I took out a HELOC on my home for 10% of equity as part of an 80/10/10 during my home purchase, which was $25,700. My Fico just dropped from 740 to 660 :-( (AND THE MORTGAGE HAS NOT EVEN POSTED YET!) The reason on privacyguard was that my revolving accounts were now at 62% capacity. Is the 50% rule based off my TOTAL revolving accounts, or each specific account? Meaning, can I go get a new CC (for more available credit to relax the ratio), or do I need to get the HELOC down to 50% capacity before it makes a difference? I am concerned, because I now have no ability to refi my HELOC at a later date, or apply for a car loan, I had planned on getting a new car after the new year. As for additional info, the hard inquiries had already been posted, my FICO was actually 780 2 months ago and it dropped to 740 from all the hard inquiries. No late or missed payments. The HELOC is cosigned with the misses, 1 school loan at 15k, 1 car loan at 11k on just me, no other debt (besides the mortgage). thanks
I alwasy ASSUMED it was TOTAL OWED vs TOTAL CREDIT LIMITS Others have said the same thing... I MAXED WAL*MART STORE CARD AND LOST ONLY A FEW POINTS...I ALSO HAVE SEARS STORE CARD (WAS EMPTY)--WOULD ONLY BE AT ABOUT 30% BOTH TOGETHER
The problem with HELOC are they report as revolving and usually the amount you get is near your credit limit. Makes it appear one of your credit cards is maxed out and thus tanks your scores.
Will getting another CC help to reduce the total credit load, or is my only option to wait until the HELOC is paid down
Re: Re: HELOC dropped my FICO by 80 points! "IF" you can get some more credit cards with high limits and DON'T USE THEM...it will help with DEBT TO CREDIT LIMIT RATIO
Re: Re: HELOC dropped my FICO by 80 points! How are you gonna get the CC with the tanked score.? You see this is the purpose of FICO to stear you into a trap and keep you there so creditors and insurers can milk you for all they can.
