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HLoan- What is it?

FICOFreedom
Established Member

HLoan- What is it?

Today I received alert that my FICO score increased. Upon logging into MyFico I found this was due to the following message "Score Watch® alert: Possible lower rate on a new HLOAN ." 

 

What is an HLOAN?? I tried to google and found no answers.

Message 1 of 5
4 REPLIES 4
llecs
Moderator Emeritus

Re: HLoan- What is it?

I believe it is based on your settings for ScoreWatch. When you signed up to SW, you had the option of selecting rates to follow on a car, home, etc. If your score changes, your hypothetical rate can change based on your settings. Sounds like HLOAN refers to home loan and because your FICO score increased, that hypothetical rate within SW improved, and thus the alert.

 

Was that the only alert reason?

Message 2 of 5
FICOFreedom
Established Member

Re: HLoan- What is it?

The alert was for a score increas, the reason was the HLOAN... I do not have a home loan... I do not have a house!

Message 3 of 5
llecs
Moderator Emeritus

Re: HLoan- What is it?


@FICOFreedom wrote:

The alert was for a score increas, the reason was the HLOAN... I do not have a home loan... I do not have a house!


I know. It doesn't refer to any accounts you have. Pull up your SW account. Once you go in, you'll see 5 tabs across the top. One is listed as "What It Means To You". Click on that tab. You'll then see 3 hypothetical interest rates based on your current score: 30 year mortgage, 15 yr home equity loan, and 48 month auto loan. When you sign up  to SW and as part of the service, you have the option to follow, if you want to, hypothetical interest rates based on your current score. SW defaults to "30 year mortgage". It doesn't imply that you have or will ever have a mortgage, it's there to compare your score and offers up an idea of what your interest rate could possibly look like if you applied for a mortgage today. It's a feature. You can ignore it (I do). The SW alert indicated an increase, but also let you know that because of the interest rate, if you ever applied for a mortgage right about now, then you could expect a lower rate because of the increase.

 

BTW, the reason for the increase wasn't due to their hypothetical (HLOAN). Something else caused EQ to increase. It could be any number of things like lower util, TLs not impacting you as much, rebucketing, baddie falling off, etc.

Message 4 of 5
haulingthescoreup
Moderator Emerita

Re: HLoan- What is it?

 


@FICOFreedom wrote:

The alert was for a score increas, the reason was the HLOAN... I do not have a home loan... I do not have a house!


 

+1 to llecs.

 

You've got it backwards --the reason for the increase isn't the home loan. It's telling you that you would get a lower rate on the home loan because your score increased.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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