08-23-2012 10:52 AM
I'm considering using GE Capital 0% financing for a mattress purchase. I understand the drawback of a HP and new acct on my CR, which will probably end up closed in a couple of years.
My concern is if GE Capital is considered a Consumer Finance Loan, which can have a negative impact on the CR. Here's a video I saw: http://www.youtube.com/watch?v=imwWmxoS74I
I'm not clear as to whether or not a GE Cap mattress financing would be considered a CFL because some posted that it was revolving. So, can it be both? If I used GE Cap 0% financing would it have the negative impact of a CFL on my CR?
It's ironic that I finally have good enough credit to qualify for something like that and may not be able to do it because I don't want the negative impact on my CR!
08-23-2012 11:26 AM
That's a good idea. I don't know why it never even occurred to me! Thanks.
08-23-2012 04:13 PM
I think it's revolving... and GECRB is pretty generous with limits in its consumer financing. If anything, a higher limit with GECRB will help you with your util.
08-23-2012 04:16 PM - edited 08-23-2012 04:17 PM
only bad thing about doing that is if GE gives you just enough to purchase the mattress you want and the account is considered Revolving, then it will appear to be "maxed" out on your credit reports and then it will have negative impact on your Credit scores....just a thought
08-23-2012 05:42 PM
I'd like to hear opinions on this topic too. Not that I am in the market now, but I'd love to know whether this type of loan would hurt scores and would it only be while the loan is active? Under what area does FICO consider this score a negative in?
Also , can it be both revolving and a CFL? I would think not but uncertain.
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