@0REDSOX7 wrote:TRC_WA, I would post a photo of my credit report to prove you wrong, but, I don't feel the need to go that route, because my credit union didn't give me a bunch of "fluff" - it was on the credit report she printed out and gave to me.
... and I can post one of mine but I'm not gonna argue about it. 
We can go back and forth all day long...
https://answers.yahoo.com/question/index?qid=20120405122620AA6zLtg
"Consumer finance companies" are different types of companies compared to regular banks and credit unions. A consumer finance company is typically for those who have bad or no credit and cannot get approved for a loan with their bank or credit union. Consumer finance loans generally have much higher interest rates then loans offered by regular banks and credit unions.
Several examples of consumer finance companies is OneMain Financial (formerly known as CitiFinancial), Wells Fargo Financial and 2nd Chance Finance (notice the word Finance/Financial in the companies names)
Just as I said in my previous reply.
Sorry... but a Walmart or Target credit card don't fall under this definition... regardless of what your CU says or your CR says. I suppose they can have their own internal definition however... nothing stopping them from classifying an account however they want when it comes to their lending criteria.
@0REDSOX7 wrote:
I have an Amazon and Target card with a combined limit of 5,000 - and on the top of my credit report, they have a summary that lists out what type of accounts, and right there it is - Consumer Finance Accounts - 2 Accts / 5,000 CL / 5,000 AV. It lists my other revolving accounts (VISA and MC) as just that, revolving accounts.
I wouldn't put a lot of stock into what Equifax says... LOL
@DaveInAZ wrote:
Well, CUs can do things a little differently. For example in Feb I got a $10k auto loan from my local CU, but according to my CRs I've never had a car loan - the CU reports it as a 'secured loan', as if it were one of those credit rebuilder loans secured by a $$$ deposit..
TRC's post does ring a bell in that when I had a Prosper loan my TU FICO always had the message "too many consumer finance accounts" (only had the 1), and as soon as I paid it off the message disappeared.
Thanks Dave.
@0REDSOX7 wrote:TRC_WA - fair enough.
I appreciate what you posted because it is correct.
I just know on here, we advocate using credit unions as sources to rebuild after bankruptcy, and the three that I have experience advise not having more than 50% of your issued credit come from store cards or consumer finance accounts.
I think that is fair and solid advice.
I agree. CUs all the way... love my BECU.
Also, I agree about not having too many. I've never supported store cards. I have 2... Best Buy and Nordstrom (3 if you count CareCredit?). All are high limit $3500+.
I definitely don't believe in a wallet full of $200 toy limit Target and Pep Boys cards... in the end the accounts do more harm to your profile than good. Sure they may be great for starting a rebuild but once you get a solid profile you are better off closing the toy limit store cards.
I don't support the SCT either.
The only point I was trying to make is store cards are not consumer finance accounts... at least going by the textbook definition.
@TRC_WA wrote:
@0REDSOX7 wrote:TRC_WA - fair enough.
I appreciate what you posted because it is correct.
I just know on here, we advocate using credit unions as sources to rebuild after bankruptcy, and the three that I have experience advise not having more than 50% of your issued credit come from store cards or consumer finance accounts.
I think that is fair and solid advice.
I agree. CUs all the way... love my BECU.
Also, I agree about not having too many. I've never supported store cards. I have 2... Best Buy and Nordstrom (3 if you count CareCredit?). All are high limit $3500+.
I definitely don't believe in a wallet full of $200 toy limit Target and Pep Boys cards... in the end the accounts do more harm to your profile than good. Sure they may be great for starting a rebuild but once you get a solid profile you are better off closing the toy limit store cards.
I don't support the SCT either.
The only point I was trying to make is store cards are not consumer finance accounts... at least going by the textbook definition.
TRC and Dave are 100% correct. Store cards are not consumer finance company cards for FICO scoring. That said, I totally agree about not having too many store cards. Maybe one or two for credit mix and if you get a tangible benefit like free FICO, 5% off, free financing, free shipping, etc.
There are 6557 credit unions in the USA. There are about 14K McDonald's in the USA. So there is roughly one CU for every two McDonald's -- and that's CU companies, not branches like the McDonald's number!
My point is that CU employees are typically poorly paid and not very experienced, at least the frontline branch people. They are notorious for giving out bad advice, like "close out all your credit cards and it will help your score and we will give you a car loan."
I absolutely love credit unions and think they are the best gift there is to those of us with BK's. They are the most forgiving and the most reasonable. Just take some of their generalized advice with a grain of salt because they don't know what they are talking about.
Also many of the smaller, local CU's have their own little pet peeves. If you listened to one and believed that what they say goes for the others, you would be so wrong.
So agree that any finance company loans are bad, more than a couple of store cards is bad (unless there is a very good reason), credit unions are way better than banks for people who have had credit problems in the past.
@CH-7-Mission-Accomplished wrote:
TRC and Dave are 100% correct. Store cards are not consumer finance company cards for FICO scoring. That said, I totally agree about not having too many store cards. Maybe one or two for credit mix and if you get a tangible benefit like free FICO, 5% off, free financing, free shipping, etc.
There are 6557 credit unions in the USA. There are about 14K McDonald's in the USA. So there is roughly one CU for every two McDonald's -- and that's CU companies, not branches like the McDonald's number!
My point is that CU employees are typically poorly paid and not very experienced, at least the frontline branch people. They are notorious for giving out bad advice, like "close out all your credit cards and it will help your score and we will give you a car loan."
I absolutely love credit unions and think they are the best gift there is to those of us with BK's. They are the most forgiving and the most reasonable. Just take some of their generalized advice with a grain of salt because they don't know what they are talking about.
Also many of the smaller, local CU's have their own little pet peeves. If you listened to one and believed that what they say goes for the others, you would be so wrong.
So agree that any finance company loans are bad, more than a couple of store cards is bad (unless there is a very good reason), credit unions are way better than banks for people who have had credit problems in the past.
Very good info.
I would disagree about a couple of items on your list. It can be a good move financially to combine student loans esp if you end up getting a better rate on the new loan. It can also lower your monthly payment and certainly make the loan easier to pay back. I have opened up quite a few accts since my BK was d/c including a couple of store cards. My scores have gone up and are now in the 685-710 range. I agree that having a low UT and paying off your CC every month are good ideas. Also paying all accts timely with NO late pays is a must!
Can someone tell me what early exclusion in bk is? Does it apply to both types or just 13?
Starting Score: 633