Is an Unused Line of Credit Hurting Your Score?
Does an unused line of credit hurt your Canadian credit score? Learn the truth and best practices for managing it.
A line of credit (LOC) can help your credit profile.
✅ The Truth
- Unused LOC improves utilization by raising available credit.
- Builds history if left open.
- Risk: lender may close it unexpectedly.
⚠️ Best Practices
- Keep it open, use lightly, pay off quickly.
- Avoid maxing out balances.
📌 Takeaway
👉 An unused LOC usually helps, not hurts. Keep it open and managed.
