HELOC = Home Equity Line of Credit. It's a credit line tied to the equity in your home. You can tap into it, pay that off, get more, etc. It can be dangerous if you use it to shove over CC debt and then pretend like you don't owe anything anymore. It's different from a home equity loan, which is a fixed amount that you get all at once and pay back in regular equal installments.
The CRA's are greatly divided on how to treat HELOC's. They're sort of revolving, because they don't have fixed monthly payments, but they're also mortgage loans, in that they are tied to your equity in your home which you can lose if you don't behave. So EX classified it as a mortgage, TU as an "account in which the exact category is unknown", and EQ flip-flops between calling it a mortgage on one screen and revolving on another.
Message Edited by haulingthescoreup on
10-08-2007 07:32 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
