I recently opened up a HELOC to help cover some home renovations we've been putting off forever. Everything seemed pretty straightforward, and honestly, I didn't think much about the credit score side of things. But then I checked my credit report yesterday and saw it dropped by like 25 points! Um, wasn't expecting that.
I mean, I get that opening new credit lines can affect your score temporarily, but I didn't think it'd be this noticeable. Now I'm wondering how long it'll take to bounce back or if there's something else going on here. Has anyone else had their score drop significantly after opening a HELOC? Curious if this is normal or if maybe I should be worried about something else...
"I mean, I get that opening new credit lines can affect your score temporarily, but I didn't think it'd be this noticeable."
Honestly, 25 points isn't too unusual. When I opened my HELOC a couple years back, mine dropped around 20 points initially. It's mostly due to the new inquiry and the sudden increase in available credit. Give it a few months of consistent payments and responsible usage, and you'll likely see it bounce back—maybe even higher than before. Just keep an eye out for anything else unusual on your report...
"Give it a few months of consistent payments and responsible usage, and you'll likely see it bounce back—maybe even higher than before."
Not sure I'd count on it bouncing back higher than before, honestly. When I got my HELOC last year, it dropped about 30 points and stayed lower for quite a bit longer than just a few months. Even with consistent payments, mine took closer to six or seven months to fully recover. It did eventually climb back up, but it didn't exactly skyrocket past my original score.
From what I've seen, a lot depends on your overall credit profile—like how many other accounts you've opened recently, your utilization rate, and the length of your credit history. If you're someone who rarely opens new credit lines, the impact might linger longer because it's a bigger change to your profile. Just something to keep in mind... everyone's mileage varies with these things.
Yeah, I think you're spot on about the credit profile thing. When I opened my HELOC, it dinged me around 25 points and took about five months to recover fully. But honestly, it never went higher than before—just back to baseline.
"Even with consistent payments, mine took closer to six or seven months to fully recover."
Makes me wonder if the size of the HELOC matters too... maybe larger lines have a bigger or longer-lasting impact?
Same here—opened a pretty hefty HELOC last year for a kitchen remodel (goodbye, avocado-green countertops...). Dropped about 20-30 points initially, took around 6 months to bounce back. Seems pretty standard from what everyone's saying. Guess patience is key here.
