topic Re: Personal loan from CU affect utility? in Understanding FICO® Scoring

Personal loan from CU affect utility?

rogersave — Wed, 01 May 2013 02:16:01 GMT

Updated my scores today my equifax went up a couple points but my TU went down like 30. I recently took at personal loan out. It is being reported on both reports but TU has my util at like 70 percent and EQ has it at 4% Which CA is correct. Can I dispute it with TU. any answers are appreciated. Thank you

Re: Personal loan from CU affect utility?

llecs — Wed, 01 May 2013 04:27:03 GMT

I'm guessing you pulled this info off your FICO report? Look on the Accounts page. There is a symbol to the left of each account that indicates what type of account FICO sees it as. It should have the same icon as other loans, which should be a money bag, if I recall correctly. The only reason I can think of that would cause FICO to see it as a revolving is if this were a LOC.

Re: Personal loan from CU affect utility?

rogersave — Wed, 01 May 2013 14:47:11 GMT

Yes I pulled off of fico report. It does have a money bag next to it. TU is including it in my util while EQ is not. Anyone know which is correct?

Re: Personal loan from CU affect utility?

thom02099 — Wed, 01 May 2013 16:01:27 GMT

@rogersave wrote:
Yes I pulled off of fico report. It does have a money bag next to it. TU is including it in my util while EQ is not. Anyone know which is correct?

They are both correct. TU chooses to report it one way, EQ chooses to report it differently. Does that make them accurate? That's subject to debate! That doesn't make one of them incorrect, just makes them different. Also, keep in mind that the TU report here is the TU98 model, an older model that few lenders use, more frequently replaced by TU04 and to a lesser extent, TU08. Do a search on TU04 here and you can find threads for sources of the TU04 model.

Re: Personal loan from CU affect utility?

llecs — Thu, 02 May 2013 01:44:29 GMT

@rogersave wrote:
Yes I pulled off of fico report. It does have a money bag next to it. TU is including it in my util while EQ is not. Anyone know which is correct?

Good. What does it say under "Account Type" [within the TL]?

Re: Personal loan from CU affect utility?

rogersave — Thu, 02 May 2013 02:00:56 GMT

It says it is an "open" account

Re: Personal loan from CU affect utility?

llecs — Thu, 02 May 2013 02:10:17 GMT

Does the util match exactly when you calculate it on your own? It would go off the balance and high balance if it is factored into util.

It's possible that it is included. I have an installment account that also lists as "open" (as in open-ended). EQ does not factor it into util but my TU does. In essence, when I first opened it it was viewed as being maxed out. I talked to my creditor a couple of times and they said that's how they report to TU and there's nothing I could do. Over time, I paid it down and it greatly helped my FICO whenever I carried a balance on my other CCs, but initially it hurt quite a bit.

You wouldn't dispute TU because it's the creditor that's reporting that way. It would be something to take up with the OC.

Re: Personal loan from CU affect utility?

rogersave — Thu, 02 May 2013 02:14:24 GMT

Thank you for the information. I plan on paying loan off pretty quickly (used it to pay for some of my wedding) I am in the garden so it's not that big a deal.thanks again!!!