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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
Re: Private student loan - Revolving account or installment loan?

No prob. It's easy to get into an "Oh, and also..." frame of mind when posting.  :smileywink:

 

Lines of credit are also considered revolving credit. Revolving means you can borrow (charge) against the credit limit, pay it back, and then borrow it again. Installment means you can borrow against the credit limit, but once you've done so, you can't borrow again, even if you pay it back. Sorry, I know that's kind of elementary, but that's why lines of credit fall into the same category as credit cards.

 

If the underlying full reports also show this as a revolving line of credit, rather than an installment loan, then that's how it's being scored. However, if it is, that high CL means that it's being ignored for calculating revolving util. So it's like having a revolving TL (tradeline; credit account), but it's neither helping nor hurting util. Hope that makes sense. :smileytongue: It's definitely an odd situation.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007