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Valued Member
Posts: 30
Registered: ‎03-01-2009
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HELOC V. Second Mortgage

Is a Heloc figured into you utilization percentage and if so would you then recommend a second mortgage instead?

Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750


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Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: HELOC V. Second Mortgage

HELOCs are usually factored in as revolving accounts. The reporting depends on the amount of the HELOC.
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Valued Member
Posts: 30
Registered: ‎03-01-2009
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Re: HELOC V. Second Mortgage

The Heloc would be about 21,000, if that makes a difference.

Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750


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Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: HELOC V. Second Mortgage

You may want to confirm over at Understanding FICO Scoring, but I believe it starts to report as an installment at $50,000. Anything below is revolving.
Valued Member
Posts: 30
Registered: ‎03-01-2009
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Re: HELOC V. Second Mortgage

So would people recommend getting a second mortgage over a HELOC?

Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750


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Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
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Re: HELOC V. Second Mortgage

I think you may have problems getting either unless you have a lot of equity.  I thought most programs were requiring 680 scores for HELOC or 2nd mortgages right now (maybe even higher) 
Valued Member
Posts: 30
Registered: ‎03-01-2009
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Re: HELOC V. Second Mortgage

Our credit union will do it at 650 and when my equifax updates I will have the two most important ones in the 650's I hope.

Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750


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Regular Contributor
Posts: 158
Registered: ‎07-16-2007
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Re: HELOC V. Second Mortgage

650 for HELOC or 2nd or both. A HELOC reports as resolving under 50k, although I remember some people saying that TU may report it as installment. Do a search on here for HELOC to be sure, but I thought one of the CRAs reported it different. A 2nd might be a better interest rate, but you don't have the LOC convenience.
EX. 780 TU 794.
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