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Senior Contributor
Posts: 3,318
Registered: ‎05-05-2011
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Effect of GE Capital on CR

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! :smileyfrustrated:

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EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Valued Contributor
Posts: 3,096
Registered: ‎01-26-2012
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Re: Effect of GE Capital on CR

Other option is to get 0% card.

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Senior Contributor
Posts: 3,318
Registered: ‎05-05-2011
0

Re: Effect of GE Capital on CR

That's a good idea. I don't know why it never even occurred to me! Thanks. :smileyhappy:

 

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EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Senior Contributor
Posts: 6,242
Registered: ‎08-16-2012
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Re: Effect of GE Capital on CR

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.

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Mega Contributor
Posts: 15,436
Registered: ‎04-09-2011
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Re: Effect of GE Capital on CR

I agree with going for the card, you should be good with getting a high CL.



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Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
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Established Contributor
Posts: 912
Registered: ‎06-14-2012
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Re: Effect of GE Capital on CR

[ Edited ]

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:smileywink:



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Established Contributor
Posts: 654
Registered: ‎06-06-2012
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Re: Effect of GE Capital on CR

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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