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Use HELOC or PLOC to pay down Credit cards

Established Contributor

Use HELOC or PLOC to pay down Credit cards

I am in the process of getting approved for a HELOC on my primary residence.  If I use to pay down some of my CC debt(increased recently - used 0% BT from Barlcays), will this help to improve my scores?  

 

I took a hit on my scores using my Barlcays and putting $8k on a $10k card.  

 

Thanks in advance? 

Penfed Platinum Sig Visa $33k, PenFed PLOC $25k, NFCU Cash VISA Sig 22k, NFCU Visa Flagship 22k, CAP1 Venture $23k, CAP1 Venture One $15k, NFCU NAV Check $15k, Barclays Arrival $13,2k, DCU VISA 5k, Cap1 QS 7.5k, WF Finance 3.5k, Merrick 2.2k, Barclays Apple Financing 6.1k BestBuy 5k >Ch7 BK filed 8/09; DC 01/10 EQ 636 Nov 13;
EQ08 718 | TU 731 | EXP 728
Inqs: EQ 11, TU 8, EXP 11(last 2 yrs)
Goal 750+ In the Garden til

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Valued Contributor

Re: Use HELOC or PLOC to pay down Credit cards

Having 80% Utilization is going to hurt your score without a doubt. Below 30% will help a lot. I would imagine even getting below 70% or 50% will both give you improvements over where you are now.

 

A HELOC will greatly improve your score as it will get your utilization back down on the revolving line.

 

I read a news blip on Apple News the other day that said they are starting to see an uptick in HELOC defaults. I guess the people that took out HELOCS 10 years ago are resetting from interest only to principal plus interest currently. Plan accordingly.

Message 2 of 3
Established Contributor

Re: Use HELOC or PLOC to pay down Credit cards

Thanks Appleman - yes I am aware of the dangers of using HELOC's - trying to lower monthly payments and reducing revolving CC's utilization
Penfed Platinum Sig Visa $33k, PenFed PLOC $25k, NFCU Cash VISA Sig 22k, NFCU Visa Flagship 22k, CAP1 Venture $23k, CAP1 Venture One $15k, NFCU NAV Check $15k, Barclays Arrival $13,2k, DCU VISA 5k, Cap1 QS 7.5k, WF Finance 3.5k, Merrick 2.2k, Barclays Apple Financing 6.1k BestBuy 5k >Ch7 BK filed 8/09; DC 01/10 EQ 636 Nov 13;
EQ08 718 | TU 731 | EXP 728
Inqs: EQ 11, TU 8, EXP 11(last 2 yrs)
Goal 750+ In the Garden til

Message 3 of 3
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