My current FICO is 814. I have one mortgage (113,000 in equity), one car payment with 3.5 years remaining, and one credit card (paid off monthly). I would like to do some home repairs totalling about 8 - 10K and am considering either a HELOC or HEL. At the very least I don't want my FICO to drop, and hoping it might even get better by taking on some very containable debt. Any suggestions on whether a HELOC or HEL would be better from the perspective of affecting my credit score? Why? Thanks!
Thanks for this info. I assume, when you say 'change', you mean a decreased score. I've seen some simulators that actually increase my score for a hel of 10k. A mystery to me why this would be so.
As for cash-out refi, I just did that a month ago to get a better rate and pay off a higher-rate cc debt at the same time. If I understand what I've read correctly, applying for a HEL so soon after a refi may also ding me? I wonder how long I'd have to wait to avoid that ding....
heloc is revolving
hel is installmant
i would think that if you got a heloc, you wouldn't want to max it out.....
if you have the option, you can get the heloc and then convert it to a installment account once you are done drawing off of it.