Home Equity Loan - credit card utilization question

[dave1980]

I have a credit score around 720. Overall DTI around 33%. Enough equity built for a 50K Home Equity loan.

Question is - i have one credit card that is 29% utilization and another credit card that is 99% utilization. 

I need cash ASAP. But will the 99% utilization card impact on the rates or anything that I'm not aware? [or] since the overall DTI is at 33%, I should not be worried and goahead and apply ? Since this will make a hard inquiry on the report, i'm asking for help if I put down the application. Please advise.

[ShanetheMortgageMan]

Utilization on accounts won't directly factor into the interest rates.  But it does impact your credit score, which does factor into the interest rate.

The primary factors that determine your interest rate are credit score, loan amount, combined loan-to-value (CLTV) of all mortgages and occupancy type (primary residence, second/vacation home, investment property). 

[Thomas_Thumb]

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@dave1980 wrote:

I have a credit score around 720. Overall DTI around 33%. Enough equity built for a 50K Home Equity loan.

Question is - i have one credit card that is 29% utilization and another credit card that is 99% utilization. 

I need cash ASAP. But will the 99% utilization card impact on the rates or anything that I'm not aware? [or] since the overall DTI is at 33%, I should not be worried and goahead and apply ? 

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The card UT of 99% is probably dropping your credit score 30 points vs a 29% UT on the card. That may have a rate implication.

However, if you need the money, it's a moot point and 720 is not a bad score.

[pizzadude]

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@dave1980 wrote:

I have a credit score around 720. Overall DTI around 33%. Enough equity built for a 50K Home Equity loan.

Question is - i have one credit card that is 29% utilization and another credit card that is 99% utilization. 

I need cash ASAP. But will the 99% utilization card impact on the rates or anything that I'm not aware? [or] since the overall DTI is at 33%, I should not be worried and goahead and apply ? Since this will make a hard inquiry on the report, i'm asking for help if I put down the application. Please advise.

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Assuming that you're taking the loan out to pay off these credit card balances then I'd move forward.  Not sure what interest rate you're paying on the CCs but almost certainly it's 2X or 3X the home equity rate.