Gah! Credit report took a hit because I restructured mortgage

[spidey07]

Holy crap! My score dropped like a bomb because I restructured my mortgage into an 80/15/5. Now the 2nd mortgage is being reported as revolving credit and killing me!!!! That's an installment load, not revolving right?

WTF?

I'm getting on the horn.

 

[Hoober]

Depends on the type of second, Spidey. Our second was a line of credit and so it was reported as "Secured, Revolving."

 

[conjur]

You are teh fux0r3d!

 

[Vic]

Is it a HELOC (Home Equity Line of Credit)? Those are revolving, although secured. Who holds it?

 

[spidey07]

Originally posted by: Vic
Is it a HELOC (Home Equity Line of Credit)? Those are revolving, although secured. Who holds it?

yeah, HELOC. Irwin has it.

Conjur - bite me. I'm ticked.

I went from A+ to B.

Vic you want it? The 2nd that is.

 

[spidey07]

Called irwin union. They said it is kind of strange and they have seen this scenario harm other credit before.

The 2nd mortgage is indeed a 2nd mortgage but because of the variable rate it is reported as revolving credit. I'm gonna see if I can get it switched over. Bummer part is even after it is switched it might take a while to change on the score.

Appartently because I have little to no installment credit (gee, sue me for paying installment loans properly and on time) and the majority is revolving (with a large balance because the 2nd mortgage is almost all of it) that I'm getting slammed.

 

[Hoober]

Originally posted by: spidey07
Called irwin union. They said it is kind of strange and they have seen this scenario harm other credit before.

The 2nd mortgage is indeed a 2nd mortgage but because of the variable rate it is reported as revolving credit. I'm gonna see if I can get it switched over. Bummer part is even after it is switched it might take a while to change on the score.

Appartently because I have little to no installment credit (gee, sue me for paying installment loans properly and on time) and the majority is revolving (with a large balance because the 2nd mortgage is almost all of it) that I'm getting slammed.

My wife and I are in the middle or refinancing because we saw the same thing on our credit reports. Our score took a digger when we opened the second mortgage because it was technically a revolving line of credit and the balance was very high. So hopefully after we refinance and get rid of that credit line our scores will jump.

 

[conjur]

Bummer...that will hurt in getting a new car. Who knows how long it will take to get it corrected, too.

 

[spidey07]

Originally posted by: conjur
Bummer...that will hurt in getting a new car. Who knows how long it will take to get it corrected, too.

That's the thing. Any lease or finance I do thru my credit union the APRs are based strictly on my credit score. Difference between A+ and B is like 3.75 to 5.5%.

homey don't play dat.

Irwin is looking into what they can do.