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: 2,325
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: 12/22/14 TU 659; EQ 649; EX 658
Goal Score:  625 for now– New goal 675

Cap1 sec $1k (SD) / Fingerhut $2k / Flagship $12k / cashRewards $10k / NavChek $15k / Amazon $2k / Von Maur $1k / Firestone $2.2k / BCU $3k / NFL $1k / QS1 $500 / Target $400 / PPSC $800 / Texaco $400 (last app 09/29/14)
Established Contributor
Posts: 587
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.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+