Help With HELOC Question
I am closing on a preconstruction condo in December. My primary residence was bought a year ago with an 80/15/5 loan. My credit score is around 680-690. The 15 Heloc on my primary is for 27K and the balance is 24K.
My question is since I am closing on a second home in Dec. what would the effect be of increasing my Heloc to 60K. The balance owed would be less than 50% which I have heard increases your score. But will taking out this loan so close to another closing be a detriment to my score? The money would only be used as a cushion while I try to find tenants.
increasing your line limit in its self may help your credit two months later, but right away it will hit your credit because a hit will be taken on your report and it will look like your looking to get more credit. BEsides that, you have to have a lot of credit availible to you before the lender will get worried about how much credit you have. I hope I understood the question right.