Personal Finance

Tips on Closing unused Line Of Credit with the Bank.

  • Last Updated:
  • Oct 24th, 2019 3:01 pm
[OP]
Penalty Box
Jun 24, 2015
4827 posts
1441 upvotes
0 downvotes

Tips on Closing unused Line Of Credit with the Bank.

So years back I opened a Lien of Credit with the bank, I was planning to use the money for some small projects and hobbies and hope to make money, things changed, someone close to me died, the recession happened, i got busy, I did not start the side business like i wanted to and moved on, and i changed banks but never closed it, its there but i never withdrew any money so im not being charged, what happens if I close it? will ti affect my credit rating at all? is it okay to keep it open for a rainy day? i probably would not need it ever. im doing much better now after recovering from the recession 10 years ago
Hi
10 replies
Sr. Member
Dec 22, 2007
764 posts
398 upvotes
Mississauga
if it costs nothing just keep never know when a time comes and you need it especially if unplanned
Deal Addict
User avatar
Jan 2, 2012
3702 posts
2657 upvotes
KINGSTON,ON
If you never used it, and you no longer bank with that institution, chances are it's in a dormant state, or has been closed entirely.
Deal Addict
Nov 8, 2017
1528 posts
852 upvotes
I just tell them (the bank)I want to close my PLOC

Never had a problem
[OP]
Penalty Box
Jun 24, 2015
4827 posts
1441 upvotes
0 downvotes
does it affect my credit score? cus that is a problem if it does impact it
Hi
Deal Addict
Nov 8, 2017
1528 posts
852 upvotes
GoodFellaz wrote: does it affect my credit score? cus that is a problem if it does impact it
depends

If you have a lot of debt on revolving credit lines eating into the credit available, then yes

If you have no debt, won't mean a thing
Jr. Member
Feb 20, 2009
136 posts
69 upvotes
GoodFellaz wrote: i have no debt
In that case, keeping it open may improve your credit score as it decreases your credit-utilisation ratio.
Deal Addict
Nov 8, 2017
1528 posts
852 upvotes
ddjxie wrote: In that case, keeping it open may improve your credit score as it decreases your credit-utilisation ratio.
He has no debt, so no credit-utilisation.
Meaning he's not utilizing any credit.
Lol
Jr. Member
Feb 20, 2009
136 posts
69 upvotes
User455957 wrote: He has no debt, so no credit-utilisation.
Meaning he's not utilizing any credit.
Lol
If he makes use of any credit, such as a credit card (even if he pays the balance in full every cycle), keeping the line of credit open would help with his credit score.

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