@Anonymous wrote:Hey fam, so i notice a lot of folks especially with PenFed getting PLOC's of certain amounts. Some big some small. My question is, what is the main purpose of PLOC and how can i benefit from one if i get qualified or pre-qualified? Also how do PLOC's work and how are they given? What are some reasons you all have gotten your and what affects have they had on your scores?
Just trying to learn, i know they say a mixture of your credit is good too.
For me it's primary value is a way to pay things that (a) don't accept credit cards, or (b) charge a service charge for credit card payments. But they're very flexible, so there are probably lots of purposes for them.
Some act as overdraft lines of credit, being tied to your checking account. Some don't.
You pay interest from the moment the money is drawn from the line of credit; no grace period like in credit card purchases.
You can just let it sit there; no need to use it or keep it active.
It shows up in scores as a revolving credit account; different bureaus have different terminology, but it shows up as a revolver, having same effect as a credit card.
@Anonymous wrote:
Ok good info, so if I leave it in my account untouched, which means carries no balance, does that do me any good score and utilization wise or? How does it benefit my credit score?
It benefits your score the same way a zero balance credit card does. It enhances utilization. It adds a zero balance account.
@ljavonna wrote:
Which bureau do unify use
In my case they used Experian.
The score model they pulled appeared to be Auto 2, but some say that it's Classic FICO 2 that Unify pulls.