Credit Cards Center Credit cards from our partners
New Visitor
Posts: 1
Registered: ‎03-16-2007

Credit cards vs HELOC

I have two credit cards that are near their credit limits, which I know hurts my FICO score. If I pay off my credit cards with a home equity loan, does that help, hurt, or not affect my score?
Posts: 10
Registered: ‎03-08-2007

It'll most likely help. Opening a new installment loan ma...

It'll most likely help. Opening a new installment loan may lower your scores a bit, but paying down credit cards---especially if lowering them from above 50% to below 50% their credit line (exception: Capital One cards which you'll need to lower below 50% the highest you ever charged on it in any given month)---will raise your scores and likely raise them more than they'd lower by having a new installment loan on file.
Plus, over the long haul, the installment loan will help your FICO.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on 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.