Line of Credit that reports as installment loan?

[Anonymous]

Back to the discussion with Timothy and Hauling - do we have evidence of a score WITHOUT a HELOC with a CL over $50k and then adding one and seeing no difference in score even though the credit mix would be improved with an installment loan?

If what Timothy says is true, then I am kinda getting screwed.  I have a HELOC with Wamu that was converted to a "Fixed Rate Loan Option".  It may be reporting as a revolver with EX for example, but they expect (and I do make) payments each month of both P&I in the exact same amount.....

[Anonymous]

My evidence is from my own reports-

I had pulled score just before my 50K HELOC hit and right after it hit. ZERO change in score on all 3 cra's.

At the time- I had 3 open installment accounts-

The new account did not affect my avg age more than a few months-

I was already in the "seeking new credit" bucket

The INQ was already de-duplicated.

I have also put a significant balance on it and let it report with no change in FICO score-

I don't have an example that matches your criteria,

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Boscoe wrote:

Back to the discussion with Timothy and Hauling - do we have evidence of a score WITHOUT a HELOC with a CL over $50k and then adding one and seeing no difference in score even though the credit mix would be improved with an installment loan?

If what Timothy says is true, then I am kinda getting screwed.  I have a HELOC with Wamu that was converted to a "Fixed Rate Loan Option".  It may be reporting as a revolver with EX for example, but they expect (and I do make) payments each month of both P&I in the exact same amount.....

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[haulingthescoreup]

Same for me as with Timothy. When my HELOC posted early last October, my scores actually went up (between 3 and 9 points, although there was probably something else happening as well), and they have never dropped due to increasing balances, although I got a good scare there once. It turned out to be a rebucket on EX.


edit to add: like Timothy, I already had a mortgage and SL, I think it was, so it's not like I had all revolving, and this was the first installment credit.

Message Edited by haulingthescoreup on 08-11-2008 07:24 AM

[Anonymous]

I've never been approved for an loc. Recon, denied. (800 scores do not guaranty approvals). I could guess that it changing to an installment would not gain more points unless you are lacking something in the installment area. Otherwise I am guessing it would be treated as any other positive installment. But if you had the choice of revolving vs installment for scoring debt I'd want installment. LOCs are nice to have even if it is not over $50k. Extra money when you need it.

Message Edited by ilovepizza on 08-11-2008 01:31 PM

[Anonymous]

I think pizza hit it on the head.  Maybe many of us are not seeing much benefit from a HELOC due to the fact that we already have an installment or 2 or 3.   I bet you see an increase if the HELOC is your first installment......

Another related quick question:  How much of a scoring bump can one expect in these situations:

1) Have revolving only.  Add an installment.  Is the increase meaningful?

2) Have revolving and non-mtg installment (auto, SL, etc.), and add a mtg loan.   Same question as above.

Thanks.

[Anonymous]

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@Anonymous wrote:

1) YES. Have revolving only. Add an installment. Is the increase meaningful?

2) NO/YES. Have revolving and non-mtg installment (auto, SL, etc.), and add a mtg loan.

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I think the better question is what if you have a mortgage -vs- a non mortgage loan for the first installment? Don't know how the mortgage is treated exactly. I would say 2 installs would be better than just 1. Just like credit cards. But do you have to pay them down to 50%?

Message Edited by ilovepizza on 08-11-2008 04:58 PM

[haulingthescoreup]

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@Anonymous wrote:

I think pizza hit it on the head. Maybe many of us are not seeing much benefit from a HELOC due to the fact that we already have an installment or 2 or 3. I bet you see an increase if the HELOC is your first installment......

Another related quick question: How much of a scoring bump can one expect in these situations:

1) Have revolving only. Add an installment. Is the increase meaningful?
2) Have revolving and non-mtg installment (auto, SL, etc.), and add a mtg loan. Same question as above.

Thanks.

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For question #1, DD#2 (age 20) just had her student loans for her summer in Ireland post. 25-point gain (this includes a util drop, but not a huge one. She is in the thin, short history bucket (few accounts, all very young, one 30-day late), and the sims even projected a score increase if she added installment.