Tapping your equity with a Home Equity Line of Credit

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Does opening a Heloc with high limit affect FICO score?

larry · Joined: 27 Jun 2007 Posts: 2966 413.98 Dollars($)

Hi Archie,

Welcome to the forum.

I don't think that a opening a high limit HELOC affect your score. Instead if you can make the payments on time regularly then it can help you to increase your credit score.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Samantha

Heloc being a revolving debt, when the credit bureaus calculate your credit score, they'll consider the ratio between your outstanding debt and available credit, not how much of credit is available to you.

If you can maintain a debt to available credit ratio of 25% or even lower, your score would remain unaffected. Beyond this ratio, there may be a negative influence on your score.

Hope this helps...

God bless you.

Samantha

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