topic Re: Loan Type Reporting Inaccurate in General Credit Topics

Loan Type Reporting Inaccurate

Thunderseven — Sun, 26 Oct 2008 21:54:05 GMT

I have a $10K loan with my FCU that is being reported as a revolving account which is making it appear as though I'm using 89% of my available credit based off the amount I have paid off. Can the type of loan be changed to an installment type on my CR to lower my percentages? I don't understand why this is reporting as revolving anyway. Any thoughts?

Re: Loan Type Reporting Inaccurate

cadavis0609 — Sun, 26 Oct 2008 23:58:27 GMT

Are you sure that it is set up as an installment loan and not a LOC?

Re: Loan Type Reporting Inaccurate

Thunderseven — Mon, 27 Oct 2008 00:34:17 GMT

Good point. If it is a LOC, I wonder if it would be beneficial to have it changed to an installment loan to bring my percentages down?

Re: Loan Type Reporting Inaccurate

Anonymous — Mon, 27 Oct 2008 03:27:31 GMT

If you are sure it is reported in the wrong way, send a letter to the reporting entity to notify them it is a violation of FCRA to report incorrectly and politely asking them to fix within a given timeframe.

if they don't act, you send them an ITS letter. They don't move, you sue them in Small Claims court for violation of FCRA and ask $1,000 per month reported incorrectly - limited to the Small Claim cap in your jurisdiction.

That should get their attention.

Re: Loan Type Reporting Inaccurate

Thunderseven — Mon, 27 Oct 2008 19:41:14 GMT

I have a call into my FCU to see if it is in fact an installment loan or a LOC. When I applied for it, I applied for an installment plan. So it could be a problem here and not at the CRA's. I'll keep you posted. Thanks!!!

Re: Loan Type Reporting Inaccurate

MidnightVoice — Mon, 27 Oct 2008 19:47:07 GMT

I have a HELOC with my CU. They report it the same way to each CRA, and each CRA treats it differently.

Telling that to the CRA does not seem to help much - EX thinks it is a credit card!

Re: Loan Type Reporting Inaccurate

Thunderseven — Mon, 27 Oct 2008 19:53:46 GMT

I'm sure mine isn't a HELOC since I didn't own my home at the time I applied. But I'll keep you all posted with what I do find out. Thanks!!!

Re: Loan Type Reporting Inaccurate

Thunderseven — Mon, 27 Oct 2008 22:39:51 GMT

Well, I spoke to the Branch Manager at my FCU and was told that it should be reporting as an installment loan and not a revolving account. She said I will need to contact their loan officer to get it changed, but that it shouldn't be a problem. My question now is, what affect will changing the loan type have on my score? My percentages will change for the good, but I'm concerned about the date updated. Will this hurt my score? I look forward to hearing from anyone on this. Thanks!!!

Re: Loan Type Reporting Inaccurate

RobertEG — Tue, 28 Oct 2008 05:04:15 GMT

It will clearly have a positive affect on your score. It will delete the high revolving %util from your scoring. Installment %util has minimal impact on scoring. It will also add an installment loan to your credit mix, which will help the type credit in your scoring.

The date will still be the date opened, and thus not impact your age of the account.

Good work!

Message Edited by RobertEG on 10-27-2008 10:04 PM

Re: Loan Type Reporting Inaccurate

Thunderseven — Tue, 28 Oct 2008 19:59:59 GMT

Robert,

Thanks for the info. After reading your response, I emailed my loan officer and branch manager asking them to contact the CRA and have the loan type changed to an installment loan. I should hear something from them tomorrow. I'll let you know what they say.

Thunderseven

Re: UPDATE - Loan Type Reporting Inaccurate

Thunderseven — Sat, 01 Nov 2008 00:31:52 GMT

Well, I heard back from the FCU today and they were making the change as I was speaking to them on the phone. It hasn't hit the CRA's yet, but I'm sure it will in a few weeks, if not sooner. I ran another FICO just now and allowed them to simulate a solution. The one score that has been staying down is EQ. That's where this revolving account is reporting. I was glad to see what they came up with (see below).

"Best Action - Pay Down 90%-100% of Your Credit Card Balances - Over the Next 24 Months

How you manage your revolving accounts (credit cards, department store credit cards, revolving lines of credit) is heavily weighted in the FICO® score. FICO® scores evaluate your revolving accounts in a variety of ways, including comparing your balance to your available credit, as well as looking at the number of accounts with a balance. A general rule to remember: consistently carrying lower balances on your revolving trade lines will generate positive points for your score.

This simulation was based on your paying down 90%-100% of your overall credit card balances over a period of 24 months. In general, your score will be helped as your credit history lengthens and you establish FICO® healthy behavior. So this score simulation took into account both your lower balances and the aging of your credit history."

As soon as this loan gets switched to an installment type loan, my percentage should drop from 89% down to 1-2%. My EQ score today with this loan reporting incorrectly is 645. The simulation put me at 715 by paying down my revolving credit. Hopefully I'll see that when the change finally posts. I'll keep you posted when it does.

Score changes from 10/20/08 to today:

EQ - 10/20/08 - 635

10/31/08 - 645

TU - 10/20/08 - 665

10/31/08 - 689

EX - 10/20/08 - 681

10/31/08 - 695

700 CLUB IS GETTING MORE AND MORE VISIBLE....

Re: Loan Type Reporting Inaccurate

Thunderseven — Sat, 29 Nov 2008 21:11:43 GMT

Well, my CU and EQ finally made a change to the loan type. What in the world is an "Installment Sales Contract" and how does it pertain to a personal loan? There was no purchase of any type.