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Has anyone used Samsung Financing?

Community Leader
Senior Contributor

Has anyone used Samsung Financing?

I get a deal on a pre-ordered Note8 and there is a 0% option with samsung finance. I won't use the option if it is either an HP or reports to CR's. Any experince?

 

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Message 1 of 15
14 REPLIES
Moderator

Re: Has anyone used Samsung Financing?

No experience but can almost guarantee that's there will be a HP and most likely report.

Message 2 of 15
Community Leader
Senior Contributor

Re: Has anyone used Samsung Financing?


Irish80 wrote:

No experience but can almost guarantee that's there will be a HP and most likely report.


  Thanks Irish

 

  I did more research and found " Samsung Financing Program Account issued by TD Bank, N.A."

 

  TD bank = HP and I am firmly planted (9 months app free / 1 account in the last 15 months) so I just shelled out the cash. Will have the phone Oct 8.


Message 3 of 15
Valued Contributor

Re: Has anyone used Samsung Financing?

I have phones financed with AT&T with their Next program and they were not a HP and do not show up on my reports.

Message 4 of 15
Regular Contributor

Re: Has anyone used Samsung Financing?

If not in a hurry to buy a phone, wait for a few more weeks and buy a new one with a large discount on black Friday...


Current:::::::::::::EX8=740, EQ8=740, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Uber, Walmart/Synchrony.
Message 5 of 15
Community Leader
Senior Contributor

Re: Has anyone used Samsung Financing?


xenon3030 wrote:

If not in a hurry to buy a phone, wait for a few more weeks and buy a new one with a large discount on black Friday...


  Probably the smart thing to do. But, anyone who owned the (exploding) Note 7 get's a little extra from Samsung on a pre-order. Not enough in my book but It's done.

 

  Thanks for the reply


Message 6 of 15
Senior Contributor

Re: Has anyone used Samsung Financing?

Not only would this be a HP and result in the account reporting to the CRAs, but there's a very good chance that it would be coded as a consumer finance account. These types of accounts can have long lasting negative impacts on your credit score
Message 7 of 15
Regular Contributor

Re: Has anyone used Samsung Financing?

Why does a consumer finance account degrade Fico score? Is it also the case if purchasing phones, etc. from some carriers like Verizon or AT&T (monthly payments requiring HP)?


Current:::::::::::::EX8=740, EQ8=740, TU8=760.
12 month goal: EX8=800, EQ8=800, TU8=800.
AMEX BCE, AMEX PRG, AMEX HH, BOA CR, BOA Better CR, BOA PR, BOA TR, Chase AMZ, Chase Freedom, Discover CR, Uber, Walmart/Synchrony.
Message 8 of 15
Senior Contributor

Re: Has anyone used Samsung Financing?

CFAs have historically been viewed as "last resort" lines of credit, even if that isn't really the case today.  As a result, they are adversely looked upon by the FICO algorithm.  Many people have reported the negative reason code, "Presence of a consumer finance account" as a factor hurting their score.

 

If one is considering a purchase at a store and taking on a CFA to do it, they're better off using a 0% CC offer or similar means to make the purchase.  Same end result cost wise, but not long lasting negative impact to your credit scores.  Some feel that CFAs can even adversely impact score after the account is closed, as long as it is still on your credit report.  This means that for 10 years following the closure of a CFA in theory it could still be negatively impacting your score.

Message 9 of 15
Moderator

Re: Has anyone used Samsung Financing?


xenon3030 wrote:

Why does a consumer finance account degrade Fico score? Is it also the case if purchasing phones, etc. from some carriers like Verizon or AT&T (monthly payments requiring HP)?


No, because those payment arrangements do not report as an account to the CRAs, therefore it can not be considered a CFA

Message 10 of 15