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.

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