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lorensr

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Does a personal line of credit count as different from a credit card?
Your score is supposed to improve when you have different types of accounts. A personal line of credit is similar to a card in that it is revolving, not installment, credit. Is it viewed as the same type of credit as a card for the diversification part of your score?

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It's the same as a C.C. on your reports

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With a line of credit, it is still listed as 'revolving credit', the same as credit cards, on your credit reports. It doesn't really 'diversify' your credit accounts.  The only diversification that they look at are revolving credit (credit cards), installment loans (auto, home, or student loans). Adding a line of credit will only add to your revolving credit.

Be careful though. With a line of credit, once you use any of that money, the interest accrues immediately on the day and everyday after that, once you take it out. It is different from credit cards. With c.c's, you only get charged interest when you carry a balance over to the next month.

The only reason you would want a line of credit is if you don't have an emergency fund. Otherwise, you really don't need it and it won't help you much on your credit reports.

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