Unsecure LOC

[fl4wless]

about 6 months back (2 years after graduation) rbc closed my student loc on me. Anyway im thinking would be a good idea to obtain another one to have access to funds for an emergency.

Just wondering if say i got a 10-20k unsecure personal loc, how does it effect your credit rating when your balance is 0? i know debt ratio plays a big role, but does a 0% debt ratio when you have available credit raise your credit score, or would 10% be better? Obviously im not going to take out money unless its needed, and likely it wont be, but just curious....

thanks.

[Jucius Maximus]

Just wondering if say i got a 10-20k unsecure personal loc, how does it effect your credit rating when your balance is 0? i know debt ratio plays a big role, but does a 0% debt ratio when you have available credit raise your credit score, or would 10% be better? Obviously im not going to take out money unless its needed, and likely it wont be, but just curious....

It depends on what the lender is looking for.

In some cases it can hurt you because if you are applying for a mortgage or something, some institutions will assume you are fully drawn on all your credit as a worst case scenario.

[brunes]

I think you mean an unsecured line of credit.

An unsecure line of credit... sounds scary

[fl4wless]

It depends on what the lender is looking for.

In some cases it can hurt you because if you are applying for a mortgage or something, some institutions will assume you are fully drawn on all your credit as a worst case scenario.

Okay...but how does it effect your beacon?

And yes, sorry, meant Unsecured

[Thalo]

The hard hit on your bureau hits it slightly. What hurts it more is if you draw down the ULOC to more than half of its limit. What hurts it even more is if you don't make payments.

[grant]

Some banks will consider the minimum payment on a fully used LOC as part of your monthly expenses. Others will only look at the current balance, i.e., $0.

That's if it shows up on your credit report, which often is not the case.

Stop being so paranoid about your credit score.

If you're not willing to rely on your good credit history to get a LOC, then what the heck do you plan to use it for??

[acanaman]

Which banks provide LOC's or HELOC's that do not report them to equifax/transuion? I know my HELOC with CIBC is reported.

[Hellfire]

Which banks provide LOC's or HELOC's that do not report them to equifax/transuion? I know my HELOC with CIBC is reported.

None... all LOCs and HELOCs are reported.

[acanaman]

That's what I thought.

[grant]

None... all LOCs and HELOCs are reported.

My HSBC HELOC did not appear on my credit reports.

[Hellfire]

My HSBC HELOC did not appear on my credit reports.

Have you had it for a while? Or is it new?

[acanaman]

My HSBC HELOC did not appear on my credit reports.

Is your HSB HELOC with HSBC Bank or HSBC Finance?