When it’s time to tap the equity in your home, you usually have two options: a home equity line of credit (HELOC) or a home equity installment loan (HEIL). Both will get you the money you want, but one may lower your credit scores, which will make everything you buy on credit more expensive – be careful.
So, which one is dangerous and which one is safe? A HELOC can potentially lower your credit scores. Here’s how. HELOC accounts can look exactly like a credit card account on your credit reports, and that can be a bad thing