Credit score

[tyler1980]

Originally Posted by breitlings

so does taking out a heloc than paying off the mortgage avtually work. ive been told do it and Ive been told lots of work for almost no benefit

technically a heloc should work positively toward your score vs a CC ... heloc are not counted the same way as revolving debt as far as credit usage ratios. 10k on a credit card with a 20k limit and you are using 50% of available credit and that is BAD, BAD, BAD. That isnt applicable to a heloc. So any usage isnt part of the ratio.

I wouldn't do it for the purpose of raising your score, but if you are going to incur debt its better than a CC and a lower APR. I prefer unsecured debt though.

Not sure in your example how it would help having a heloc instead of a mortgage as they are basically reported the same way.