Mix Of Accounts
The ideal credit score is made up of a combination of installment and revolving accounts and looks like this:
Mortgage Loan (Installment)
Auto Loan (Installment)
3-5 Credit Cards (Revolving)
It is important to note, that not all credit cards are created equal. Retail credit cards to stores such as Sears or Belk will not earn you as much in credit score as cards such as Visa and Mastercard.
When obtaining a Home Equity Line of Credit (HELOC) apply for a loan amount greater than $40,000. If the HELOC is greater than $40K, it will fall into the mortgage category. If the HELOC is equal to or less then $40K, it will be classified as a revolving account which will not give you as much bang for your buck… so to speak.
Maxing out your HELOC will have a negative impact on your credit score.