How will a new HELOC affect score?

Discussion in 'Credit Talk' started by Slavic, Sep 8, 2003.

  1. Slavic

    Slavic Well-Known Member

    How will a new HELOC affect the credit score? When playing with the Identity Guard credit analyzer adding a mortgage or several mortgages didn't change the score significantly. Intention is to apply for several credit cards once the HELOC is secured. If HELOC will decrease the score it might be better to apply prior to HELOC hitting the report.
  2. Amy B

    Amy B Well-Known Member

    Your HELOC should report as revolving, if it is a line of credit. Even though I think EQ shows "home equity" in the notes of that tradeline, they ALL report as revolving, as if it's a great big credit card. When mine first hit it didn't significantly affect my scores, except the experian fako which jumped like 70 points because of the high limit. But like with any revolving, especially because it was new, when I revolved a balance my score did go down. Mortgages report as installment loans, so they don't affect your scores as much....I think the first one helps, after that they are only bad if you're late lol.

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