Open Ended Line Of Credit

I banked with a very small bank for the last 8 or 9 years. I am aggrivated because they would not approve me for a home equity loan. I think it is small town bull. I am transferring everything to chase bank. I get free checking, an open end line of credit, a bank card, computer banking and the guy was really helpful. At my old bank, you could feel them being arrogant and almost snubbing when you walk thru the door. I dont know why i am so nervous. Maybe its change or am I missing something. I work full time as a nurse and I am single.
I am leaving a small balance of like $200 in my old checking until I am sure all checks and surprises have cleared.

Don't be nervous.... all you do is write a check for the correct balance in your account... and let it sit for a month.... then go to your old bank and tell them that you are closing your account. It happens every day... and is no big deal. And if your old bank treast you that bad, think about the fact that you are now snubbing them... and it truly is THEIR loss, not yours.

2006-09-08 17:35:11 by happydawg

Find out how Wells Fargo customer Judi Henderson-Townsend uses her line of credit to take advantage of unexpected opportunities and to expand into ...

Now my question is: Does having one or two open line(s)
of credit take longer to build a credit score as against having three open credit lines? I really would like to build up my credit to say in the upper 700 before the end of this year. So, in this regard, what would you advice me to do?

Depends on where you are starting as to how long it will take you to get to the upper 700s.

However, having 3 open lines of credit managed responsibly (on-time payments, only using about 10% of the credit limit) will get you there faster than 1 or 2 credit lines. It will probably also help to have installment credit, like a car loan, a savings secured loan or a student loan. The accounts that you have will probably also need to be at least a couple of years old.

2007-06-09 12:03:52 by CREDIT ANALYST

How much open credit do I need to have positive feedback on my Credit Report? I have been researching about this question and read in an article (cannot find it) that I must have some credit lines open to show that I pay on time and that it was recommended I have a certain amount not to exceed { only that the amount that was set as an example was like 15,000 }. I have a mortgage and I have 5 credit cards a total of 5,500 credit given to me, all with a zero balance. I have recently canceled/closed 2 of the 5, the Homedepot Comsumer (1000.00) and Lowes ($700.00) because I have no use for them and they were recently opened in July 2008. So know I only have my 60,000 mortgage and 3 credit cards with a credit given to me in the amount of $3,800. I plan on using the cards but paying them off at the end of the month, just so that I don't have inactivity.

If you are paying all those accounts on time, they should all be positive. Late payments cause negatives.

It really isn't the number of open credit cards or the total available credit. It's the balances you carry. Use the cards and pay them in full every month. You'll do just fine.

2009-03-05 20:21:04 by Ana ツ

My credit scores are TU/669 EQ/656 EX/651. I have 8 open lines of credit; 2 derogatories over 2 years old. Debt to income is 4%. i have a bk that drops off end of next year. How to raise my score?

Derogs are paid off, all lines are current. Derogs are collections, and they won't delete their entries.

The derogatories won't drop off as you did incur the debt and that the debt wasn't paid at the time. This is your history, and it won't be relieved just because it was ultimately paid off. So, the report is a time line of your credit not a photograph of what you are doing now at this point in time.

All that you can fight is the accuracy of the derogatory, as does it belong to you. If you try to use a credit fix it company, all they will do is just write letters without even bothering to review your complaint. They won't even bother to do much for you, as it is in their best interests to keep you hanging.

Think I'm just being a BS artist? Check the report from a congressional committee from 2006 by the Federal Reserve Board. (And you thought that they only controlled interest rates and banks.)

2008-03-07 14:52:06 by shellanswerman

Based on my understanding mortgages are closed end loans, and line of credit or personal loans are open end loans. My question is, why don't banks or institutions allow you to borrow a 200K or what ever loan to buy a home, where the home in its purest essence is practically the collateral of the loan versus getting a closed end loan (mortgage) where amortizing are taken into account and practically the first 5 to 7 years the person borrowing to buy a home is just paying interest and the result is that practically you are buying one house for yourself and another for the bank so to speak?

On a long term loan like a mortgage, as you pointed out, a significant portion of the first payment is interest. It goes down a little with each payment, but it might be that 90 percent of the first payment is interest. So the banks, wishing to be careful and prudent, want these to be closed end loans. They don't want you borrowing a huge amount of money, based on 80 percent of the house's value, and then turning around the next week and borrowing even more, as you could do if it were open ended. They want assurance that the loan to collateral ratio will improve over time. They certainly don't want you to owe more than the house is worth, which could happen if you borrowed more or if the value of the house went down. Open ended home loans are often second loans, and have high and sometimes variable rates.

2008-02-19 11:24:48 by Stephen L