Line of Credit and TU FICO weirdness

[Anonymous]

My utilization is pulling my credit score down because I have an AMEX Plat card that I have been using for business that reports high balances every month.  My other cards show little or no balances.  I am aware of how to solve this by paying before statement date, but don't want to since I would essentially be giving my company a loan until the expense check comes in (btw, AMEX was willing to do a mid-month report back to credit bureau).  I am looking for an auto lease in the very near future and this high utilization is pulling my credit score down (according to myfico).

Recently, my Wells Fargo banker offered me a 400k Line of Credit at low interest rate (3%) secured by non real estate assets.  I thought LOC would add to my revolving credit and therefore solve my utilization problem as well as giving me some credit flexibility at low interest rate so I took it.  I pulled my credit reports in March with the LOC reporting.  On my TU report and score, it is still showing me at high utilization.  With my 35k AMEX Plat bill, it is showing me at 54% utilization and obviously not taking the 400k LOC into account.  On my Experian report, it shows my score is being helped by my low utilization and therefore obviously taking the LOC into account.  Wells is not reporting into Equifax.

In any case, I have listed how the Wells Fargo LOC is reported into TU via myfico below.  I noticed some weird things such as the account type (it doesn't even show the listed account type under the question mark) and loan type.  I called myfico and the rep seemed to imply because it is so new that it hasn't impacted my fico score yet regarding utilization (I think she is wrong).  So what is going on?  How can I get this to help my utilization.  Do I need to contact TU or Wells to have it reclassified and what do I ask for?  Do I just wait (assuming myfico rep was wrong)?  Or does this type of LOC not help your revolving account utilization?

Here is the info from TU report

Date Opened: Feb 2012

Loan Type: Credit Line Secured

Credit Limit: 400,000

Largested Past Balance: 0

Account Type: Overdraft/Reserve Checking Account

Account Holder: Individual

Industry: Banks

[pizzadude]

It is not clear from the details but it is possible that the LOC is reporting as an installment loan versus revolving. If that is the case then it won't be factored in.

The AMEX charge card is only factored into your utilization by the TU98 FICO version ~ all other FICO versions will be ignoring the balance. So I wouldn't worry about it unless you knew for certain that your creditor was using TU98. I would bet that your auto lenders will likely use a newer version ~ if they even pull TU at all.

[MarineVietVet]

I agree with pizzadude that this is probably reporting as an installment loan and not revolving. LOC's with a credit limit above a certain amount (I've seen varying CL's of $35,000 - $50,000 +) are scored this way.

You might contact the lender and confirm how this is being reported.

[Anonymous]

Experian seems to be treating as revolving.  Is this more of a TU thing?  What should I ask from Wells Fargo on how it is reported to TU or should I call TU.  My banker told me it was reported like a credit card, but what does he really know

[Anonymous]

Also, I got letter from Wells Fargo that said my score was affected by high utilization on revolving credit which could only mean the AMEX when I applied for the LOC.  You guys sure AMEX isn't taken into account with newer scores (btw, they used TU)?

[llecs]

It's been mentioned, but it's my understanding that all classic FICO versions will ignore the CL (and balance) when figuring util. This would also include your EX FICO. Even if it says revolving, it isn't included in util. Even though the balance isn't included in util, it is included in your overall balances, account with balance, and of course the TL factors into length of history, AAoA, etc.

The TU98 version of FICO, the one on here, will include the balance and "high balance" into CC util. Newer versions will exclude it. Maybe WF used TU98? Some lenders still use it. Or maybe they used an internal score? I don't know how non-Classic versions of FICO treat LOCs with a high limit. I assume the same.

[Anonymous]

In terms of the LOC, you guys don't think I need to work with the bank or TU to get the account type reclassified?

[pizzadude]

I don't think that you can alter the way that the CRAs classify the account ~ they have their own criteria for putting it into installment vs revolving. You could try contacting WF but I don't know if they can force it to report as a credit card account since it is a LOC.

[Anonymous]

I just want to show the account type as revolving as it does on my Experian report.

[llecs]

Even if they changed it to revolving, it wouldn't impact score.