Line of Credit Fico Scoring

[Anonymous]

As I was going over my credit report this week, I noticed that an account from HFC was coded as a Line of Credit Account. All of my other accounts are either coded as Installment accounts (auto loan & student loans) or Revolving Accounts (credit cards).

Here's my question, is the line of credit account figured using utilization like the revolving accounts or treated like an installment account for fico scoring? My line of credit account shows a credit limit of $4500. It had a balance of at $4399 and I just paid it off today. I was wondering if that would help my fico score.

One other note, when I called to talk to the customer service rep about the payoff amount, he told me that if I didn't use the account for 6 months that they would automatically close the account. I had some credit card accounts during 2007/2008 time period where HSBC did that to me (don't miss them) but I didn't know that was still happening.

Thanks in advance for your insight!

[Revelate]

Generally LOC accounts are counted as revolving; however, in some cases large balances get reported as installment (heard report of this on a 35K LOC, never anywhere close to the 10K or under range your line is in).

As for accounts being closed or other adverse-action being taken against the consumer. while the largest wave of that has past, banks are still cutting risk where they can; an inactive account (unless it has an annual fee large enough to justify their keeping it open) is one they're likely not making money on currently, and may not in the future either.  Hence, they may close it to reduce their reported exposure if it's not profitable.

[Anonymous]

I signed up yesterday at USAA's credit monitoring service. Both Experian and Equifax are including this account balance in the revolving credit category along with my credit cards. Transunion is not and is actually putting this account balancet into a separate category titled Other.

[llecs]

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@Anonymous wrote:

I signed up yesterday at USAA's credit monitoring service. Both Experian and Equifax are including this account balance in the revolving credit category along with my credit cards. Transunion is not and is actually putting this account balancet into a separate category titled Other.

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Per FICO scoring, it's still included for TU. USAA's service doesn't use FICO and it isn't uncommon to see accounts mis-classified in terms of utilization or type. However, the report content is good.