Wait to get a HELOC or go for it?

[Jason Neff]

Hi everyone,

We started the process on a heloc and were told that some smaller debt should be paid down to improve our credit score before applying to get a better interest rate. It would still be possible to get a heloc now with a higher interest rate to take advantage of higher home equity and be prepared with reserves if deals come up. The other option would be to pay down some small debt first to show on the bureau reports in the next 30-60 days. I am concerned that prime interest rates will keep rising in the meantime as well as possible tightening in lending requirements, plus house values could decline significantly in the 60 days. Trying to figure out what the best decision would be in this situation. Looking forward to your feedback. Thanks!