How Can a Score Drop So Suddenly

[Junejer]

Maybe the HELOC shouldn't be so modest Matt. If it is greater than about $50M (thousand), it will report as an installment. Your CCs will take care of your revolving mix.

[Anonymous]

My 50K HELOC does not show or scored as installment - it is just IGNORED

---

ByrdMan wrote:
Maybe the HELOC shouldn't be so modest Matt. If it is greater than about $50M (thousand), it will report as an installment. Your CCs will take care of your revolving mix.

---

[Junejer]

Timothy, it doesn't show at all on the reports or it shows and is just ignored?

[Anonymous]

The good news is, from what I've read, score drops from "no mortgage" tend to recover over time. There's a certain element to the FICO scoring system that's just biased against change, period.

[haulingthescoreup]

My $50K HELOC displays as mortgage on EQ, revolving on EX, and line of credit on TU. But there's no way that it's being scored as revolving, or I'd be getting killed on util, and all three scores are about the same. TU even shows it as part of revolving on my FICO reports, but again, the scores don't reflect this.

I think this is what Timothy meant by "ignored." They are listed, but they are apparently not crunched.

[Junejer]

Cool. Got it.

[Anonymous]

DO NOT TAKE OUT A LOAN SIMPLY TO IMPROVE YOUR FICO SCORE.

If you are not otherwise seeking credit, and have a house already paid off, what's the point?  Are you willing to pay lots of interest $$ just to get points on your score?

That is NOT SMART FINANCIALLY.

FICO is NOT the end all be all.

[Anonymous]

D@mn your good.

---

haulingthescoreup wrote:
My $50K HELOC displays as mortgage on EQ, revolving on EX, and line of credit on TU. But there's no way that it's being scored as revolving, or I'd be getting killed on util, and all three scores are about the same. TU even shows it as part of revolving on my FICO reports, but again, the scores don't reflect this.

I think this is what Timothy meant by "ignored." They are listed, but they are apparently not crunched.

---

[MattH]

---

@Anonymous wrote:

DO NOT TAKE OUT A LOAN SIMPLY TO IMPROVE YOUR FICO SCORE.

If you are not otherwise seeking credit, and have a house already paid off, what's the point? Are you willing to pay lots of interest $$ just to get points on your score?

That is NOT SMART FINANCIALLY.

FICO is NOT the end all be all.

---

Well, it's gonna take five or ten years to pay off this mortgage -- much faster than making only the regular scheduled payments, but still some years -- so I don't need to make this decision any time soon...

[Junejer]

Financially, there's nothing wrong with having a HELOC at your disposal. That's your equity, so why not have it there at your disposal if you need it, as opposed to an emergency coming up, then you have to scramble and beg the bank for a loan to tap your equity.

I will always have a HELOC at my disposal, no matter what.