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Stompy · 12-22-2004, 01:01 PM

I went and applied for a Home Equity line of credit the other day and got approved.

I originally wanted a loan, but the woman said to me that the line of credit was better because interest was based off of prime.

So then I asked her, "Well, if I use up the max of the line of credit, then won't that hurt my score since you aren't really supposed to use more than 50%?" She said, "No, because it's no the same as a credit card."

However, my friend here is telling me that it WOULD hurt my score.

So... any idea which it is? I'm using the line of credit to buy a new car since I can write the interest off on my taxes, so the whole amount will be used up immediately.

12-22-2004, 01:01 PM	#1 (permalink)
Stompy Banned from being Banned Location: Donkey	HELOC same rules as standard credit? I went and applied for a Home Equity line of credit the other day and got approved. I originally wanted a loan, but the woman said to me that the line of credit was better because interest was based off of prime. So then I asked her, "Well, if I use up the max of the line of credit, then won't that hurt my score since you aren't really supposed to use more than 50%?" She said, "No, because it's no the same as a credit card." However, my friend here is telling me that it WOULD hurt my score. So... any idea which it is? I'm using the line of credit to buy a new car since I can write the interest off on my taxes, so the whole amount will be used up immediately. __________________ I love lamp.