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New Visitor
Posts: 0
Registered: ‎10-12-2013

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?

Community Leader
Valued Contributor
Posts: 2,398
Registered: ‎11-29-2012

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 Goal Score:
 625 for now– New goal 675
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Established Contributor
Posts: 607
Registered: ‎09-27-2013

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.

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