Is my Installment a Negative Finance Company account?

[Anonymous]

I know I should know this, but I don't. How do I differentiate the difference between a negative finance company and a positive finance company on my credit report.

Mine show up as: Installments
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Installment account:
Individual Account
Installment Term - 60 months
Type of loan - (Secured), (auto) or (line of credit).
Remark: (Closed) or (blank).
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How does this differ from a Finance Company account since installments are finance company accounts right?

Would it say *Finance Company* instead of *Installment*?

If it is just a negative code attached to the installments when the loan is opened, how do we know it is lowering the score. What is different on the credit report. Please can someone explain and show me an example. Thank you!

Message Edited by ilovepizza on 06-14-2007 08:40 PM

[MidnightVoice]

Someone more experienced than I said:

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Tuscani wrote:

Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes.

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Also, the slide show that is linked here:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=4709

strongly indicates that the new FICO calculator will be differentiating between Prime and Subprime loans in a lot of areas

[Anonymous]

Thanks for the reply. I was just worried because some people had their installment account improperly marked as Consumer Finance Company. For example, one person here had an auto loan from Cap1 or Citi (something like that) marked as a Consumer Finance Company loan, when it was a low rate auto loan. I was wondering if there is something to look for in case it is marked as a mistake.

[Anonymous]

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ilovepizza wrote:
I know I should know this, but I don't. How do I differentiate the difference between a negative finance company and a positive finance company on my credit report.

Mine show up as: Installments
------------------------------------------------------
Installment account:
Individual Account
Installment Term - 60 months
Type of loan - (Secured), (auto) or (line of credit).
Remark: (Closed) or (blank).
------------------------------------------------------

How does this differ from a Finance Company account since installments are finance company accounts right?

Would it say *Finance Company* instead of *Installment*?

If it is just a negative code attached to the installments when the loan is opened, how do we know it is lowering the score. What is different on the credit report. Please can someone explain and show me an example. Thank you!

Message Edited by ilovepizza on 06-14-2007 08:40 PM

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From my personal experience since I have one on my report that I have paid on time every time for more than a year, all three bureaus view it differently.  My TU score is 746 and lists that loan as a positive saying  that I have a good collection of different credit.  EX score is 731 and lists it as my #1 negative.  EQ score is 744 and doesn't list it either way so I don't know how its affecting me.

[Anonymous]

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@Anonymous wrote:

From my personal experience since I have one on my report

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What does it look like on your credit report. Does it show up as installment, ect. Does it specifically say Finance Company, and where does it say this. Is there any way you can copy the info from your credit report and remove account numbers and paste it here. I just want to see what a consumer finance company look like on a credit report. I have never seen one. I am under the impression that a consumer finance company looks like a regular installment and the only way to identify it was a score drop? Help! Thank you.

[MidnightVoice]

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ilovepizza wrote:

What does it look like on your credit report. .

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My report from my Mortgage refi said  "00006 Too many consumer finance company accounts"

My actual credit reports said nothing.

And EQ seemed less worried than the other two

[Anonymous]

There is no bill board sign alerting me that this will effect my scoring positively or negatively. And while 1 or 2 might not hurt, even help, too many can have the opposite effect. I did learn something. Thanks

[MidnightVoice]

The Fair Isaac slide show indicates that FICO scoring is, or will be, differentiating between prime and subprime loans for CCs, mortgages and auto loans 

The risk factor is about double for the sub primes

[chartley3]

And that is complete BS too. Its a new way for the banks to screw us. If someone is paying on time with a mortgage or installment long it should not matter if its subprime or prime. I take this to mean they dont want people to improve their scores or get better rates.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

From my personal experience since I have one on my report

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What does it look like on your credit report. Does it show up as installment, ect. Does it specifically say Finance Company, and where does it say this. Is there any way you can copy the info from your credit report and remove account numbers and paste it here. I just want to see what a consumer finance company look like on a credit report. I have never seen one. I am under the impression that a consumer finance company looks like a regular installment and the only way to identify it was a score drop? Help! Thank you.

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Sorry I tried copying it but the site said it contained to many characters.  I checked true credit and the account was by itself listed under installments.  It didn't have the opening balance on it but listed the current balance, said the account was secured by goods, date it was opened, said current and account open and green blocks with payment history

On credit expert which is provided by ex the account was listed first because they list all accounts together by alphabetic order.  It had acct status current balance, monthly payment, secured by household goods, loan term and payment history