Jump to content

Sign in to follow this  
chuck700

Should I Close an older account for a higher limit or keep lower limit?

Recommended Posts

I currently have a $1500 PLOC with my CU. I asked for a CLI and was approved for 7k BUT the only way they increase your line is by closing the old one and opening a new one...they don't allow two PLOC's or increasing the existing line.

 

I recently went on a serious spree for, business purposes (7 new accounts) so I'm already concerned about the impact of the spree and my credit age. My oldest account is about 12 yrs old...my average is about 5.7. Is the larger credit line worth the reduction in credit age...will it hurt me a lot?

Share this post


Link to post
Share on other sites

If the PLOC is not your oldest account, go ahead and close it.

 

AAOA counts way more that AAOOA for FICO scoring, and the closed account will continue to report and be counted in your AAOA for up to 10 more years. It also will continue to age. For example, and 1 year old account closed today would be counted as 2 years old a year from now by FICO.

Share this post


Link to post
Share on other sites

Yeah, if you're needing and using the higher amount then replacing it and taking the very small point hit for the short term makes sense. Hell you already added 7 accounts why not swap this one while the damage is already done? And if they're not bumping the existing limit then tell them you want a higher limit to prevent doing this again in 2 years to get to 10-15-25K.... Just nail it down now and then you won't have to worry about it in the future.

 

Most CU's you'll see around here offer PLOC's up to 15-25K fairly easily. Maybe look into PF or NFCU if you're able to find a way into either of them. PF is easy with joining an assoc. and NFCU used to be somewhat easy with the loophole that recently closed.

Share this post


Link to post
Share on other sites

Yeah, if you're needing and using the higher amount then replacing it and taking the very small point hit for the short term makes sense. Hell you already added 7 accounts why not swap this one while the damage is already done? And if they're not bumping the existing limit then tell them you want a higher limit to prevent doing this again in 2 years to get to 10-15-25K.... Just nail it down now and then you won't have to worry about it in the future.

 

Most CU's you'll see around here offer PLOC's up to 15-25K fairly easily. Maybe look into PF or NFCU if you're able to find a way into either of them. PF is easy with joining an assoc. and NFCU used to be somewhat easy with the loophole that recently closed.

 

NASA FCU does a 25k PLOC, too (and it's cool to say "I bank with NASA" :) )

Edited by JeffeVerde

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines