Just noticed that an Installment account is reporting as a Revolving -- Dispute or Not

[LuvsRetro]

I have HSBC Finance and they are reporting as Revolving. 

Should I dispute and have them change it to Installment?

I think it's factored in my utility and I think it's hurting.

I am thinking of applying with PenFed to reduce the interest rate to the 2.9% if it's still available.

[Anonymous]

If this is truly a fixed term installment loan, then yes, getting it coded correctly helps your utilization on revolving debt.  CC's account for a much higher percentage of your FICO than do the installments, especially when considering balances.

CC balance to "limit" is best when at 9% or less.  Installment loans are not nearly as sensitive and you get your maximum "ratio" benefits when you get down to 65% balance to original loan amount.

So, if this is reporting as a revolving account, then it is going to affect FICO like a "maxed out" credit card.  Not good, need to get it fixed

[Lel]

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@teamfico wrote:

I have HSBC Finance and they are reporting as Revolving. 

Should I dispute and have them change it to Installment?

I think it's factored in my utility and I think it's hurting.

I am thinking of applying with PenFed to reduce the interest rate to the 2.9% if it's still available.

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Just to be clear - what kind of loan is this?  Is it a mortgage, a home equity loan, a home equity line of credit (HELOC), an auto loan, or something else?

If it is a HELOC, then it might be correctly coded as revolving.

[LuvsRetro]

Personal Installment Loan.

About 85% due on the balance.

[Lel]

In that case, then I would also ask them to re-code your loan correctly.  However, having a personal installment loan on your profile might not be as positive a factor as other types of installment loans, like mortgages, auto loans, and student loans.