is furniture store financing report as an installment or CC

[Anonymous]

I ordered some furniture and the store financed through wells fargo and I was wondering is this going to be an installment loan or show up as a CC that i need to worry about uti. of the amount?

[cdtotten]

Each lender is different ; you need to be very careful though. Some furniture stores such as Ashley can show up as a CFL which is not a good thing.

[Anonymous]

this lender uses wells fargo does anyone have an idea how they show up? It looks like from the paperwork it was a credit card but I figured someone on here would know how it reports. I was alittle nervous to sign up for it, but I dont have many open accounts and its zero interest for 24 months ( i will be paying early since ive read about they will add interest if you dont pay before 24)

[haulingthescoreup]

When it hits your credit reports, it will say whether it's revolving or installment.

More and more furniture financing programs have started reporting as revolving, so that's what it will probably be.

If it shows up as installment, it won't affect your revolving util, either for good or for bad. And installment util is a very very minor FICO scoring factor.

However, if it does show up as installment, it will probably be considered a "consumer finance account", which can knock a few points off your scores. If it's revolving, it won't be a CFA, period. CRA's have to be coded as installment to be labeled CFA's.

Hope that didn't confuse things even more.

[Anonymous]

thanks that does help! I guess I will have to wait and see how if shows up. I hope it shows up installment so it doesnt mess up my util. ratios.

[vish1]

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@Anonymous wrote:

thanks that does help! I guess I will have to wait and see how if shows up. I hope it shows up installment so it doesnt mess up my util. ratios.

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Depends on how you read it. Util mess up is very short lived while a CFA mess up is much much longer.

These are just my 1.5 cents, YMMV

[Anonymous]

oh I didnt know CFA would mess up more than the util. Thanks for all the good info!

[Anonymous]

well just to update wells fargo financial does show up as revolving. If all my other revolving accounts are at zero will it hurt my uti ratio as bad? I only had two open revolving accounts so I know I needed something else to build back credit history. Wondering if I should pay this down quick for lowered uti ratio or make payments to show payment history.....any thoughts?

[haulingthescoreup]

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@Anonymous wrote:

well just to update wells fargo financial does show up as revolving. If all my other revolving accounts are at zero will it hurt my uti ratio as bad? I only had two open revolving accounts so I know I needed something else to build back credit history. Wondering if I should pay this down quick for lowered uti ratio or make payments to show payment history.....any thoughts?

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Without going back and re-reading the whole thread (sorry!), here are my thoughts:

Personal finance beats FICO scoring strategy any day. If this is a 0% offer, and you aren't getting ready to apply for anything else anytime soon, then the heck with it, drag your payments out for the duration.

As to your util, what is your total CL (including this account), and what is reporting (including this account)? You say that your other accounts report $0, which is great, but this is a division problem: total reported balances divided by total CL. If you have a high total CL, this probably won't have much impact. If you don't have a lot of credit, this might result in a ding. But again, util is a temporary issue, changing every time another account updates. If you aren't in the market for new credit, high util for this account isn't a problem, and it will be less of a problem every month as you pay down your balance.

[Anonymous]

thanks haulingthescoreup! My credit lines arent very high so I will add all of them up and may pay a chunk on the furniture so the ratios arent high then pay the rest to show on time payments! thanks so much for the help