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Using HELOC to pay down credit card debt to under 50% of available card balances

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Anonymous
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Using HELOC to pay down credit card debt to under 50% of available card balances

Is this a good idea, even if it takes the balance of the HELOC over 50% of available amount?  Trying to increase score in short time. 
Message 1 of 5
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Anonymous
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Re: Using HELOC to pay down credit card debt to under 50% of available card balances

What is the CL on the HELOC ?
 
What is the risk of falling behind?
 
How many open accounts, how many with balances.

denim wrote:
Is this a good idea, even if it takes the balance of the HELOC over 50% of available amount?  Trying to increase score in short time. 



Message 2 of 5
Anonymous
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Re: Using HELOC to pay down credit card debt to under 50% of available card balances

CL is 65K.  I have used 32K.  I want to pay a card down below 50% utilized which would mean I have to use another $2K from the line to do so.  Interest on cc is 23%!!! Interest on HELOC is 6.5%.  Almost worth paying it all off but not sure of the impact on my score it I advance my HELOC another $7K.  I have about 3 other cards with balances below 50% utilization but CL's are not very high. Do each of the bureau's count it differently?
Message 3 of 5
haulingthescoreup
Moderator Emerita

Re: Using HELOC to pay down credit card debt to under 50% of available card balances

Since your HELOC is over $50K CL, it's being calculated as mortgage by all three bureaus, so going over 50% is not really a scoring issue, although it might be an internal watch-point that you set for yourself.

I would kill off the balance on the 23% card with the HELOC, as long as you really, really know that you will apply the payments you've been making on the CC to the HELOC to quickly knock it back down. Alternatively, use the payments to start killing off the other cards.

Ideally, in the end, 3 cards will have $0 balances, and the other report a small balance. Use the cards all through the month as long as you can pay them off easily by statement time. I think of my cards as debit cards, which keeps me from charging things that I can't immediately pay off.

The only exceptions for me are home improvement items and my last kid's college tuition. On anything else, if I can't wipe it off within a month, I don't get it.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 5
Anonymous
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Re: Using HELOC to pay down credit card debt to under 50% of available card balances

Thank you! I'm hoping to gain 25 points in the next 3 months.  I'll be shopping for a mortgage and need my score to be higher.
Message 5 of 5
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