Actually, part of my question is how I can determine if this particular company is regarded by the CBs to be a "consumer finance" company. There is no "consumer finance" designation on the report - EQ only classifies this account as "Revolving". Would EQ use a different designation if American General is considered a CF company? Or is any company other than a bank, credit union, or major credit card issuer automatically classified as a CF company?
Tuscani wrote:Agreed. Close it or ask them to remove the "consumer finance" notation.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.Message Edited by Tuscani on 05-05-2007 03:00 PM