Hi been working hard to finally get my credit up to almost excellenet range..only a few more points
My husband would like to take out a home equity line of credit as we have some needed home repairs to do..We do not plan on doing huge amounts at a time..say 2000 drawn at a time and then pay off quick as it is at 4 percent interest right now..he said he just wants to take 10000 but thought it would be better to have higher line of credit to keep util down . Is it similar to credit card utilization? so say if we did 25000 we would maybe benefit on our credit scores if we only draw only up to 2500 at a time to keep at 10 percent? gee maybe better to have even higher line in case we have to spend a little more..i just dont want to hurt our scores..thank you for any feedback.
@fritscher wrote:Hi been working hard to finally get my credit up to almost excellenet range..only a few more points
HELOC's tend to UW at a much lower FICO score for best rates than traditional mortgages. My EQ FICO 5 (the Equifax mortgage score) is only 693, which everyone will tell you ain't exactly optimal in conventional mortgage land, but I qualified for the best APR from DCU's absolutely excellent HELOC product for example.
As far as FICO dings go, other than possible new account I've seen absolutely zero: my 27K credit line HELOC is simply not counting as revolving, at all, on every FICO algorithm implemented in the last 14 or so years. If I needed to max it out I wouldn't be worried about it.
