After examining all your sources of income and reviewing your documents, some lenders use your total available credit to determine your credit eligibility when considering additional loans or lines of credit. So, even if you carry no balance on your accounts, have a large home equity line of credit can make it more difficult for other loans.

Rather than “playing it safe” by getting approved for the largest line of credit, evaluate, and try to predict, exactly what you will be using the credit line for, and set up the loan or line of credit for this amount.