Can A Fixed Home Equity Loan Drop My Credit Score?
I requested $ 10,000-dollar domicile equity loan up to the roof of my house.
My FICO score was approximately 780 by Parade, when I make an application for a home equity loan at a fixed weight rate. Now my FICO score is 740th is What happened? I am never belated on payments. I do not pay more than the minimum amount on my card every occasion.
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There are a number of factors that go in to the scoring model and on time payments is a major one, but not the only one.
Having a new account can be a risk factor all by itself. Since it is a closed end loan, the balance is near the limit and it has probably only just started reporting.
I wouldn’t freak out or anything. A 740 is still pretty darn good. My scores boucne around with little rhyme or reason.
Sometimes opening a new account can have a positive affect. I went to Home Depot to buy $300 worth of windows and walked out with 20K in new credit. Having the additional available credit had a very favorable affect on my scores. I don’t have to use the credit if I don’t need to.
Also, if you have a balance on a credit card that is more than 50% of the limit, you may want to pay it down or transfer some of the balance to another account so that none of your balances are over 50% of the limits.
Again, a 740 is a great score so you really don’t need to be worried about anything and it will probably go back up in a month or two once the new loan is a little more seasoned.
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