Reply
Frequent Contributor
aamex
Posts: 285
Registered: ‎04-28-2011
0

What's the difference...

My score dropped a little because one of my credit cards got reported as a line of credit...does anyone know the differenece?

Wallet: Fidelity Investment Rewards | BOA Travel Rewards | Chase Sapphire Preferred | Discover More
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: What's the difference...

This card was already reporting, right?

 

Is there a reported CL, and if so, what is it?

 

If no reported CL, what kind of card is it?

Valued Contributor
AndySoCal
Posts: 1,949
Registered: ‎04-07-2009
0

Re: What's the difference...

Is the credit card for a revolving Home equity loan?

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
Mega Contributor
RobertEG
Posts: 18,434
Registered: ‎03-19-2007
0

Re: What's the difference...

They are both revolving lines of credit, as they provide an appproved limit of credit that you are permiited to use at your discretion, with repayment revolving around the amount of your current usage.  Thus, both are scored as revolving accounts. 

 

One distinction is how the revolving credit is made available to the consumer....either by tapping on the account balance directly with the creditor, or using a piece of plastic to increase the balance. 

 

A more significant distinction is that many LOCs, such as a second trust account, are secured, and thus have lower risk.  However, other LOCs are totally unsecured.

 

I presume that Fair Isaac perceives some difference in risk based on the type of revolving credit, so may score a CC different than an LOC, or they may score secured CCs different than unsecured cards.

 

How specific those distinction may be are all part of the proprietary mystery of their scoring algorithms.

Frequent Contributor
aamex
Posts: 285
Registered: ‎04-28-2011
0

Re: What's the difference...


llecs wrote:

This card was already reporting, right?

 

Is there a reported CL, and if so, what is it?

 

If no reported CL, what kind of card is it?


 

Fidelity Amex, reporting a credit line

Wallet: Fidelity Investment Rewards | BOA Travel Rewards | Chase Sapphire Preferred | Discover More
Frequent Contributor
aamex
Posts: 285
Registered: ‎04-28-2011
0

Re: What's the difference...


AndySoCal wrote:

Is the credit card for a revolving Home equity loan?


No, no connection to a home equity loan

Wallet: Fidelity Investment Rewards | BOA Travel Rewards | Chase Sapphire Preferred | Discover More
Frequent Contributor
aamex
Posts: 285
Registered: ‎04-28-2011
0

Re: What's the difference...


RobertEG wrote:

They are both revolving lines of credit, as they provide an appproved limit of credit that you are permiited to use at your discretion, with repayment revolving around the amount of your current usage.  Thus, both are scored as revolving accounts. 

 

One distinction is how the revolving credit is made available to the consumer....either by tapping on the account balance directly with the creditor, or using a piece of plastic to increase the balance. 

 

A more significant distinction is that many LOCs, such as a second trust account, are secured, and thus have lower risk.  However, other LOCs are totally unsecured.

 

I presume that Fair Isaac perceives some difference in risk based on the type of revolving credit, so may score a CC different than an LOC, or they may score secured CCs different than unsecured cards.

 

How specific those distinction may be are all part of the proprietary mystery of their scoring algorithms.


interesting it was switching back the next statement, i assume it was an error...

Wallet: Fidelity Investment Rewards | BOA Travel Rewards | Chase Sapphire Preferred | Discover More
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: What's the difference...


aamex wrote:

llecs wrote:

This card was already reporting, right?

 

Is there a reported CL, and if so, what is it?

 

If no reported CL, what kind of card is it?


 

Fidelity Amex, reporting a credit line


Is the CL high? Depending on the FICO version, some versions will drop the CL and balance from util purposes.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}