Question for Experts. FICO is ignoring a Revolving account over 50K.

[Anonymous]

I'm looking over someone credit report with some of this weirdness. Check this out.

I found an entire Debt and CL in revolving credit area being ignored. I checked to see if it was an AU. Not. Single account owner.

Their EQ Score Power report showed: 10% debt to CL Ratio and a few thousand in revolving debt. Their CR shows a revolving trade line (credit card) CL over $50k maxed out. The math was very easy. Subtract this $50k single trade line and all balanced out.

Is it possible that this account might be seen as an installment because the credit line and or debt is over $50k. I can't explain this. Their score is close to 800.

What might have happened?

Message Edited by ilovepizza on 11-02-2007 02:19 PM

[fused]

What kind of revolving account? LOC, HELOC??

[Anonymous]

I cant tell you exactly the term for it but Ive read on these forums that you can get a loan that is like an installment loan but is looked at as a credit card. As I remember, the example that was given went on to say something like $10k and what ever you charge is deducted from the original loan like a CC, but as you pay then it gives you that much more credit again, does that make sense....I think its like an equity line, but without the house. 

[Anonymous]

What kind of revolving account? LOC, HELOC??

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Thats what it is right there, Fused has it....

[Anonymous]

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@fused wrote:

What kind of revolving account? LOC, HELOC??

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It's a regular retail credit card. They said earlier before their CLI it was hurting credit score. After CLI it stopped factoring in to score. They lost the advantage of the CL for UTL but debt was not effecting UTL either anymore. They went from $40k to just over $50k in CLI.

Updated. They have a Score Power from before the CLI. And this account was factored in to over all debt and CL Ratio. So the CLI over $50k was the change. Does this offer any more info?

Message Edited by ilovepizza on 11-02-2007 02:30 PM

[fused]

It has been rumored at another forum that when CC's reach 50K CLs strange things occur but there is really no proof of this. On the report, look at the TL and tell us the account type, be exact with wording.

[Anonymous]

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@fused wrote:

It has been rumored at another forum that when CC's reach 50K CLs strange things occur but there is really no proof of this. On the report, look at the TL and tell us the account type, be exact with wording.

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I don't know if this is proof. But they have a score power from before and after the CLI over $50k. Before reflects this accounts debt and CL, after does not reflect it at all. I am looking right at it. Their EQ CR has it shown as a "revolving" account.

Message Edited by ilovepizza on 11-02-2007 02:49 PM

[Anonymous]

I will have to update this again later on after they pay down other debt to compare an earlier score when this account was reporting as revolving. Maybe they would be better off reducing the CL to $49k to have it reporting again for UTL? Wonder if they are getting any points for an over $50k account?

This might also shed some new light on why some LOC's seem to be reflected as installments and others as revolving relating to debt and score. Maybe it's the $$ CL. Under $50k revolving, over $50k installment?

Maybe a new FICO mystery was just uncovered?

Message Edited by ilovepizza on 11-02-2007 08:24 PM

[Dawn]

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@Anonymous wrote:

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@fused wrote:

What kind of revolving account? LOC, HELOC??

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It's a regular retail credit card. They said earlier before their CLI it was hurting credit score. After CLI it stopped factoring in to score. They lost the advantage of the CL for UTL but debt was not effecting UTL either anymore. They went from $40k to just over $50k in CLI.

Updated. They have a Score Power from before the CLI. And this account was factored in to over all debt and CL Ratio. So the CLI over $50k was the change. Does this offer any more info?

Message Edited by ilovepizza on 11-02-2007 02:30 PM

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I hope someone figures this out ... even if it will only muddies the water for me. 

I have a revolving Visa credit card through my CU that is reporting as unsecured installment.  It used to report as revolving credit, but ... no more. 

My daughter also has a MC through this same CU and has a CL of $3500.  Hers also reports as unsecured installment.  Since it seems to help instead of hurt, I haven't gone any further than to ask the CU how they submit it and was told "revolving."  They seem to be baffled as to why the CRAs show it otherwise. 

However, this knowledge has driven us both to pursue obtaining at least one other major CC that we know for certain will report as revolving so we aren't faced with the comments on our CRs that infer that we aren't getting any credit for revolving lines.  Of course, we work around that by pulling out the store cards periodically ... and maybe that's all we need to do.  But ... I would like to know for sure.

[Anonymous]

Interesting theory.

Hmm, I just checked DH's ScoreWatch from over a month ago. He has one revolving CL at $50K. The balance on it and the CL are factored in to his debt to CL ratio.

Maybe the account you're looking at is being converted to a business TL?