Wednesday, May 26, 2010

HELOC vs. HELOAN on a credit report?

Can someone tell me if there is a difference in the way a HELOC %26amp; a HELOAN impact your credit score???

On the surface they look the same but a HELOC is a revolving line of credit, so do the 3 bureau%26#039;s factor that into your revolving credit balance vs. limit ratio???

Ex. $50k HELOAN vs $50k credit line with a balance of $50k...

HELOC vs. HELOAN on a credit report?

The HELOC maybe potentially become a negative impact on your credit report depending on the credit limit (since HELOAN does not have a limit since it%26#039;s not a revolving account). Lenders will usually look at the credit limit and how how high your balance is, and the highest balance it%26#039;s ever had. If you have a large balance vs the credit limit, then that%26#039;s a red flag.

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