I wanted to start building business credit so I figured I would get a small loan and repay quickly. I was in no need of cash flow etc at the time so when I went to my bank cap one and apply I asked for 3k they said that they minimum was 10k I had no need for that much so I started looking around for smaller loans. I came across a company called accion east. I did some research they were local here in NYC and they did micro lending so I figured this might work. I was informed that my lain would be reported on my personal credit as well as to business I was cool with this applied. They pulled EQ I was approved for 3800 I choose a short 19month term my total repayment was 4090$ with a fico EQ of 724 at time of approval. Now here in the kicker fast forward two payments later everything is cool I got a idea to see if I can app for a Amex business card and maybe a ink from chase. I decide to look at my EX first as I believe that's what would be pulled by both lenders so I buy a report from myfico and I see a negative indicator on the credit at a glance section. It's says consumer finance I look at the explanation at it say consumer finance loan are look at by fico as loans for people with bad credit so they carry a negative impact to your fico score. Then in the other side of good indicators say excellent payment history(never late). Great use of credit you use a mix of credit that is positive to your fico. The mix is this loan as before I only had revolving account no auto morgage, are store cards just prime credit cards and a secured card from BofA.
will this affect my chances at Amex are chase I was more interested in the Amex blue for business are a SPG Amex my EX was 681 but I expect it to go up any day now as my discover card balance was reduced to 0 from 1411 which would leave my cap one card the only card out of 5 reporting a balance of 6% of the card limit and 1 percent overall.
im kind of peeved by this as I had no idea this would be reported as a such. Before this I didn't even know what a consumer finance loan was.
