I have had a $6K overdraft LOC at First Internet Bank of Indiana. Just got approved for a $25K signature line of credit at prime + 2% at first IB, for which a condition is that the ODLOC gets closed. I'm wondering if it will make a significant difference to have the ODLOC opened then closed within 4 months, then the bigger LOC opened. If so, it'd be nice to try to convert this ODLOC...then again, I'm not sure that's possible. Any knowledgable advice on this most appreicated.
Best option would be to convert the 6k loc to a 25k loc. If you have to close the old and open new, your average age of accounts will decrease some but not much since the other line was less than a year old. My guess is that it won't hurt your score much to close the other account. I have opened and closed a couple of accounts this year without losing points.
Thanks wolverine. Your educated guess is consistent with mine, and I'm glad to hear sevearl openings/closings haven't effected yours. Turns out they can't convert, but I'm not going to worry about it
