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


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Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
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
Roarmeister
Posts: 325
Registered: ‎04-21-2012
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.

 

AMEX_PlatinumBMOWorldMCCapOnePlatinumMBNA_Platinum+ScotiaMomentum
____$25k_______$20k_______$20k_______$25k_______$25k____
Starting Score: 676 Feb 2008; Current Score: 788 EQ, 814 TU, September 2014; Goal Score: 800 by end of year
Oldest Account reported by EQ: 12 years; EQ AAoA: 5.5 years; EQ Credit Utilization: 3.4%
Established Contributor
coterotie
Posts: 502
Registered: ‎11-30-2012
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
manfromunkle
Posts: 8
Registered: ‎03-19-2011
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


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