TU Utilization Factors in Balance from Installment Loan Collection?

[TenaciousRebuilder]

My EX & EQ scores have finally crept up to 650 (from sub 500 territory) and I have a few realy ugly items scheduled to drop off in the next year as well. One of them is a collection on a $10k installment loan.

The collection and it's $10k balance are on all 3 reports in the open account section rather than the collections section - presumably because they purchased the debt from the OC.

My problem is that TU is factoring in this installment loan collection with my revolving utilization so while my EX & EQ scores are around 650 with <10% revolving utilization, my TU score is about 550 with 115% utilization.

Given that this is a collection on an installment loan, should the balance factor into my utilization calculation? FYI, the account's description does indicate that it is a colletction.

Thanks for your help.

[guiness56]

A collection account nor an installment loan should factor into your revolving utilization.

Even if it was purchased it is still a collection and should be in the collection section.  How they end up in the accounts I am not sure but believe it has to do with the CRAs.

But yes, I have seen those collection in the accounts factor in and they should not.  Especially an installment.

[TenaciousRebuilder]

Thanks for your response guiness56. I looked through the TU online dispute site and there don't appear to be any appropriate dispute categories. Is my best option to dispute to TU in writing (w/ CMRRR)?

[llecs]

What kind of loan was it?

[TenaciousRebuilder]

Home improvement loan

[llecs]

I ask because some lenders will take a home improvement loan or a 2nd mortgage and morph it into a HELOC. Depending on the limit (YMMV on FICO version...usually $40k+) they are treated as a revolving account. Who is reporting it? The OC?

[guiness56]

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@llecs wrote:

I ask because some lenders will take a home improvement loan or a 2nd mortgage and morph it into a HELOC. Depending on the limit (YMMV on FICO version...usually $40k+) they are treated as a revolving account. Who is reporting it? The OC?

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It is a CA who purchased the debt from the OC. 

[guiness56]

For that matter, a CA cannot report it as an installment in the first place.  It is a collection account.

Who is the CA?

[TenaciousRebuilder]

LVNV Funding

[Shogun]

They must be reporting as a "factoring company" and somehow in the OC revolving category.  Where did you get the report from?  Sometimes 3rd party reports aren't 100% reliable.