What seems like a simple question is not as far as credit scores. A HELOC is not treated the same as credit cards in as the credit line versus the balance carries less weight as far as utility. You also have opened ended credit lines and closed-ended lines which are treated more like an installment loan. Equity lines are secured debt (by the property as a junior lien should there be a default), credit cards are unsecured debt (there is no concrete asset to lay claim to). Should the primary mortgage become paid in full the "junior lien" would become the primary lien subject to foreclosure of the property on default.
Adding a $300k mortgage to an otherwise good credit ranting will barely move the needle as far as scoring, having credit card debt of $100k with $300k credit lines will ding your scores a bunch (no default on either one). Vehicle loans are also secured, but many times underwater, so a 50 to 100 percent "utility" in car loans are no big deal as far as scoring.
Perfect mix is a mortgage, an installment loan and 2-3 credit cards (utility is weighed differently on each). On the other hand student loans always have a 100% utility since the balance changes but it's not open-ended (should always be decreasing). Student loans if paid on time are not much of a factor, if in default they are a factor.
I doubt the HELOC is costing you anything as far as scoring or offering anything in the way of utility, but I don't see why you would close a credit line in good standing, you might need it one day and it's "free" to leave it unused.
I have no debts, own my home and pay all my bills including credit cards off each month.
Excellent, you are saving paying any interest and building wealth without using free cash flow, however for scoring you NEED to have some debt or the scores will suffer greatly. if you carry NO balance on any credit/debt vehicle you zero out that factor as far as scoring. Credit scoring is a snapshot of calculated default risk factor on what you will do based on what you have done and are currently doing.
Credit Mix is a plus factor
History is a plus or minus factor depending on how you pay your credit obligations and for how long.
Credit usage is a plus or minus depending on how you handle available credit (max out your cards or pay on time and don't overextend)
If the percent credit mix requires 3 parts (Mortgage, Installment and credit cards) and you show $00.00 usage it can't be scored.
If your history of payments is perfect but your balances are always zero reported, they aren't scored.
If the factors are scored as "null" even though you are a perfect credit risk, your scores won't reflect that because it ignores paid loans of any type other than age of accounts which is a smaller factor.
The above is an inadequate explanation but will give you some idea (below is a basic Fico weight scale). Note that if just amount you owe = $0 that's a 30% factor that can't be scored.
- Payment history: 35%
- The amount you owe: 30%
- Length of credit history: 15%
- New credit opened: 10%
- Types of credit you have: 10%
