Author Topic: Impact of HELOC on credit card approvals  (Read 635 times)


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Impact of HELOC on credit card approvals
« on: April 08, 2019, 04:10:12 PM »
If I were to open a home equity line of credit (HELOC) as a "just in case" source of funds, how would that impact my ability to open new credit cards?

I'm newly FIRE'd, with no mortgage, and an annual passive income in the 40K range (not including capital gains). I do a relatively modest amount of credit card/travel hacking to earn account-opening bonuses (7 cards in the past 3 years). I'm thinking of opening a HELOC to supplement those funds I have earmarked for unexpected, non-enduring expenses. However, given my relatively low post-FIRE income, I'm concerned that having an open HELOC could negatively impact my ability to open more credit cards with juicy sign-up bonuses. My credit score is in the 830's.

To be honest, I'm not sure what sort of financial armageddon would necessitate my need for a HELOC (above and beyond my already-large emergency fund), but I feel like I should pursue it out of an abundance of caution. I'm considering a BOA HELOC, which I find appealing because it appears to be fee-free. However, I need to keep it open for at least 36 months or I'll owe closing costs.