Can I improve my credit score with a home equity loan?
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Is it a good idea to improve my credit score by taking home equity loan in order pay off credit cards debt?
It’s the worst idea ever!
So you intend to risk your home for something like credit score?
Sure, good credit is important. Reducing your utilization ratio below 35% should improve your score by 50-100 points, depending on what other negative stuff you have on your report.
But then what? How do you intend to pay back that loan? Borrow from your credit card?
Default on credit cards and you get bad credit. Default on that home equity loan and you lose your home. You do understand that if you won’t pay back the loan, the bank will come after your home, right?
If you want to improve your credit score, figure out how to pay off those debts.
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