Can a Home Equity Line of Credit (HELOC) impact my credit score

Q&A: Impact on Credit Scores?

QUESTION: Can a Home Equity Line of Credit (HELOC) impact my credit score? ANSWER: Credit expert Linda Ferrari (author of “THE BIG SCORE: Getting It and Keeping It, Buying Power for Life”) explains that HELOCs are commonly categorized as revolving accounts. As a result, they are rated using the “Balance to Limit” ratio scenario, which can drop a credit score by as much as 75 points if the HELOC is maxed out to the limit of the available credit line.If you or someone you know has a HELOC, Ferrari recommends sending a Certified Letter (along with a copy of the HELOC agreement) to the three credit bureaus asking them to change the type of account from “Revolving” to “Line of Credit” or “Other” which can help improve your credit score.


Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183

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