Personal Line Of Credit

[Cory88]

I have a Personal Line Of Credit with PenFed. If I use the whole line does that have a big impact on a credit score like a credit card would have? Reps tell me no because it's scored differently like a HELOC is.

[dragontears]

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@Cory88 wrote:

I have a Personal Line Of Credit with PenFed. If I use the whole line does that have a big impact on a credit score like a credit card would have? Reps tell me no because it's scored differently like a HELOC is.

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It depends on how it is coded on your reports. For example, US bank has 2 types of LOC, one reports as a loan (RLOC) and one report as a revolving line (PLOC). Only the PLOC effect credit card utilization. 

I do not have a LOC with PenFed so can not say for sure but I seem to recall that it is treated like a revolving line just like a credit card. 

[M_Smart007]

I am pretty sure that it is treated like a revolving LOC / Credit card.

[Anonymous]

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@dragontears wrote:

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@Cory88 wrote:

I have a Personal Line Of Credit with PenFed. If I use the whole line does that have a big impact on a credit score like a credit card would have? Reps tell me no because it's scored differently like a HELOC is.

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It depends on how it is coded on your reports. For example, US bank has 2 types of LOC, one reports as a loan (RLOC) and one report as a revolving line (PLOC). Only the PLOC effect credit card utilization. 

I do not have a LOC with PenFed so can not say for sure but I seem to recall that it is treated like a revolving line just like a credit card. 

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Exactly.  The LOC from PenFed is exactly like a credit card.  It's shown as a revolving credit line and is scored the same.  So if you have high utilization on the credit line it probably will affect your score.  How much is impossible to know as your overall utilization and other factors play a large part.  As an aside, never ask or listen to a rep from a financial institution about credit scoring.  99% have no clue and will tell you anything.

[HeavenOhio]

For utilization purposes, anything that's revolving should count. A maxed LOC wouldn't be pretty, but a balance of zero would be an account without a positive balance.

However, because of other possible quirks, it's not recommended that you use a line of credit as your AZEO "card." If you're doing AZEO, the LOC balance should be zero with your tiny balance on a major card.

[SouthJamaica]

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@Cory88 wrote:

I have a Personal Line Of Credit with PenFed. If I use the whole line does that have a big impact on a credit score like a credit card would have? Reps tell me no because it's scored differently like a HELOC is.

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The reps gave you false information. It's treated just like a credit card, and a maxed out PLOC is as bad as a maxed out credit card.