Loan Type Reporting Inaccurate

[Thunderseven]

I have a $10K loan with my FCU that is being reported as a revolving account which is making it appear as though I'm using 89% of my available credit based off the amount I have paid off.  Can the type of loan be changed to an installment type on my CR to lower my percentages?  I don't understand why this is reporting as revolving anyway.  Any thoughts?

[cadavis0609]

Are you sure that it is set up as an installment loan and not a LOC?

[Thunderseven]

Good point.  If it is a LOC, I wonder if it would be beneficial to have it changed to an installment loan to bring my percentages down?

[Anonymous]

If you are sure it is reported in the wrong way, send a letter to the reporting entity to notify them it is a violation of FCRA to report incorrectly and politely asking them to fix within a given timeframe.

if they don't act, you send them an ITS letter. They don't move, you sue them in Small Claims court for violation of FCRA and ask $1,000 per month reported incorrectly - limited to the Small Claim cap in your jurisdiction.

That should get their attention.

[Thunderseven]

I have a call into my FCU to see if it is in fact an installment loan or a LOC.  When I applied for it, I applied for an installment plan.  So it could be a problem here and not at the CRA's.  I'll keep you posted.  Thanks!!!

[MidnightVoice]

I have a HELOC with my CU.  They report it the same way to each CRA, and each CRA treats it differently.

Telling that to the CRA does not seem to help much - EX thinks it is a credit card!

[Thunderseven]

I'm sure mine isn't a HELOC since I didn't own my home at the time I applied.  But I'll keep you all posted with what I do find out.  Thanks!!!

[Thunderseven]

Well, I spoke to the Branch Manager at my FCU and was told that it should be reporting as an installment loan and not a revolving account.  She said I will need to contact their loan officer to get it changed, but that it shouldn't be a problem.  My question now is, what affect will changing the loan type have on my score?  My percentages will change for the good, but I'm concerned about the date updated.  Will this hurt my score?  I look forward to hearing from anyone on this.  Thanks!!!

[RobertEG]

It will clearly have a positive affect on your score.  It will delete the high revolving %util from your scoring.  Installment %util has minimal impact on scoring.  It will also add an installment loan to your credit mix, which will help the type credit in your scoring.

The date will still be the date opened, and thus not impact your age of the account.

Good work! 

Message Edited by RobertEG on 10-27-2008 10:04 PM

[Thunderseven]

Robert,

Thanks for the info.  After reading your response, I emailed my loan officer and branch manager asking them to contact the CRA and have the loan type changed to an installment loan.  I should hear something from them tomorrow.  I'll let you know what they say.

Thunderseven