topic Re: HELOC: Factored in to Revolving Utilization? in Understanding FICO® Scoring

HELOC: Factored in to Revolving Utilization?

Focker69 — Wed, 17 Nov 2021 13:46:36 GMT

Hello,

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

Many thanks in advance!!

Re: HELOC: Factored in to Revolving Utilization?

Anonymous — Wed, 17 Nov 2021 16:07:25 GMT

Excerpt from the Primer, which is worth checking out if you haven't done so already:

HELOCs should factor as revolvers on Score 2/3, if they are below the revolver dollar cutoff.

However, HELOCS don't appear to factor on 5/4 (there were rumors of an update, funny how it factors on 3).

On 8/9, HELOCS factor separately and as a ratio to all revolver balances in version 8 at TU and EX. See Codes 62 and 64.

Re: HELOC: Factored in to Revolving Utilization?

SouthJamaica — Wed, 17 Nov 2021 17:52:19 GMT

@Focker69 wrote:
Hello,

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

Many thanks in advance!!

Sometimes they report as revolving accounts, sometimes as mortgages. It depends on the lender.

Re: HELOC: Factored in to Revolving Utilization?

Anonymous — Thu, 18 Nov 2021 20:19:54 GMT

@SouthJamaica wrote:
@Focker69 wrote:
Hello,

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

Many thanks in advance!!
Sometimes they report as revolving accounts, sometimes as mortgages. It depends on the lender.

What lenders report a HELOC as a mortgage? All HELOCs that I am aware of report as a revolving account, since they are a revolving product. A home equity loan I am sure could report as either a mortgage or an installment loan.

Re: HELOC: Factored in to Revolving Utilization?

SouthJamaica — Thu, 18 Nov 2021 23:21:52 GMT

@Anonymous wrote:
@SouthJamaica wrote:
@Focker69 wrote:
Hello,

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

Many thanks in advance!!
Sometimes they report as revolving accounts, sometimes as mortgages. It depends on the lender.
What lenders report a HELOC as a mortgage? All HELOCs that I am aware of report as a revolving account, since they are a revolving product. A home equity loan I am sure could report as either a mortgage or an installment loan.

I don't know, I've never had one. But I have seen many reports in this forum by people whose HELOC reported as a mortgage. E.g., :

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-Reporting/m-p/4773335#M199758

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-reporting-as-Revolving-CC/m-p/63591#M1850

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/experian-reporting-HELOC-as-revolving/m-p/228143#M20413

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-is-reporting/m-p/137537#M6634

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/HELOC-Reporting-for-FICO/m-p/561985#M40444

Re: HELOC: Factored in to Revolving Utilization?

Anonymous — Fri, 19 Nov 2021 19:27:41 GMT

@SouthJamaica wrote:
@Anonymous wrote:
@SouthJamaica wrote:
@Focker69 wrote:
Hello,

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

Many thanks in advance!!
Sometimes they report as revolving accounts, sometimes as mortgages. It depends on the lender.
What lenders report a HELOC as a mortgage? All HELOCs that I am aware of report as a revolving account, since they are a revolving product. A home equity loan I am sure could report as either a mortgage or an installment loan.
I don't know, I've never had one. But I have seen many reports in this forum by people whose HELOC reported as a mortgage. E.g., :
https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-Reporting/m-p/4773335#M199758
https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-reporting-as-Revolving-CC/m-p/63591#M1850
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/experian-reporting-HELOC-as-revolving/m-p/228143#M20413
https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-is-reporting/m-p/137537#M6634
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/HELOC-Reporting-for-FICO/m-p/561985#M40444

Thanks for the links! I hadn't seen those before. Interesting how the HELOC reporting seems very inconsistent.