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HELOC Impact On Credit Score

Thursday, September 12, 2013 - 10:40 AM

HELOC does not impact FICO in terms of utilization ratio:

 "The utilization rate only applies to credit cards. HELOCs aren't considered revolving accounts by FICO, even if they look like them on a credit report, says Anthony Sprauve, spokesman for, the consumer education division of FICO."

However, HELOC payment does impact FICO in terms of payment record:

"Your payment history on a HELOC definitely plays a role in your FICO credit score, Sprauve says. The good news is that you are making payments; and that accounts for 35 percent of your credit score. The fact that you're making two payments per month doesn't help or hurt your credit score, as long as you're making the minimum payment on time every month. That goes for all loans."
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
1. Thursday, September 12, 2013 - 11:33 AM
My credit score is 819. I only have credit cards that I pay off each month. My comments on the site are to take on another type of loan to raise my credit score. I have no debt. So a mtg or auto loan or something has to count. 
Ally6770Ally6770942 posts since
Jan 16, 2010
Rep Points: 2,741
2. Monday, October 7, 2013 - 7:48 AM
The good news is this…the law and the credit bureaus are on your side. I know that might sound crazy to read but it’s 100% true.
scorecomparisonscorecomparison3 posts since
Oct 5, 2013
Rep Points: 5