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Line of Credit vs Revolving Accounts

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CreditBob
Established Contributor

Line of Credit vs Revolving Accounts

I would like to ask anyone that can help me on this. I have a continual open line of credit. How much more of an impact does a line of credit compare to a revolving account? I would appreciate any help on this.
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Anonymous
Not applicable

Re: Line of Credit vs Revolving Accounts

Depends on how it is titled. Some HELOCs are titled as installments. But many unsecured LOCs are revolving. And it could be the opposite. You would have to increase debt by 10% or pay off 10% or more debt to see if it changes your score by this action. If titled as an installment you should not see much of a score change for 10% as long as it doesn't go from 0% to 10% or 10% to 0%. 0% would be scored differently since there is no balance. I would put 1% and let it update to get score, then bring it up to 11%. See if it drops the score more than 4 points. If drops then probably revolving.
Message 2 of 5
CreditBob
Established Contributor

Re: Line of Credit vs Revolving Accounts

Thank you. It is listed as a line of credit. "INSTALLMENT" does not apprear or it is titled as "INSTALLMENT"
Message 3 of 5
haulingthescoreup
Moderator Emerita

Re: Line of Credit vs Revolving Accounts

Don't know if yours is a HELOC (backed up by your home equity) or just a line of credit, but the way they title mine doesn't match how they treat it.

EQ calls my HELOC's credit type revolving, but they include it with mortgage expense on screen 4 and on the simulator, not revolving. They posted $50K as my largest past balance, even though I've only drawn $3K plus the initial mortgage tax. EX calls the account type credit line secured/ revolving and the credit type revolving, and they include it as revolving.

TU is especially screwy. Under account type, they call it a home equity loan and under credit type, they call it overdraft/ reserve checking account. They treat it two different ways on the TU FICO score report. When I look at screen 4, I can see that the $3,060 balance due on it is included in my mortgage balances, not in my revolving:

Your revolving accounts [?] $829
Your mortgages [?] $93,873
Your installment loans [?] $2,044

But when I go over to the simulator and look at the "pay down balances on credit cards" option, they've included the balance due there:

You currently have a combined Revolving/Open Account balance of $3,889.

So they're playing it both ways. This means my scores will be even more wacko when I start really using it for home improvement. EQ won't be particularly bothered, EX will act like I've maxed out a card, and who know what TU will do?
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 5
fused
Moderator Emeritus

Re: Line of Credit vs Revolving Accounts



CreditBob wrote:
I would like to ask anyone that can help me on this. I have a continual open line of credit. How much more of an impact does a line of credit compare to a revolving account? I would appreciate any help on this.


If it reports as a revolving account, think of it as a CC in terms of FICO scoring.
Message 5 of 5
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