Credit Card Center Advertiser Disclosure†
10-21-2013 05:31 PM
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?
10-21-2013 08:18 PM
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.
10-28-2013 05:30 AM
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.
10-30-2013 04:44 PM
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.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. 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.