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Valued Contributor
Posts: 2,857
Registered: ‎06-08-2012
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SM - SL considered "Consumer finance accounts?"

[ Edited ]

.When I pulled my new EQ I got a new item in my negative column that wasnt there before.  It seems that EQ is treating my Sallie Mae Student Loan accounts as Consumer finance accounts.  Why?  Since this is the 4th item on the list and they really help my AAoA, should I worry myself about them being listed as such?

 

 

 

  • You have a consumer finance account on your credit report.

    Number of consumer finance accounts on your credit report16 accounts
    Only 12% of FICO High Achievers have a consumer finance account.

    Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

    The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes.

    What to do about this: You should try to stay current with all of your payments and avoid opening any new credit accounts that you don't need.



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Posts: 4,336
Registered: ‎09-06-2008
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Re: SM - SL considered "Consumer finance accounts?"

That's pretty unusual.  Private loans?  I wonder if others have noticed this as well.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Valued Contributor
Posts: 2,857
Registered: ‎06-08-2012
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Re: SM - SL considered "Consumer finance accounts?"

Well they are scheduled to fall off June 2014 and its pretty low on my list of negative factors.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

Take the FICO Fitness Challenge
Valued Contributor
Posts: 2,857
Registered: ‎06-08-2012
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Re: SM - SL considered "Consumer finance accounts?"

Anyone have an idea about this? I got my letter from NFCU re my flagship card and this was listed 3rd reason. In truth I have none but it seems to be still treating SL as consumer accounts.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

Take the FICO Fitness Challenge
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Posts: 32,869
Registered: ‎08-04-2007
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Re: SM - SL considered "Consumer finance accounts?"

OP, are you certain this is it? Look in your EQ CR for the "account type" field I believe it is called. Look for something like "consumer finance account" or similar. Look at all opened and closed TLs too.

 

Relatively speaking it is benign and the ding is uber minor, if at all. In fact, if you remove the SLs, assuming that was it, you'd lose points.

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