HELOC and UTI %

[spedteacher1]

I have read a couple posts on here regarding HELOC and I am still confused. My HELOC is being counted towards my overall credit usage and uti%.  Without the HELOC I am at 42% uti, but with the HELOC I am at 63%.  I have been in the repayment phase for about 5 years and the HELOC is at 93%.  I feel like my mortgage score can't move because of this uti % (stuck at 705 experian). I am just using the basic plan on experian to check my score - if I pay and pull the other bureaus will I see something different?  Or, is there a way to have my score calculated without the HELOC as part of my credit card debt?  Any advice?

[Anonymous]

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@spedteacher1 wrote:

I have read a couple posts on here regarding HELOC and I am still confused. My HELOC is being counted towards my overall credit usage and uti%.  Without the HELOC I am at 42% uti, but with the HELOC I am at 63%.  I have been in the repayment phase for about 5 years and the HELOC is at 93%.  I feel like my mortgage score can't move because of this uti % (stuck at 705 experian). I am just using the basic plan on experian to check my score - if I pay and pull the other bureaus will I see something different?  Or, is there a way to have my score calculated without the HELOC as part of my credit card debt?  Any advice?

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I believe HELOCs are considered part of your revolving util. There is no way around it. It will keep your scores supressed because of the individual and total util. There is no way to exclude it. It is a line of credit like other lines of credit - PLOC, etc.

[spedteacher1]

And it is so frustrating because Wells seems to only report every few months so it takes forever to see any change.  

[RobertEG]

Fair Isaac conducted webinars several years ago, in which they provided opportunity to ask their credit scoring employees questions regarding credit scoring and obtain definitive answers.

In one of those webinars, the subject of inclusion of HELOCs in calculation of % util of revolving credit was specifically discussed.

The Fair Isaac gurus stated that, due to their special nature as high amount but secured credit, similar to mortgage loans, they do not include them in revolving % util if the principal amount of the credit is approx. $35K or more.

Yes, it is a bit arbitrary, but I suspect that policy decision remains in effect to this day...

I am not aware of, and the prior statements by Fair Isaac did not address, extension of the $35K threshhold to scoring of other types of revolving credit.

[Anonymous]

Yes HELOCS should count on EX2 unless over $28-$29,000 and they count on EQ5 and TU4 unless they are $35,000 or higher, I believe. They’re treated like credit cards in that respect and have the same cut off. However on version 8, I don’t know of a cut off.