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Experian is showing my new HELOC with Andrews FCU as revolving debt as opposed to real estate loan. I get that a HELOC is considered revolving but why would it not be real estate loan since it is secured by RE???
Thanks!
@NYFan63 wrote:Experian is showing my new HELOC with Andrews FCU as revolving debt as opposed to real estate loan. I get that a HELOC is considered revolving but why would it not be real estate loan since it is secured by RE???
Thanks!
Just as a secured credit card is secured by deposit, so is a HELOC also secured revolving line of credit...in this case secured by your house. A standard real estate loan has a regular payment and a declining balance. HELOC balance may go higher or lower, based on payment on balance or further accessing the credit line.
A HELOC is a revolving line of credit, providing a preset limit upon which the consumer may draw against, with payments that revolving around the discretionary use.
It is normally scored as revolving.
However, FICO made the decision to treat a HELOC that is above a certain amount as an installment account.
The limit is approx. $35K.
Thanks guys!!!