A good question I've been getting a lot from customers is...

'How does a HELOC affect my credit rating?'

Well, thanks for asking!  A HELOC with a line exceeding $50,000 would report the same as a mtg tradeline on your credit.  A HELOC with a line less than $50,000 would be treated the same as a credit card with a large line.  Which means if you're total credit balances exceed 30% of the total available credit, it will have a negative impact on your credit.

With market conditions the way they are, lenders are shrinking customer HELOC lines or in some cases completely closing them out.  Why do I mention this?  Well, let's say Joe Blow has a HELOC of $65,000 with a balance of $10,000 and his lender decides to shrink his line down to his balance owed.  Now, Joe has a maxed out credit line, and it will now drop his score.  If he had zero balance, then there would be no negative impact.

If you have prospects that have negative items on thier credit be sure to sign up for our broker program http://www.ConvertTurnDowns.com and start building a more solid pipeline.  We average over 45% removal in the first 45 days of service!  Brokers are able to track progress of thier clients 24/7 through thier back office login, and will have a designated Account Executive for any help needed.