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I've seen LOC advertised from Citibank as 60 installments. They determine the payment to be 60 months from each initial draw. Wonder how this works. Maybe I should apply?
My sense is that scoring of LOC's can be a gray area.
With respect to HELOC's, my recollection from a FICO article of a couple of years ago is that the outstanding balance determines how the line is scored. For a low to moderate balance (say $2K - $20K) the loan will be treated as revolving debt. For a high balance (say $50K+) the loan will be treated as installment. It was written that the dividing line was unwritten -- I'd speculate it's either due to something FICO didn't want to put a fine line on, or perhaps a distinction that varies depending upon other credit profile factors.
In general, other unsecured lines of credit will be reported as revolving debt. But I've seen with other accounts (notably, "no preset limit" credit cards) that specifics of how the CRA reports the account can impact whether the account is considered when total revolving utilization is evaluated.
What I'll note is that my wife's GE LOC and my Citi Flex LOC are classified on True Credit reports in the section with our HELOC, suggesting the possibility they might be scored along a roughly similar logic to the HELOC (although different balance thresholds might apply).
With respect to HELOC's, my recollection from a FICO article of a couple of years ago is that the outstanding balance determines how the line is scored. For a low to moderate balance (say $2K - $20K) the loan will be treated as revolving debt. For a high balance (say $50K+) the loan will be treated as installment. It was written that the dividing line was unwritten -- I'd speculate it's either due to something FICO didn't want to put a fine line on, or perhaps a distinction that varies depending upon other credit profile factors.
In general, other unsecured lines of credit will be reported as revolving debt. But I've seen with other accounts (notably, "no preset limit" credit cards) that specifics of how the CRA reports the account can impact whether the account is considered when total revolving utilization is evaluated.
What I'll note is that my wife's GE LOC and my Citi Flex LOC are classified on True Credit reports in the section with our HELOC, suggesting the possibility they might be scored along a roughly similar logic to the HELOC (although different balance thresholds might apply).
Starting Score 1/01/10: TU:768 EQ:770
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