One of the undisclosed pitfalls of the consumer credit field for homeowners is that Experian treats 30 year fixed rate home equity loans as "installment debt", not as "real estate debt".
If the data from the lender does not have the term "mortgage" in the account name, Experian treats all indebtedness requiring fixed monthly payment as installment debt.
If this seems like treating parking tickets received on Saturdays as third degree felonies, join the club.
Indebtedness categorized as installment debt is fine with lenders, as long as it is a small portion of a person's gross family income. As this is the type of lending used to finance consumption ( if not impulse ) purchases such as cars, large screen televisions, hot tubs, boats, and other rapidly depreciating assets, only a fool or spendthrift will allow his total indebtedness in the subtotal of "installment debt" to rise beyond a small portion of his gross family income.
If by an illogical and arbitrary process, the credit bureau adds the amount of your long term fixed rate home equity loan to those actual installment purchases your made, you get an enormous number which should shock any rational credit officer.
There is absolutely no disclosure of this arbitrary and illogical categorization decision by credit bureau Experian. Therefore if you have an unblemished history of making every one of your payments on time and have prudent and conservative purchasing habits, yet are treated as a virtual leper by those in the credit field, perhaps your home equity loan is the root cause of your misery.
If you feel that making of public policy by a credit bureau is inappropriate, you might let regulators ( FTC and CFPB ) know of your feelings. Edited will send a typed letter or email to your public officials gratis to convey your thoughts. You can now feek empowered to deal with this nonsense.
Edited to remove a political link - llecs, myFICO moderator
