strive4credit Posted December 7, 2011 Report Share Posted December 7, 2011 What could be done with a $9,500 HELOC at 24.99%?I called the boneheads to let them know that I won't be using it unless the interest is dramatically lowered. They (HSBC) said they are making no moves on these types of accounts because of some crap. Link to comment Share on other sites More sharing options...
1stStep Posted December 7, 2011 Report Share Posted December 7, 2011 Do you owe $9,500? Or is the limit $9,500?If you don't owe anything, I'd leave it alone. Link to comment Share on other sites More sharing options...
strive4credit Posted December 8, 2011 Author Report Share Posted December 8, 2011 The limit is 9500. I had it before, used it and I came into a lump sum of money and paid what I used. It boosted my credit score, and improved my debt/income ratio. But now I am like what can I do with it. I know not to close it and these boneheads won't lower the interest rate. Wouldn't it be in their best interest to do that so I would be at least tempted to use it? Link to comment Share on other sites More sharing options...
1stStep Posted December 8, 2011 Report Share Posted December 8, 2011 Possibly...but since credit is tight in the economy, they have no incentive to lower the rate. Link to comment Share on other sites More sharing options...
jq26 Posted December 12, 2011 Report Share Posted December 12, 2011 Leave it alone. And don't use it. You seem rather logical and concerned about your credit (you are here, aren't you?), so my suggestion is to do what is obvious and dare not borrow from a home at 24.99 apr. That's absurd. I'm not a fan of HELOCS at all (your home is not a bank). but if you need the cash for a crucial reason, many HELOCS are below 4.00% right now. So apply for one that isn't geared toward subprime credit. Link to comment Share on other sites More sharing options...
Coltfan1972 Posted December 12, 2011 Report Share Posted December 12, 2011 But now I am like what can I do with it. I know not to close it and these boneheads won't lower the interest rate.Do what anybody with common sense should do when presented with a bad offer, decline it, like you have done. This is still America and a business/bank still has the right to present you with a horrible offer that will make them an obscene amount of money. You have the right to decline it. As long as there is full disclosure of the terms, what can you do? other than decline the offer. Like you said, their boneheads. However, nothing personal, but you also posted you have used it before. So they might be thinking your going to use it anyway and just trying to get a lower rate. Getting instant cash is just too tempting a lot of times, especially when you need it right then. Most likely they did not put that much thought into it and that is just the deal their offering. Link to comment Share on other sites More sharing options...
mooredb Posted December 15, 2011 Report Share Posted December 15, 2011 I agree Link to comment Share on other sites More sharing options...
strive4credit Posted December 16, 2011 Author Report Share Posted December 16, 2011 Yeah I used it...when I first got it and the rate was like 6%. My interest rate went up when I was late once (not 30 days late..no credit hit). Soon after that I paid it. And the crazy thing is I sold the house that the HELOC is on. Link to comment Share on other sites More sharing options...
jjacobs Posted December 16, 2011 Report Share Posted December 16, 2011 Yep, I agree. Even one time late payment can already pile up huge interest. I have been there, and it is not easy. Link to comment Share on other sites More sharing options...
Denita Posted December 16, 2011 Report Share Posted December 16, 2011 So this was a HELOC tied to your house and you sold the collateral, paid off the loan and the loan still shows up on your credit report as an open TL?Wierd. If it won't bother your utilization or AAofA then I would close it - JMO. Link to comment Share on other sites More sharing options...
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