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Established Contributor
Posts: 565
Registered: ‎05-01-2007
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Credit Report Information In General

A lot of people still do not understand the other certain information on their credit report. There are two things that a lot are not aware of. The first thing is that there are certain accounts, that even though you went through a bank on, are coded as a finance company. This is also credit risk code #6 which will have some what of a negative impact on the score. The other thing is the risk codes that in the credit report when a lender uses them. It shows the codes but it does not state what they are. And in regards to the credit report they are the factors in why your credit rating is lower. You definitely do not want # 39 or #40 because they relate to a collection account, bankruptcy, public record. etc.  #19 date of last inquiry is too recent. Or #11 amount owed on revolving accounts is too high. Help is not too far away. There could be a book or publishing that will list what creditors & their types of accounts are coded as a fiance company. Regardless of what information that you do obtain you will still need to do certain things in order to get a high credit rating on on your report. These includes no adverse information, allowing your accounts to age, minimal or no inquiries, 0-9% utilization on each credit card or the overall credit card accounts combined together. So even if you knew everything you would still have to wait for the accounts to age and so & so forth. One last note, having an open installment loan with an open revolving account will give you a better credit rating compared to if you just had the credit card by itself. But is also depends on what other things are on your credit report such as mixes of the different types of credit.

Valued Contributor
Posts: 3,022
Registered: ‎08-13-2009
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Re: Credit Report Information In General

Thank you for sharing!  Smiley Happy 


Will you be writing that much awaited for book explaining all the stuffs?   


Do you know how we, the consumer, can find out how things are coded on our CR?

Established Contributor
Posts: 560
Registered: ‎09-29-2012
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Re: Credit Report Information In General

Whats the diff b/w a bank and a finance company?  And why would a finance company be seen as a bad thing?


Are they not the same?  Or rather, don't they accomplish the same?  So whats the big deal then?

Community Leader
Epic Contributor
Posts: 29,741
Registered: ‎03-19-2007
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Re: Credit Report Information In General

Back in the pre-internet day, many rural consumers were pretty much limited to local finance companies for credit. They usually offer credit at less favorable terms than the major banks.


Today, with any consumer having the abililty to contact and app with larger financial institutions, which usually offer lower rates and better terms, use of a consumer finance company is viewed as a negative reflection that they could not obtain more favorable credit.

Regular Contributor
Posts: 121
Registered: ‎07-14-2009
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Re: Credit Report Information In General

IOBA wrote:


Do you know how we, the consumer, can find out how things are coded on our CR?

On the CR my mortgage lender shared with me, there are risk score reason codes listed below each of the three scores.


There is a listing of these codes and their meaning here on the forum in this thread.

FEB 2014 EQ: 798 EX: 780 TU: 798

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