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Types of Lender equals Bad Credit?

New Visitor

Types of Lender equals Bad Credit?

I was denied a recent loan from my Credit Union. Although all my accounts are current, we were trying to figure out my low score. The Consumer Credit Manager from my Credit Union advised me that the TYPE of LENDER people deal with can lower a credit score, regardless if the account is current or not. For instance, if you have an auto loan from a finance company that most commonly issues sub prime credit loans, that will lower the score.

 

Has anyone else heard of such an excuse?

2 REPLIES
Valued Contributor

Re: Types of Lender equals Bad Credit?

Yes I have heard before that having a finance company rather than an auto loan on your report looks worse. I've also read that places like Amex won't give you the time of day if you have first premier on your report. I don't know if its true or not.

Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 1/22/15 TU 645; EQ 605; EX 633 New goal 675
Cap1 sec $1k (SD) / Fingerhut $2k / Flagship $12k / cashRewards $12k / NavChek $15k / Amazon $2k / Von Maur $1k / Firestone $2.2k / BCU $3k / NFL $1k / QS1 $750 / Target $400 / PPSC $800 / Conoco $700 (last app 09/29/14)
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Established Contributor

Re: Types of Lender equals Bad Credit?

Yup heard this. If you have credit from of sub prime lenders you could be viewed as higher risk.
EQ 773 * EX 786 * TU 797