 TITLE: What is a Line of Credit? CONTENT: What to Do if Your Personal Line of Credit Is Closed\n----------------------------------------------------\nIn recent months, some lenders have indicated a desire to stop offering unsecured personal lines of credit. If your lender informs you it is closing your personal line of credit, you should be aware that the action could adversely affect your credit score, even if you have no outstanding balance on the LOC. That's because closure of a credit line like the closure of a credit card account, lowers your total available credit. If you have an outstanding balance on your LOC or any other revolving credit account, less available credit increases your credit utilization—the percentage of your available credit represented by your outstanding balances. Utilization greater than about 30% can cause a significant decrease in your credit score.\nIf a lender plans to close your personal LOC, you have options for replacing this source of credit, including:\n*   **Take out a new personal LOC at another financial institution.** You may be able to get a personal credit line at another financial institution. If you do so, consider keeping the new account active by using it to make a small regular monthly payment, such as a media-streaming subscription or gym membership, that you can easily pay in full each month. Doing so can prevent the new LOC from being closed due to inactivity, without running up interest charges.\n*   **Open a credit card account.** As detailed above, this won't give you the same options as a personal LOC, and the interest charges are likely to be higher, but a credit card account with a borrowing limit close to that of your closed LOC can help you cover emergency expenses. It will also increase your available credit, and may offset some of the credit score damage caused by a rise in utilization. You can find cards you may qualify for using Experian CreditMatch™, which provides offers based on your unique credit profile. END