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PLOC for Score Bump?

mtnbikeman
Established Member

PLOC for Score Bump?

Hi all quick question,

 

Is it worth getting a small personal line of credit? My CU can use an earlier pull so there would be no INQ just a new account. I don't need one for utilization or even budget purposes, my sole interest would be if that it counts as a different "account type" so my question is, does it count differently than a credit card and help boost score? Or would it only help with overall utilization?

Rebuilding post Chapter 7, Closed 7/12/21
Message 1 of 21
20 REPLIES 20
FireMedic1
Super Contributor

Re: PLOC for Score Bump?

It only helps if you have no other installment loans like home,auto, ect. Loan util doesnt affect revolving credit util %'s individual or aggregate. Whos the CU you posting about?





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 21
SouthJamaica
Mega Contributor

Re: PLOC for Score Bump?


@mtnbikeman wrote:

Hi all quick question,

 

Is it worth getting a small personal line of credit? My CU can use an earlier pull so there would be no INQ just a new account. I don't need one for utilization or even budget purposes, my sole interest would be if that it counts as a different "account type" so my question is, does it count differently than a credit card and help boost score? Or would it only help with overall utilization?


I do not know whether it helps your credit mix or not.

 

But I'm pretty certain that whatever points you gain will be outweighed by those you lose from inquiry, resetting AoYA, and lowering AAoA.

 

So my advice would be not to add it. 

 

As a general rule, I would advise people not to add credit accounts they don't need.


Total revolving limits 689000 (587000 reporting) FICO 8: EQ 715 TU 712 EX 695

Message 3 of 21
HeavenOhio
Community Leader
Senior Contributor

Re: PLOC for Score Bump?

My understanding is that a PLOC is a revolving account.

Message 4 of 21
Junejer
Moderator Emeritus

Re: PLOC for Score Bump?


@HeavenOhio wrote:

My understanding is that a PLOC is a revolving account.


Someone who has a PLOC can chime in on whether it is included in util or not. As for my HELOC, it is listed with my CCs, however the util is not included in my revolving util. I'm not sure when a LOC might be included and when it won't be included in util (maybe size of LOC?).






Starting Score: 469
Current Score: 817
Goal Score: 825

Take the myFICO Fitness Challenge
Message 5 of 21
SouthJamaica
Mega Contributor

Re: PLOC for Score Bump?


@HeavenOhio wrote:

My understanding is that a PLOC is a revolving account.


Oh it definitely is. And in utilization it's scored the same way as a credit card.

 

But the credit reports do separate the "lines of credit" from the credit cards.


Total revolving limits 689000 (587000 reporting) FICO 8: EQ 715 TU 712 EX 695

Message 6 of 21
SouthJamaica
Mega Contributor

Re: PLOC for Score Bump?


@Junejer wrote:

@HeavenOhio wrote:

My understanding is that a PLOC is a revolving account.


Someone who has a PLOC can chime in on whether it is included in util or not.

 

It absolutely is.

 

As for my HELOC, it is listed with my CCs, however the util is not included in my revolving util. I'm not sure when a LOC might be included and when it won't be included in util (maybe size of LOC?).


 


Total revolving limits 689000 (587000 reporting) FICO 8: EQ 715 TU 712 EX 695

Message 7 of 21
FireMedic1
Super Contributor

Re: PLOC for Score Bump?

"Because it's an installment loan, a personal loan doesn't factor into your credit utilization ratio, which measures how much of your available revolving credit you're using. Using a personal loan to pay off revolving credit, such as credit card debt, can help you improve your credit scores by replacing revolving debt (which factors into your credit utilization ratio) with an installment loan (which doesn't)."

https://www.experian.com/blogs/ask-experian/how-does-a-personal-loan-impact-your-credit/ 





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 8 of 21
Junejer
Moderator Emeritus

Re: PLOC for Score Bump?


@FireMedic1 wrote:

"Because it's an installment loan, a personal loan doesn't factor into your credit utilization ratio, which measures how much of your available revolving credit you're using. Using a personal loan to pay off revolving credit, such as credit card debt, can help you improve your credit scores by replacing revolving debt (which factors into your credit utilization ratio) with an installment loan (which doesn't)."

https://www.experian.com/blogs/ask-experian/how-does-a-personal-loan-impact-your-credit/ 


A personal loan is different from a personal line of credit though.






Starting Score: 469
Current Score: 817
Goal Score: 825

Take the myFICO Fitness Challenge
Message 9 of 21
SouthJamaica
Mega Contributor

Re: PLOC for Score Bump?


@FireMedic1 wrote:

"Because it's an installment loan, a personal loan doesn't factor into your credit utilization ratio, which measures how much of your available revolving credit you're using. Using a personal loan to pay off revolving credit, such as credit card debt, can help you improve your credit scores by replacing revolving debt (which factors into your credit utilization ratio) with an installment loan (which doesn't)."

https://www.experian.com/blogs/ask-experian/how-does-a-personal-loan-impact-your-credit/ 


That is about personal installment loans, not personal lines of credit.


Total revolving limits 689000 (587000 reporting) FICO 8: EQ 715 TU 712 EX 695

Message 10 of 21
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