How Much will a One Main financial Loan hurt my credit? Consumer Finance Loan

[Mario4]

Im looking for a 3k consolidation loan from One Main Financial. Other places have denied me and I cant risk another wasted inquiry. Ive heard theyre categorized as consumer finance. So that hurts your credit in some way even after paying it off. Cant find any SOLID info online about consumer finance loans affect on credit though. All info is appreciated.

Thanks in advance.

[CWESTL]

I haven't found specific informationn detailing how much consumer finance loans effect one's credit score. However, I did find the below in another myFICO discussion. I would stay away from consumer finance loans at all costs. Consumer finance loan fees are generally exorbitant and will often only worsens one's financial situtation. These loans are marketed to those in desperate financial straits and thus are perceived as a risk factor by other lenders when future lines of credit are being considered. 

Only 12% of FICO High Achievers [?] have a consumer finance account.

[pizzadude]

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@Mario4 wrote:
Im looking for a 3k consolidation loan from One Main Financial. Other places have denied me and I cant risk another wasted inquiry. Ive heard theyre categorized as consumer finance. So that hurts your credit in some way even after paying it off. Cant find any SOLID info online about consumer finance loans affect on credit though. All info is appreciated.

Thanks in advance.

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The FICO scoring ding for "consumer finance" is relatively minor, so I wouldn't worry too much about it.

[Mario4]

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@pizzadude wrote:

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@Mario4 wrote:
Im looking for a 3k consolidation loan from One Main Financial. Other places have denied me and I cant risk another wasted inquiry. Ive heard theyre categorized as consumer finance. So that hurts your credit in some way even after paying it off. Cant find any SOLID info online about consumer finance loans affect on credit though. All info is appreciated.

Thanks in advance.

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The FICO scoring ding for "consumer finance" is relatively minor, so I wouldn't worry too much about it.

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Do you know how long it would stay on my report? (After Paying off) Also I'd be looking for an AutoLoan in the near future, dont want it to negatively affect my approval 

[pizzadude]

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@Mario4 wrote:

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@pizzadude wrote:

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@Mario4 wrote:
Im looking for a 3k consolidation loan from One Main Financial. Other places have denied me and I cant risk another wasted inquiry. Ive heard theyre categorized as consumer finance. So that hurts your credit in some way even after paying it off. Cant find any SOLID info online about consumer finance loans affect on credit though. All info is appreciated.

Thanks in advance.

---

The FICO scoring ding for "consumer finance" is relatively minor, so I wouldn't worry too much about it.

---

Do you know how long it would stay on my report? (After Paying off) Also I'd be looking for an AutoLoan in the near future, dont want it to negatively affect my approval 

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Accounts will remain on your reports for ~10 yrs from the date closed.  

I doubt it would negatively impact your auto financing unless it wasn't paid as agreed.

[CreditGuy03]

A consumer finance loan is for people with bad credit who cant get a normal loan from a bank or credit union. 

[T4YLOR_M4D3]

I am no expert, but I have a OneMain loan from when I started my rebuilding journey, and I have done several successful recons with underwriters (Chase,Barclay,USAA), and not one of them asked about that tradeline....So I would say no impact on scoring and little, if any, impact under manual review....beside the fact that people cringe when they see OneMain (including me).

[vtguy25]

I don't know much about the impact of the trade line but I do know from a job interview that I had at OneMain that their interest rate across the board is like 30%.  They are by far a terrible sub prime lender and in my eyes a predatory lender. So unless whatever you are consolidating has a higher interest rate then that I would stay away.  They also charge you all of your interest up front. 

[CWESTL]

The "Rebuilding Your Credit" discussion board is intended to give advice to those wanting to rebuild their credit. In order to rebuild your credit for the sustainable future one must do the following:

1. Address the issues that caused you to have damaged credit.

2. Change your money management habits (i.e. increase income, minimize expenses, purchase what is necessary, only purchase what you can PIF monthly).

3. Avoid predatory lenders.

Consumer finance loans may or may not have an effect on one's credit score. However, the more significant point is what effect does an exorbitant interest rate (i.e. 30%-700%) have on one's financial position. There are surely other ways to negotiate existing loan terms or reduce your expenses to avoid taking a consumer finance loan that has an interest rate you can't afford either.

Myfico forums are a great arena to gain information about credit, etc. However, it is important to understand true credit, as in financial credibility, is rooted in a pattern of behavior of responsible money management. Consumer finance loans are not a wise financial decision and are often reserved for those that have not learned the importance of making tough decisions (i.e. reducing expenses) to get back on solid financial footing.