He there, also a WSECU member!! I would think that maxing out our line of credit is the same as a credit card since the total utilization is what matters?! I love our credit union though!! They gave me a 8k increase on my checking LOC!!! 😁
@Anonymous wrote:It depends how your bank reports it, but it's probably going to report as an installment loan. Since utilization on an installment loan doesn't have as much effect as utilization of revolving credit, it's not going to hurt your score as much as maxing out your credit cards.
One thing to remember, though, is that the hit you take for utilization is temporary. As soon as you get your utilization down, it's like it was never high. It doesn't have a cumulative effect. So if it make sense financially, do it and don't worry about the temporary (and probably relatively small) hit to your score. Unless, that is, you are planning on applying for a mortgage soon and you need to have your score maxed out at that point.
The vast majority of LOC's report as revolving.
Yes, in that case maxxing one out is the same as maxxing out a credit card, but the devil is in the reporting details as you state.
