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Home Equity Line In Repayment - Reporting with Limit

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Anonymous
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Home Equity Line In Repayment - Reporting with Limit

I have disputed this with TU and Experian, but to date it appears only Equifax is reporting this the way I think it should report.  I'm wondering also if it's why my Equifax score is higher than TU by about 20 points.

 

I took out a HELOC a while back, and during the first 5 years could draw on the established line.  As I paid pack principal, I could re-draw on the line.  I don't argue that during this time, this was a line and should have been reported that way.  After the 5 years, however, the interest rate was fixed, the line was dropped to zero so that I could no longer take draws, and basically became a fixed rate home equity loan (second mortgage).  For TU and Experian, however, this loan is still being reported with a $25,000 line of credit.  Since my balance is only down to $20,000 I'm afraid this high utilization is hurting my score.   Equifax reports this just with a balance of the $20k and does not report any credit limit, which is how I think it should report.  They just have a note on the account that says Home Equity LOC.  

 

Who is right, and if I'm right (and it could affect my score as being reported) how do I go about getting this fixed since so far my disputes have failed.

 

Thanks for the help,


Sean

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1 REPLY 1
llecs
Moderator Emeritus

Re: Home Equity Line In Repayment - Reporting with Limit

If you have an agreement with the bank that they'd report as an installment loan after 5 years, then they should honor that. Otherwise, it should report as a HELOC which is a revolving account. If it should be reported as a loan, a dispute wouldn't go far as you experienced. You'd need to talk to the bank since they are the ones reporting that way.

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