Understanding FICO® Scoring

[hstone]

Hi all,

Thanks for all the wonderful contributions you have made to this forum.  I appreciate all the info.

I have a question regarding open line of credits.  Basically, I need to know if they work the same as credit cards...in other words I have a line of credit for $5000 showing zero balance.  It shows up on my credit report as installment account.  Should I try to maintain a 1-9% balance in order to boost my credit score?  The only CC I have has a $1500 CL and my scores are not quite high enough to apply for a limit increase or new CC. Also, I'm preparing to purchase a new home in less than 4 months so I am very desperately trying to raise my score asap, therefore, I am reluctant to apply for CL increase at this time.  Right now my wife and I have FICO scores in the mid to high fives with the highest being a 603, so I'm fairly confident once I pay my CC down to within 1-9% we will have atleast one score within the 620 range needed to buy our home.  Plus, I have several PFD's and GW sent out last week so I have my fingers crossed.

[Brammy]

No ure why its showing up as installment since most lines of credit are considered revolving.  At least in my experience

[hstone]

Here's how it shows up.  I paid it off in May:

Account Owner:

Joint Account  High Credit: $6,467   Type of Account : Line of Credit Credit Limit: $5,500   Term Duration:   Terms Frequency: Monthly (due every month)  Date Opened: 10/2004   Balance: $0   Date Reported: 07/2007  Amount Past Due: $0  Date of Last Payment: 05/2007  Actual Payment Amount: $0   Scheduled Payment Amount: $0   Date of Last Activity: 05/2007  Date Major Delinquency First Reported:   Months Reviewed: 31  Creditor Classification:   Activity Description: n/a  Charge Off Amount: $0   Deferred Payment Start Date:   Balloon Payment Amount: $0   Balloon Payment Date:   Date Closed:   Type of Loan: Check Credit/Line of Credit  Comments: Line of credit  

[Brammy]

I dont see any indication that it is reporting as an installment loan. But I'm not wearing my glasses today either.

Message Edited by Brammy on 08-17-2007 01:46 PM

[hstone]

okay I was confused sorry.  Looks like before I refinanced it was listed as an installment loan and then after the refi it shows as a Line of credit under account type.

BENEFICIAL/H
FC
Installment 10/2002  $0  10/2003  $0 PAYS AS AGREED $0 BENEFICIAL/H
FC
Line of Credit 10/2004  $0  07/2007  $0  PAYS AS AGREED $5,500 

The problem is when I look at a summary of my revolving credit based on my report at Equifax it does not include this line of credit, but only what's available on the CC account.  I've verified the account is still open but again it hasn't shown activity in 3 months and I'm not sure if this is good.

[Brammy]

Okay that way it is revolving.  The bad news may be if it is reportng as a finance company.  Those actualy hurt your score.  Wish I had known that because I have 7 on my reports.  they all say installmnt but when I pull my report one of the negative factors is that I have 7 finance company loans on my score and these are YEARS old.  Oh well if that made it to the top three, can't all be bad news.

[hstone]

Okay...now I'm really confused.  So the fact that this account is even on my credit report at all may actually be hurting me?