Lines of credit

[Imhotrodcrazy]

Are personal lines of credit reported to crb's?

[llecs]

Often. If reported, then it is scored as a revolving TL. I have a Penfed OD account that reports like a LOC.

[RobertEG]

It is entirely up to the creditor.  The FCRA never requires any creditor to report an account to the CRAs.  The decision to report to a CRA is a business decision on the part of the creditor, and it costs them money to do so.  The FCRA does not regulate their busness decisions in this area.

What it requires is that once they do report, all further reporting must be accurate.

[Anonymous]

If the lender reports their loans and CC's to CRA's then, yes, they will report the LOC.

Sometimes certain banks will not report Over Draft protection since it is not a true line of credit.  Some OD is a line of credit attached to an checking account, but sometimes it is just a "protection feature" and you have to cover the shortage in short order, not as a loan with payments over time.

As an example:  NFCU approved me for a NAVcheck LOC, which can be used as OD and as LOC (write a check against and them make minimum payments).  However, CCCU gave me $750 OD which must be paid back in short order and is not a loan, but considered a service and protection for occassional checking mistakes to avoid merchant NSF fees and embarrasement.

Message Edited by txjohn on 12-07-2009 01:16 AM

[Imhotrodcrazy]

Thank you all for your input.  It's appreciated. 

Txjohn,  As in your NFCU example, I am sure that is how mine is going to work since they gave me a LOC of $15,000 and noted that I could make a purchase against that amount and make monthly payments if I so desire.  I just wasn't sure if the LOC would be reported, which is what I was hoping. Thanks for the example, it sure helps an old man understand all of this new stuff.  Sure was easier in the "old" days of just paying cash.