01-29-2013 05:53 AM
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!
01-29-2013 06:23 AM
01-30-2013 01:13 PM
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....
01-30-2013 02:22 PM
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.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.