To close or not to close Beneficial Finance LOC

Anonymous · ‎07-21-2008

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

fused · ‎07-21-2008

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.

Anonymous · ‎07-22-2008

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.