I have an Equity line (not loan) being treated as a revolving account on my FICO score. As you know, high total revolving account balances can sink your score. Discussed with bank today who said nothing could be done. Treatment as revolving is required by law according to them. I am considering conversion to a straight loan (installment) to avoid the "revolving" treatment. That is, if I don't take an interest rate hit. Any advice?
An equity line of credit is a revolving account. Revolving just means that you can borrow more money against it, until you reach the credit limit. If the loan (and it is a loan) has a conversion option, odds are that the conversion is at a higher rate. Most of these conversions close the line to further draws.
