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Question By
izzyfoshizzy

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Should I open a custom credit line with Citibank?
I'm trying to determine if I should apply for a custom credit line with Citibank. I have excellent credit and I don't plan on ever using the funds. But I find it appealing to have a credit line set up just in case. I'm wondering if this would have a negative impact on my credit score.

The application would require a hard pull on my credit. Also, I'm not sure how the average age of history is calculated exactly so I don't know if opening a new account like this would drastically reduce the "average" age of my accounts (I'm 28 so it's not like I have decades of history).

In the long run, I'm assuming it would positively impact my score because my utilization would decrease since I do not plan on using this line of credit.

I'd love to hear any advice or input on this as I'm really struggling to find information to make the right decision. Thanks!

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Top Contributor
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hard pull vs credit utilization

a hard pull affects the credit for a year.  It's usually just a couple points, but applying for a student loan dropped my credit score by 20pts, so it varies.  It will also reduce the average of accounts, usually not by much.  If it helps keep your utilization under 30%, it could be really helpful overall, though.  It's up to you, if your utilaztion % is not that bad, it'll probably just do more harm than good.

Reply by
izzyfoshizzy

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Thanks for your reply! My utilization is already pretty low but it would go even lower so there may be a benefit there. Even if my score is not going to experience a huge positive difference, I'd still lean towards getting the line of credit simply because it's a source of funds in the case of an emergency. I just want to make sure I won't be negatively impacted by something I didn't expect, like a large decrease in average of accounts or the hard pull, etc.

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