship with NFCU.  I've opened a small savings to get my foot in the door, and app'd/approved for a GoRewards card with a very significant CL.  Something Huntington would NEVER do for me!  Never the less... I'm considering shifting my checking and DD  over to Navy.  But in the process of this... I'm probably going to get that LOC shut down.  I've never used it, not once has there been any utiliztion on the account so I could care less about that.  The issue or concern I have is what the loss of that account will do to me from a FICO standpoint?   As it stands right now my credit mix is "excellent" according to all CRA.  And I have since opened up that GoRewards, and a Cap1 QS card.  Neither of these 2 accounts have hit the agencies yet.  So that gives me 3 new accounts in about 120 days.  With the 2 most recent about a month or 30 days.

 

I can probably stretch that Hunting LOC out a little while, but I'm not sure if there is a point in doing so.  What are your thoughts?  How will this impact my FICO scores?   I will be gardening for about a year after this, actually started gardening already, but this one came to mind and I felt now is the time if there ever was one.

Starting Score: 547EX
Current Score: 682EX 687EQ 687TU
Goal Score: 750


Take the myFICO Fitness Challenge
Message 1 of 5
4 REPLIES 4
FinStar
Moderator Emeritus

Re: Switch Checking with LOC during rebuild


@moto4man wrote:

Good morning all!  I've got another scenario to throw at you that I'm considering.

 

I currently run all my checking and DD through Huntington Bank.  I've been with TCF>Huntington for about 15 years.  Shortly after the merger, I received an offer for a LOC on my checking.  (Stand By Cash).  I watched the offer in my app for months and finally decided to take them up on it.  I was granted the max of $1000.  Now at the time (November), this was a great thing!  I was/am in hardcore rebuild mode, so this added to my credit mix, as well as added an additional revolving account on my CR.

 

Now, here's the thing....  I started moving funds into a savings with them via my checking account weekly.   I personally cannot leave excess funds in my checking account as it makes it too easy to spend away, so this is the way I went.  Never the less... that affected my average daily balance, and they reduced my LOC.  This frustrates me regardless of how minimal in dollar amounts this account is.

 

I've since started a relationship with NFCU.  I've opened a small savings to get my foot in the door, and app'd/approved for a GoRewards card with a very significant CL.  Something Huntington would NEVER do for me!  Never the less... I'm considering shifting my checking and DD  over to Navy.  But in the process of this... I'm probably going to get that LOC shut down.  I've never used it, not once has there been any utiliztion on the account so I could care less about that.  The issue or concern I have is what the loss of that account will do to me from a FICO standpoint?   As it stands right now my credit mix is "excellent" according to all CRA.  And I have since opened up that GoRewards, and a Cap1 QS card.  Neither of these 2 accounts have hit the agencies yet.  So that gives me 3 new accounts in about 120 days.  With the 2 most recent about a month or 30 days.

 

I can probably stretch that Hunting LOC out a little while, but I'm not sure if there is a point in doing so.  What are your thoughts?  How will this impact my FICO scores?   I will be gardening for about a year after this, actually started gardening already, but this one came to mind and I felt now is the time if there ever was one.


As far as your scores go, it is likely the impact may be negligible if you close it. 

 

Keep in mind, this is a line of credit which is grouped in the same category as revolving credit cards; meaning, its effects would be similar as if you carried a balance on any of your credit cards (i.e. it is not in the installment loan category where you could see other impacts to scores). Also, since it's in good standing (although never used), it can remain on your CRs for up to ~10 years if you decide to close it (give or take). About the only immediate impact you may see is the loss of the LOC available credit when compared to your overal TCL. 

Message 2 of 5
moto4man
Regular Contributor

Re: Switch Checking with LOC during rebuild


@FinStar wrote:

@moto4man wrote:

Good morning all!  I've got another scenario to throw at you that I'm considering.

 

I currently run all my checking and DD through Huntington Bank.  I've been with TCF>Huntington for about 15 years.  Shortly after the merger, I received an offer for a LOC on my checking.  (Stand By Cash).  I watched the offer in my app for months and finally decided to take them up on it.  I was granted the max of $1000.  Now at the time (November), this was a great thing!  I was/am in hardcore rebuild mode, so this added to my credit mix, as well as added an additional revolving account on my CR.

 

Now, here's the thing....  I started moving funds into a savings with them via my checking account weekly.   I personally cannot leave excess funds in my checking account as it makes it too easy to spend away, so this is the way I went.  Never the less... that affected my average daily balance, and they reduced my LOC.  This frustrates me regardless of how minimal in dollar amounts this account is.

 

I've since started a relationship with NFCU.  I've opened a small savings to get my foot in the door, and app'd/approved for a GoRewards card with a very significant CL.  Something Huntington would NEVER do for me!  Never the less... I'm considering shifting my checking and DD  over to Navy.  But in the process of this... I'm probably going to get that LOC shut down.  I've never used it, not once has there been any utiliztion on the account so I could care less about that.  The issue or concern I have is what the loss of that account will do to me from a FICO standpoint?   As it stands right now my credit mix is "excellent" according to all CRA.  And I have since opened up that GoRewards, and a Cap1 QS card.  Neither of these 2 accounts have hit the agencies yet.  So that gives me 3 new accounts in about 120 days.  With the 2 most recent about a month or 30 days.

 

I can probably stretch that Hunting LOC out a little while, but I'm not sure if there is a point in doing so.  What are your thoughts?  How will this impact my FICO scores?   I will be gardening for about a year after this, actually started gardening already, but this one came to mind and I felt now is the time if there ever was one.


As far as your scores go, it is likely the impact may be negligible if you close it. 

 

Keep in mind, this is a line of credit which is grouped in the same category as revolving credit cards; meaning, its effects would be similar as if you carried a balance on any of your credit cards (i.e. it is not in the installment loan category where you could see other impacts to scores). Also, since it's in good standing (although never used), it can remain on your CRs for up to ~10 years if you decide to close it (give or take). About the only immediate impact you may see is the loss of the LOC available credit when compared to your overal TCL. 


Yes, that's the way it shows on all of my reports, as a "revovling account". 

 

I did end up opening up that checking at NFCU, no HP!  Yay!!!  Going to switch all the dd info over this week.  Thanks!

Starting Score: 547EX
Current Score: 682EX 687EQ 687TU
Goal Score: 750


Take the myFICO Fitness Challenge
Message 3 of 5
keekers556
Frequent Contributor

Re: Switch Checking with LOC during rebuild

Also, FWIW NFCU also offers a CLOC if you want to establish that again.



Message 4 of 5
moto4man
Regular Contributor

Re: Switch Checking with LOC during rebuild


@keekers556 wrote:

Also, FWIW NFCU also offers a CLOC if you want to establish that again.


I did see that.  Several months ago when I opened the account, it was beneficial to me and my score.  Since then, I've acquired a couple of new revolving accounts.  So the three will be listed as accounts under 6 months old.  So, considering my situation I hope I won't need to utilize that option. 

Starting Score: 547EX
Current Score: 682EX 687EQ 687TU
Goal Score: 750


Take the myFICO Fitness Challenge
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.