cancel
Showing results for 
Search instead for 
Did you mean: 

To close or not to close Beneficial Finance LOC

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted
Member

To close or not to close Beneficial Finance LOC

I recently paid off a LOC installment loan I had with Beneficial Finance (HSBC).  This was for $10,000 and I was able to get a personal loan and refi a car loan thru my credit union in order to pay off the Beneficial Loan. (It was 29.9% interest rate)  New loans are much lower ((17%, and 11%)

So, even though my monthly payments will be about the same, the interest rates are so much lower it was worth it.

 

I am wondering if I should leave the LOC account open or if I should close it.  I doubt if I will access the available credit again because the interest rate was huge (they won't change the rate).  My credit cards are $250 limit (!!), and 3 that have $500 limits.  Right now they are close to limits, and I am paying them down asap.  Is it better to leave it open until I can get a higher limit card (either from credit union or other...)  I would probably wait about 6 months now since I just got these other loans.

 

Thanks for any advice anyone can give.

 

Scores:  Jan 2008    455 average

               July 2008    608 average 
Message 1 of 3
2 REPLIES 2
Highlighted
Moderator Emeritus

Re: To close or not to close Beneficial Finance LOC

How does this account report, installment or revolving?  It sounds like revolving and if it is, leave it open...a $0 balance reporting on such an account will help your scores.
Message 2 of 3
Highlighted
Member

Re: To close or not to close Beneficial Finance LOC

Thanks, Fused. 
 This account is showing as an installment on Exp and revolving on TU and Equifax.  I read the info at the sites you suggested.  just because an account is open, I don't have to use it, so I will leave it open for now until I can increase my CL on the other accounts.
 
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.