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?
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.