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Re: Paying off debts without hurting credit
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Posted by WHY CHAT (12.78.12.176) on December 31, 2003 at 09:20:34:
In Reply to: Re: Paying off debts without hurting credit posted by observer on December 31, 2003 at 08:24:05:
Your LOC will report as a revolving account for the full amount of your credit line that you take out. It MAY affect your scores BADLY if you utilize the FULL amount available.Your scores are affected not only by how you pay, and what your balances are on any accounts, but by your utilization on any one account. So if you had,for instance 3 accounts with a $2,000 credit limit each, and you owed $1,000 on each,(50% utilization) and obtained a LOC for $4,000 and used $3,000 to pay off the 3 accounts. You would then have a 75% utilization on your LOC which would adversely affect your scores.
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