@RobertEG wrote:
Great suimmary, Hauling. Of particular significance to me is your distinction between a home equity loan as intallment, and a HELOC as revolving. Excellent point to keep in mind when it comes to credt scoring!
Why, thank you! But just to complicate things, if the credit limit on the HELOC is high --probably $40K+; definitely $50K+ --its util is figured as installment, not revolving. So the credit type (for mix) is revolving, but the credit type on a big one (for util) is installment. Simultaneously.
I may be the odd man out here, but in response to the OP's question; it all comes down to what his or her scores currently are, and what their future plans are where getting a mortgage or auto loan are concerned.
That extra 10 percent could make a nice difference in that regard. Most credit unions and banks offer very low interest and no inquiry types of secured loans that can be used just for this purpose. I took out a $300 loan at my workplace CU and repaid it over 6 months and only paid 12 dollars in interest over the life of the loan. While the CL isnt high, it does do a LOT to your credit score in a short amount of time, and even in the case of a manual review it still looks good to have this type of account showing on your reports.
Just my .02 cents
That extra 10 percent could make a nice difference in that regard. Most credit unions and banks offer very low interest and no inquiry types of secured loans that can be used just for this purpose. I took out a $300 loan at my workplace CU and repaid it over 6 months and only paid 12 dollars in interest over the life of the loan. While the CL isnt high, it does do a LOT to your credit score in a short amount of time, and even in the case of a manual review it still looks good to have this type of account showing on your reports.
Just my .02 cents