Student loan reporting as revolving!

[bigbus]

Hi there!  I've been lurking these forums for quite some time now and finally have found a question that I have not seen answered!  I recently filed bankruptcy and am awaiting my discharge.  I recently pulled some credit reports in order to see my status and see what I need to clean up.  I just noticed that I have a revolving account of about 22000 that was a student loan given by my local CU. 

The credit reports that I have pulled have this loan listed as a negative against me because my utilization is at 118% with this loan counted as revolving.  It is my only revolving account because the bankruptcy has set all the others at a $0 balance.  After I graduated, the deferred interest was added to the loan principle which caused it to go above 100%.  Does anybody here have any experience with this?  I think I am going to either dispute this or try to email the student loan lender and having them change it.  Any input would be great.  Thanks!

[llecs]

---

@bigbus wrote:

Hi there!  I've been lurking these forums for quite some time now and finally have found a question that I have not seen answered!  I recently filed bankruptcy and am awaiting my discharge.  I recently pulled some credit reports in order to see my status and see what I need to clean up.  I just noticed that I have a revolving account of about 22000 that was a student loan given by my local CU. 

The credit reports that I have pulled have this loan listed as a negative against me because my utilization is at 118% with this loan counted as revolving.  It is my only revolving account because the bankruptcy has set all the others at a $0 balance.  After I graduated, the deferred interest was added to the loan principle which caused it to go above 100%.  Does anybody here have any experience with this?  I think I am going to either dispute this or try to email the student loan lender and having them change it.  Any input would be great.  Thanks!

---

Welcome! Before doing anything I recommend you pull your FICO reports for TU and EQ to at least confirm that FICO sees it as a revolving. I've used 3rd-party reports from many sources and I've had loans report the same, even though FICO didn't see it that way.

Once confirmed that it is viewed as a revolving, then I wouldn't dispute. I'd talk to the CU. Maybe there's some internal coding they can do to fix it.

[bigbus]

The report that I get from myFico is an EQ FICO report right?  This has been the only report I have pulled so far.  I am waiting for the bankruptcy to discharge and I will go through the other 2 reports.  As for the EQ report I got here, it reports as revolving with the util of 118% as it is the only balance reported.

[InvincibleSummer3]

Weird. The only other time I've seen this is when someone I know got an LOC from their credit union that could be used as a SL. She happened to remember it that way, and was surprised when it reported as a revolver.

I'd speak with the credit union, myself.

[bigbus]

Yeah, I think I am going to try to get the CU to report it as an installment.  I guess It was originally a LOC but it could only be used for school as the CU sent direct payment to the university and the university dictated how much I could get.  Hopefully the CU would change it or I will try my luck with disputing and see what happens.

[bleahey]

I am a financial aid administrator and can tell you that credit union student loans are in fact "lines of credit" and hence "revolving". Supposedly to avoid some of the disclosure requirements.