https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-cards-vs-HELOC/m-p/361#M155 <DIV>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.</DIV><DIV>&nbsp;</DIV><DIV>Plus, over the long haul, the installment loan will help your FICO.</DIV><DIV>&nbsp;</DIV> Fri, 16 Mar 2007 20:37:09 GMT Anonymous 2007-03-16T20:37:09Z https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-cards-vs-HELOC/m-p/359#M153 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? Fri, 16 Mar 2007 20:02:39 GMT https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-cards-vs-HELOC/m-p/359#M153 Anonymous 2007-03-16T20:02:39Z https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-cards-vs-HELOC/m-p/361#M155 <DIV>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.</DIV><DIV>&nbsp;</DIV><DIV>Plus, over the long haul, the installment loan will help your FICO.</DIV><DIV>&nbsp;</DIV> Fri, 16 Mar 2007 20:37:09 GMT https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-cards-vs-HELOC/m-p/361#M155 Anonymous 2007-03-16T20:37:09Z