Where do HELOC's fit in?

[Anonymous]

Does a HELOC report your CL, or does it depend on the lender? 

Would the CL, assuming the account had a zero balance, immediately reduce your overall util?

Would a Heloc's fall in the same type of debt category as a mortgage, or would they be rated more like a personal or car loan? 

TIA

Message Edited by Felicity on 06-01-2007 12:47 AM

[Anonymous]

On my reports, the various HELOCs I've had are listed in several different places - it's like the CRAs don't agree on where to put them, which could partially be caused by how different lenders report them to the CRAs.

For reporting purposes, HELOCs appear to be a kind of Revolving/Mortgage hybrid. As far as I know, they do not affect the revolving utilization percentage. On my Equifax report, one of the comments cited my utilization percentage as xx%, and that percentage could not have included my HELOC.

[Anonymous]

Thanks!  I'm curious though I'd probably be too afraid to get one to bring my util lower.  (I watch too much Suze Orman...lol.)

Of course if I listened to all her opinions I'd be walking around bare a-- naked and hungry because I'm sure she'd tell me I can't afford to buy food and clothing!

[Anonymous]

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Revike wrote:
..... On my Equifax report, one of the comments cited my utilization percentage as xx%, and that percentage could not have included my HELOC.

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Uh oh!  2 xx's.  Guess that means you overshot that magical 1-9% pot at the end of the rainbow too.

Message Edited by Felicity on 06-01-2007 01:13 AM

[Tuscani]

 It depends on the lender. You should ask if the HELOC will report as a revolving line, installment loan, or mortgage on your CR. How they report will make a big difference on how a HELOC will impact your scores. I've heard stories of people calling into banks and raising such hell that the bank switched over the type of credit it was to appease them.. YMMV

[Anonymous]

The best place to have HELOC's is under Mortgages.