Many homeowners worry that a HELOC freeze will have a negative affect on their credit. Although this is a possibility if your HELOC shows up as a revolving line credit reports, most people should not see a dramatic change.

WLNS News reports:

“For those carrying a balance, fortunately, most credit reports differentiate credit cards from HELOC draws. A HELOC’s unavailability should not have a significant effect on a credit score. To compensate for the lack of a HELOC as an emergency resource, do whatever you can to build an emergency fund with savings. Start with only $50 a week if need be, and add more when you can.”

In some cases, it is even possible to have a HELOC loan reinstated by petitioning the lender.

See Also:

How Does a HELOC Affect My Credit Score?

How to Un-Freeze a HELOC

Tags | credit report, credit score, Heloc, heloc freeze, heloc loan, home equity line of credit