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Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007

Re: Consumer Finance Companies

[ Edited ]
ilovepizza wrote:

Does anyone know how these installment titles from Citi Financial "effect" your score?
...."Extra Cash"
...."Re-Finance loans"
...."Unexpected Expenses"

Thank you in advance for your answers and opinions. :-)

Message Edited by ilovepizza on 05-25-2007 08:44 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: Consumer Finance Companies



ilovepizza wrote:
ilovepizza wrote:

Does anyone know how these installment titles from Citi Financial "effect" your score?
...."Extra Cash"
...."Re-Finance loans"
...."Unexpected Expenses"

Thank you in advance for your answers and opinions. :-)

Message Edited by ilovepizza on 05-25-2007 08:44 PM

These all fall under installment. The effect depends on your overall credit picture.
Moderator Emeritus
fused
Posts: 16,253
Registered: ‎03-12-2007

Re: Consumer Finance Companies

I guess I just do not get it, or rather I am having trouble accepting it!:smileysad:  According to what you said earlier, Tuscani, FICO can distinguish between prime and subprime installment loans.  Since they are not doing the same with prime and subprime cc's, shouldn't they.  Why should FICO punish some who have subprime installments, and not punish some who possess subprime cc's.  This is not to say I want FICO to punish everyone who has subprime accounts of any kind but the playing field is really tilted.  Is it possible when FICO makes changes in the future, this might be something they look at?
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Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007

Re: Consumer Finance Companies

[ Edited ]

Tuscani wrote:
These all fall under installment. The effect depends on your overall credit picture.




Oh I think I got it. It's not the loan. Not the bank. It is ANY loan that has the code or notation of "consumer finance" associated with it. It's not sub-prime notation, but consumer finance code. So generally the loans I take out may be from a Consumer Finance company but they don't have to negatively code it. And if the notation does not reflect consumer finance instead my have no notation or secured, something like that, I am safe.

Do I get it now? And to further understand this, even a "debt consolidation loan" if it did not have the code or notation for consumer finance instead it used the code for secured, ect. (which does not happen) then it would count positively.

And if this is correct.... When dealing with a sub-prime bank I need to get confirmation from the loan manager that it will not be noted consumer finance

How was all that? This one was a bit, very confusing.

Thank you in advance again... :-)

Message Edited by ilovepizza on 05-25-2007 10:20 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007

Re: Consumer Finance Companies



fused111 wrote:
Why should FICO punish some who have subprime installments, and not punish some who possess subprime cc's.





I am going to try and comment on this one, and I may be very wrong. I will need Tuscani to confirm.

Just because you have a sub-prime cc does not mean you are in trouble. But when you take out a sub prime installment, chances are you are doing that to help pay an existing debt you may be having trouble with. Sub prime loans are usually expensive and normally would be someone last resort when all other credit options are exhausted.

But to further correct my self. It is not a sub-prime loan. Rather it is a loan marked "consumer finance". And finally to answer the other part about sub-prime cc's. Sub-prime cc's don't have the title "consumer finance" associated.

And finally.. to be fair since sometimes sub-prime cc's are from consumer finance companies, they can be mistaken as a "consumer finance" account. Since cc's have available credit not debt like an installment, they do not deduct point from sub-prime cc's.

I could be so wrong on this one. Please reply! Thank you again so much!
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
New Visitor
Surf
Posts: 2
Registered: ‎11-29-2009

Re: Consumer Finance Companies

Your situation is a similar one to mine. My FICO score is lowered because of a listing of one Consumer Finance co, but I don't know which one they're talking about, which means I don't know how to rectify/improve the situation without knowing which item to address. Any thoughts out there? I need some help on this. Up until now, I didn't even know that there was a distinction between how these listings can effect (poorly, it seems) on my credit score. 

 

The other matter I need help with is an item listed under "Collection" from a public utility company from 4 yrs ago. I'm assuming it relates to a rental property that I sold 5 months prior to the collection notice. The collection is for 34.00 and it's for one month. Since I was not the owner at the time, I'm guessing that the condo might have sat vacant for that one month. Since it was basically unlisted for that one month, the utility co. decided to go after me. I was unaware of this notice until I checked my reports. What's the best way for me to resolve this issue without it blowing up my credit score or worsening my score or reports. As I've been reading these personal experiences, sometimes it's riskier to correct than to let things float by.  Please advise. It would be greatly appreciated!

Valued Contributor
Jazzzy
Posts: 2,678
Registered: ‎07-29-2009

Re: Consumer Finance Companies


Surf wrote:

Your situation is a similar one to mine. My FICO score is lowered because of a listing of one Consumer Finance co, but I don't know which one they're talking about, which means I don't know how to rectify/improve the situation without knowing which item to address. Any thoughts out there? I need some help on this. Up until now, I didn't even know that there was a distinction between how these listings can effect (poorly, it seems) on my credit score. 

 

The other matter I need help with is an item listed under "Collection" from a public utility company from 4 yrs ago. I'm assuming it relates to a rental property that I sold 5 months prior to the collection notice. The collection is for 34.00 and it's for one month. Since I was not the owner at the time, I'm guessing that the condo might have sat vacant for that one month. Since it was basically unlisted for that one month, the utility co. decided to go after me. I was unaware of this notice until I checked my reports. What's the best way for me to resolve this issue without it blowing up my credit score or worsening my score or reports. As I've been reading these personal experiences, sometimes it's riskier to correct than to let things float by.  Please advise. It would be greatly appreciated!


 

Hi Surf....you responded on a thread that is a couple of years old, but it still contains good information. If you want to list which accounts are on your reports, someone can likely come along and pick out the account that is the "consumer finance" culprit. Then you can get some advice on whether there is anything to do about it.

 

As to your collection account. I would list the details of that account....exactly how it shows on your reports...on the Rebuilding Your Credit forum. Those folks are experts on collection accounts and on what to do...or not do...on them.

New Visitor
Surf
Posts: 2
Registered: ‎11-29-2009

Re: Consumer Finance Companies

[ Edited ]
To LynetteM: Thanks so much for replying to my dilemma. Your suggestions are really helpful and I will take your advice. Will let you know what happens. All the best.
Message Edited by Surf on 11-30-2009 08:01 AM
Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: Consumer Finance Companies


Tuscani wrote:
The FICO formula does not distinguish between prime/subprime per se. The way it identifies a 'consumer finance' account is through the bureau subscription code -- the lender's ID# at the bureau -- that, among other things, indicates what kind of business it is. (This is also how mortgage and auto inquiries are distinguished from other inquiry types.)

This fits in with what we've seen on DH & my reports. 

GEMB Care Credit is listed as Consumer Financing for DH. 

GEMB Walmart and GEMB JCPenney is listed as Consumer Financing for me. 

When I opened my GEMB accounts, "Too Many Consumer Finance Accounts" jumped up to become my #2 baddie.

 

 

Just puttin' syrup on something, don't make it pancakes.
Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: Consumer Finance Companies


LynetteM wrote:

 

Hi Surf....you responded on a thread that is a couple of years old, but it still contains good information. If you want to list which accounts are on your reports, someone can likely come along and pick out the account that is the "consumer finance" culprit. Then you can get some advice on whether there is anything to do about it.


+1.

 

I wish they (Consumer Finance Company Accounts) were listed on our FICO reports so they were easier to find, but they’re not (or at least I can’t find them there).  The good news is that there’s a couple of ways to find out which accounts they are.  On this thread, Moderator Tuscani wrote: 

  “The way it [the FICO formula] identifies a 'consumer finance' account is through the bureau subscription code -- the lender's ID# at the bureau -- that, among other things, indicates what kind of business it is. (This is also how mortgage and auto inquiries are distinguished from other inquiry types.) 

The codes that Tuscani’s talking about are also called KOB (Kind of Business) Codes.  You can google them – one place google will send you to is TU’s pamphlet “TransUnion Credit Report Guide” (Experian publishes a list also – it seems identical), which lists them and shows you where to find them on your report.

 

I can find the KOB on my mortgage pull, which came from CBCInnovis, and on my CCT inquiry page – which matches the CBCInnovis data, so it seems pretty accurate.  Hope that helps anyone who’s trying to find the mysterious Consumer Finance Companies.

 

I have to note, too, that my mortgage pull brought “Consumer Finance Companies” in as my #2 EQ ouch.  Myfico EQ report pulled the same day did not include it in my list of three negative factors – so there’s a little discrepancy in that aspect of the reports ;(.

 

 

Just puttin' syrup on something, don't make it pancakes.

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