Helocs and your credit

[Rich Hupper]

Hello bp

I know a heloc functions very similar to a credit card however what happens when you use over 80% of your total line and only pay the minimum payment. Will this adversely affect your credit score?

[Cary F.]

Indeed, a higher utilization means a credit score that will trend lower. I believe the optimal utilization for consumer loans is about 20 - 30%.

So the big question is, how high do you need your credit score to be? PM me if you want to discuss further. I work in consumer lending analytics.

Cheers.