Will using up your entire home equity credit line count negatively on your credit report and score even if you are never late on your payments?
Using your entire available credit limit, on even one account, is a strong indicator of high credit risk, even if all of your account payments are still being made on time.
Even if you are never late, you can have poor credit scores because your overall credit use demonstrates high lending risk. In most of the instances I see where there are no late payments, the individual has stretched their credit use to the limits.
That is why using all of your available credit on any account, including a home equity line of credit, can have a negative impact on credit scores. The more “maxed out” accounts you have, the more serious the impact on your credit scores.