Reply
Member
Posts: 8
Registered: ‎03-19-2011
0

Second Mortgage is "Non Mortgage Debt"?

I finally figured out why I have a ceiling on my credit score.

 

I was looking at my FICO Quarterly Monitoring report and saw an entry "Total amount you owe on all non-mortgage accounts".

 

The number was HUGE.  Twenty times my revolving debt.  What the heck?  Then it dawned on me.  The only way they could come up with such a large number was to include our second mortgage (HELOC).  Every penny from that account went to home improvements (and we are not even close to "under water" in home debt)

 

Is this possible? Is a HELOC (second mortgage) classified as "non-mortgage" debt?

 


Starting Score: EQ 768 TU 729
Current Score: EQ 768 TU 723
Goal Score: ALL ABOVE 800


Take the FICO Fitness Challenge
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Second Mortgage is "Non Mortgage Debt"?

HELOCs and LOCs are scored as revolving credit up to a certain limit. That limit varies by FICO version. 

Frequent Contributor
Posts: 341
Registered: ‎04-21-2012
0

Re: Second Mortgage is "Non Mortgage Debt"?

Not only the CRAs but the banks themselves rate your credit as either installment or revovling.  My own bank told me that a HELOC is considered by them to be 65% revovling and 35% installment.  Some have a hard number instead of using a percentage as to the portion of it being revovling.

 

Established Contributor
Posts: 640
Registered: ‎11-30-2012
0

Re: Second Mortgage is "Non Mortgage Debt"?

Each of the three bureaus has our HELOC rated differently.  The weirdest one is TU which has it rated as an overdraft line of credit.  A 50K overdraft line of credit. None of the 3 bureaus have it listed as a mortgage even though it is the only thing resembling a mortgage that is on the report.  Of course the house associated with the line has been sold for nearly 7 years and we don't owe a balance.  But the tradeline is still on there, open and reporting a zero balance with payments made satisfactorily, so who am I to argue?

 

 

When I was a banker I once approved a $1,000,000+ overdraft but that is a different story.

Member
Posts: 8
Registered: ‎03-19-2011
0

Re: Second Mortgage is "Non Mortgage Debt"?

Thank you for your answers confirming my predicament.  I am pretty discouraged now.  I think my dreams of "Great" credit are lessening due to silly stuff like this. 


Starting Score: EQ 768 TU 729
Current Score: EQ 768 TU 723
Goal Score: ALL ABOVE 800


Take the FICO Fitness Challenge

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.