4 year old account suddenly reclassified

[Anonymous]

I have a home equity line of credit for $39,000  For the last four years it has not affected my credit score because it was listed as a mortgage loan.  Now, for some reason they have reclassifed it as a credit card and it is killing my utilization.  Any advice on how to approach this to make agencies change it back?

[Anonymous]

duplicate / deleted.

Message Edited by ilovepizza on 01-17-2008 04:07 PM

[Anonymous]

It's about the debt or credit amount. Funny how that works hah? It hurts and hurts until you get deeper in debt then it doesn't hurt any more. lol. Try increasing the CL over $65k. I'm not sure if it is the debt or CL that changes it. Increasing the CL might do it. Then again it might be the debt amount over a specific notch that changes it.

This will do it regardless of CL or Debt. See if your lender will title it as an HELOC installment. That will do the trick for sure and then you won't have to worry about CL and debt amount. Right now it sounds like it is being scored as a revolving account.

[Anonymous]

Either the debt of the CL will change it - 

I know 50K is ignored on all 3. I have not seena confrmed $ ammount bellow 50K.

---

ilovepizza wrote:
It's about the debt or credit amount. Funny how that works hah? It hurts and hurts until you get deeper in debt then it doesn't hurt any more. lol. Try increasing the CL over $65k. I'm not sure if it is the debt or CL that changes it. Increasing the CL might do it. Then again it might be the debt amount over a specific notch that changes it.

This will do it regardless of CL or Debt. See if your lender will title it as an HELOC installment. That will do the trick for sure and then you won't have to worry about CL and debt amount. Right now it sounds like it is being scored as a revolving account.

---

[Anonymous]

I'm sorry, I don't really know what ya'll just said.  I have thought about getting it reclassified.  The original debt was $39,000.  I took it out to put into my business, with the intention of paying it off when I sold the house it taken out against.  Long story short, I couldnt sell the house so I have been making minimum payments for four years.  It does show as a revolving account , but with no available credit.

The only thing that bugs me is that I was at nearly 100% utilization on credit cards for 2 years and I paid them off.  After paying them off my credit score dropped 50 points. 

[Junejer]

I had a HELOC for $30M and it was classified as installment on EQ & TU. But, the devil classified it as revolving. I think that it is CRA driven up to a certain amount.

edit: M = thousand

Message Edited by ByrdMan on 01-18-2008 10:14 PM

Message Edited by ByrdMan on 01-18-2008 10:14 PM

[haulingthescoreup]

Experian (see ByrdMan, I can say its name! ) treats HELOC's with lower credit limits as revolving. I know that my $50K HELOC was treated by all 3 CRA's as installment even with very minimal usage.

Interesting that your credit limit is $39K! I have seen suggestions that $40K is the magic figure for them to be treated as revolving by all three. Certainly $50K will do the trick. Do you think that there is any chance that your lender will raise the CL? Even if your EX score was dinged, the other two should be OK if they are reporting it as installment.

Again, I don't think any of us know for sure that $40K is the break point. Any other members with a $40K HELOC? How is it treated by EX?

[Anonymous]

I've seen upper $40's CL as revolving. Not sure if a debt over $40k will trigger it though?