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HELOC: Factored in to Revolving Utilization?

Focker69
Regular Contributor

HELOC: Factored in to Revolving Utilization?

Hello,

 

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

 

Many thanks in advance!!

Hoping to hit 700 soon!
5 REPLIES 5
aj2121
Frequent Contributor

Re: HELOC: Factored in to Revolving Utilization?

Excerpt from the Primer, which is worth checking out if you haven't done so already:

 

HELOCs should factor as revolvers on Score 2/3, if they are below the revolver dollar cutoff. 

However, HELOCS don't appear to factor on 5/4 (there were rumors of an update, funny how it factors on 3).

On 8/9, HELOCS factor separately and as a ratio to all revolver balances in version 8 at TU and EX. See Codes 62 and 64.

FICO8 as of 4/9/21:
Message 2 of 6
SouthJamaica
Super Contributor

Re: HELOC: Factored in to Revolving Utilization?


@Focker69 wrote:

Hello,

 

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

 

Many thanks in advance!!


Sometimes they report as revolving accounts, sometimes as mortgages.  It depends on the lender.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 3 of 6
aj2121
Frequent Contributor

Re: HELOC: Factored in to Revolving Utilization?


@SouthJamaica wrote:

@Focker69 wrote:

Hello,

 

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

 

Many thanks in advance!!


Sometimes they report as revolving accounts, sometimes as mortgages.  It depends on the lender.


What lenders report a HELOC as a mortgage? All HELOCs that I am aware of report as a revolving account, since they are a revolving product. A home equity loan I am sure could report as either a mortgage or an installment loan.

FICO8 as of 4/9/21:
Message 4 of 6
SouthJamaica
Super Contributor

Re: HELOC: Factored in to Revolving Utilization?


@aj2121 wrote:

@SouthJamaica wrote:

@Focker69 wrote:

Hello,

 

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

 

Many thanks in advance!!


Sometimes they report as revolving accounts, sometimes as mortgages.  It depends on the lender.


What lenders report a HELOC as a mortgage? All HELOCs that I am aware of report as a revolving account, since they are a revolving product. A home equity loan I am sure could report as either a mortgage or an installment loan.


I don't know, I've never had one. But I have seen many reports in this forum by people whose HELOC reported as a mortgage. E.g., :

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-Reporting/m-p/4773335#M199758

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-reporting-as-Revolving-CC/m-p/63591#M1850

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/experian-reporting-HELOC-as-revolving/m-...

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-is-reporting/m-p/137537#M6634

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/HELOC-Reporting-for-FICO/m-p/561985#M404...

 

 


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 5 of 6
aj2121
Frequent Contributor

Re: HELOC: Factored in to Revolving Utilization?


@SouthJamaica wrote:

@aj2121 wrote:

@SouthJamaica wrote:

@Focker69 wrote:

Hello,

 

I've been wondering if anyone has any clarity on whether or not a HELOC which is a revolving instrument is factored into the utilization % of Major Fico scores. And if it is, is it the same on all versions? What about 5,4 and 2?

 

Many thanks in advance!!


Sometimes they report as revolving accounts, sometimes as mortgages.  It depends on the lender.


What lenders report a HELOC as a mortgage? All HELOCs that I am aware of report as a revolving account, since they are a revolving product. A home equity loan I am sure could report as either a mortgage or an installment loan.


I don't know, I've never had one. But I have seen many reports in this forum by people whose HELOC reported as a mortgage. E.g., :

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-Reporting/m-p/4773335#M199758

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-reporting-as-Revolving-CC/m-p/63591#M1850

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/experian-reporting-HELOC-as-revolving/m-...

https://ficoforums.myfico.com/t5/Mortgage-Loans/HELOC-is-reporting/m-p/137537#M6634

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/HELOC-Reporting-for-FICO/m-p/561985#M404...

 

 


Thanks for the links! I hadn't seen those before. Interesting how the HELOC reporting seems very inconsistent. 

FICO8 as of 4/9/21:
Message 6 of 6
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