Home Equity Loan
If I increase the amount of a home equity credit line but never use it, does it still affect my credit rating?
Line of credit currently at $60,000, but want to increase to $150,000 just in case I ever need it. If I never really use it, does it still affect my credit rating?
Public Comments
- If you don't use the loan and manage your money, I think the increased amount can work against you. The credit companies measure your income/or worth against the total credit you are carrying. If you are carrying more credit than you can afford, you are a higher risk. If, on the other hand, you have plenty of income to handle such a high loan, it probably will have no affect until you use it.
- If you increase it, it's like a credit card, In that it's available ,spending money and a potential debt. So yes it can adversely affect your credit,
- yes, even though you don't use it, it is available, and lenders see it could be used at anytime and will take it into consideration
