high credit card limit drawback?

[myFlightco]

Hello - I have read that if you have a HELOC that is over a certain amount ($50,000) it is not reported as a revolving line.  Instead, it is a mortgage.  Mortgages are looked upon more favorably when taking up utilization, as far as I understand it.  Please correct me if I am wrong.  Does having a high credit limit like above $30k somehow change how the cc is viewed?  Thank you.

[user5387]

You can find various threads here that suggest that a HELOC reports differently above some $$$ threshold, and you would really need to look closely at the report to see how it's classified.

If an account reports as installment (mortgage) then the utilization is treated separately from revolving, and this is typically a big win.

[myFlightco]

Ok - so it is silly to think that a credit card can be turned into a mortgage account based on the size of the CL.  Thanks

[user5387]

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@myFlightco wrote:

Ok - so it is silly to think that a credit card can be turned into a mortgage account based on the size of the CL.  Thanks

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We may be talking past each other.  Let me try to tie this down a bit.

A HELOC is not a CC, even if they give you a card to draw funds.  However, it may be classified as a revolving account, like a CC.

At some threshold it may start reporting differently, or be scored differently, like an installment, and the figures I've seen are around $30-40K.

If you cross that threshold, and the HELOC is treated as installment, then the utilization is handled differently, and it might be advantageous to use the HELOC instead of a CC.

You would really need to check this out carefully and cover the bases, and there are a bunch of old threads here that go into some of the details.

There's a separate issue about CCs no longer being factored into utilization at around the same threshold.  You can find old threads on this, and I'm not sure what the current rules are.

[myFlightco]

thank you!  that helps.  my concern was shifting over CLs to one account only and having too high of a CL, which would somehow disqualify the cc from utilization calcs.  I spent a good amount of time reading about the HELOC rules but the cc portion was unclear.. I will look for those threads.