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Home Equity and Refinancing
Home Buying

Could having a home equity line of credit possibly hurt your credit bureau beacon score even if you don't use it?

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Wiki User
December 11, 2005 1:02AM

Yes. In this way. Credit reporting agencies look at the total ability you have to borrow. If you have ten credit cards and have the ability to charge 75,000 tomorrow it could hurt you. If you have low debt on your credit cards [ keep them with no more than 30% of the amount you can borrow on each card ] Then it will probably not hurt you at all. I know people with large lines of credit that use them for business etc and pay it down right away and have great credit. If in other words you have a lot of debt as a percentage of your ability to put yourself in more debt it could hurt. It depends on your past credit history etc. As a side not I had a customer who was in chapter 13 for the past two years and his lowest score was 780???