Valued Member
Christy0828
Posts: 30
Registered: ‎03-01-2009
HELOC V. Second Mortgage

‎03-09-2009 10:59 AM

Is a Heloc figured into you utilization percentage and if so would you then recommend a second mortgage instead?
Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750

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llecs
Posts: 31,961
Registered: ‎08-04-2007
Re: HELOC V. Second Mortgage

‎03-09-2009 11:06 AM

HELOCs are usually factored in as revolving accounts. The reporting depends on the amount of the HELOC.
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Valued Member
Christy0828
Posts: 30
Registered: ‎03-01-2009
Re: HELOC V. Second Mortgage

‎03-09-2009 11:28 AM

The Heloc would be about 21,000, if that makes a difference.
Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750

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llecs
Posts: 31,961
Registered: ‎08-04-2007
Re: HELOC V. Second Mortgage

‎03-09-2009 11:48 AM

You may want to confirm over at Understanding FICO Scoring, but I believe it starts to report as an installment at $50,000. Anything below is revolving.
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Valued Member
Christy0828
Posts: 30
Registered: ‎03-01-2009
Re: HELOC V. Second Mortgage

‎03-09-2009 01:03 PM

So would people recommend getting a second mortgage over a HELOC?
Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750

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mickie08
Posts: 3,299
Registered: ‎04-22-2008
Re: HELOC V. Second Mortgage

‎03-09-2009 02:18 PM

I think you may have problems getting either unless you have a lot of equity.  I thought most programs were requiring 680 scores for HELOC or 2nd mortgages right now (maybe even higher) 
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Valued Member
Christy0828
Posts: 30
Registered: ‎03-01-2009
Re: HELOC V. Second Mortgage

‎03-09-2009 02:52 PM

Our credit union will do it at 650 and when my equifax updates I will have the two most important ones in the 650's I hope.
Starting Score: 540 (EQ 10/2008) 565 (TU 10/2008) 558 (EX 10/2008)
Current Score: 670 (EQ 04/2010) 668 (TU 02/2010) 752 (02/2010 Quizzle)
Goal Score: 750

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Regular Contributor
ronq
Posts: 157
Registered: ‎07-16-2007
Re: HELOC V. Second Mortgage

‎03-10-2009 05:04 PM

650 for HELOC or 2nd or both. A HELOC reports as resolving under 50k, although I remember some people saying that TU may report it as installment. Do a search on here for HELOC to be sure, but I thought one of the CRAs reported it different. A 2nd might be a better interest rate, but you don't have the LOC convenience.
EX. 780 TU 794.
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