We've talked about how some banks are freezing HELOCs (home equity lines of credit). While it's bad enough to find that your HELOC is frozen, you may also find that your credit suffers.

Credit scores look at how much of your available credit you use. If you're using most or all of it, it looks like you're skating on thin ice -- which means you're more likely to start skipping payments and default on the loan. If you use only a third of your available credit or less, you look secure.

When your bank freezes or reduces funds available through your HELOC, it can look like you've used more of your available credit. For example, if you've got $2,000 outstanding on your $10,000 line of credit, you're good. Things can change if the bank changes your maximum borrowing limit to what you've borrowed: $2,000. Your credit utilization goes from 20% to 100%.

If your bank has frozen your HELOC, make sure you know how it's reflected on your credit reports.

Further reading:

• How to View Your Free Credit Reports
• How Credit Scores Work