Does it affect your credit score if the available credit in your HELOC is reduced?

I just received a notice from my bank that the amount of credit in my HELOC has been reduced. This is because home values in our area have gone down--we have never been late on a payment. Does this affect my credit score in any way?|||The utilization rate can effect your score. Higher utilization - bad, lower utilization - good.


That being said most utilization calcs are based on revolving credit, not mortgages or home equity loans. And a lot of home equity lenders report high balance, not credit line. And the ability access the line is not always clear cut, ie some draw periods may expire, or the customer may flip the loan into a paydown mode.


I would not worry about it.


a%26gt;|||It can change your credit score. It does depend on the amount that you have borrowed against the HELOC. The closer the balance is to the limit, the worse the credit score is hit.|||probably - it's th same concept as using too much of your credit card limit - the higher percent of you limit, the lower your score will be