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Established Contributor
Andy77
Posts: 675
Registered: ‎10-02-2007
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Installment Loans Assumed as Personal Finance Loan Question...

So, I opened a unsecured loan at my CU to consonidate debt.
 
I read on another post that an unsecured loan COULD be considered a consumer finance loan thus dinging my score...even if it is not stated as such
 
Will creditors and credit reporting agencies when pulling/calculating my scores read into this type of account that much and figure out becuse I borrowed cash that I really have a consumer finance loan and ding me?
 
Thanks 
 
 
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Re: Installment Loans Assumed as Personal Finance Loan Question...



Andy77 wrote:
So, I opened a unsecured loan at my CU to consonidate debt.
 
I read on another post that an unsecured loan COULD be considered a consumer finance loan thus dinging my score...even if it is not stated as such
 
Will creditors and credit reporting agencies when pulling/calculating my scores read into this type of account that much and figure out becuse I borrowed cash that I really have a consumer finance loan and ding me?
 
Thanks 
 
 


Maybe, but probably not.  CFLs are typically financing accounts opened to purchase retail products like furniture and electronics.  Unsecured personal loans are usually not coded as CFLs.  Even if you are dinged for a CFL, though, keep in mind it's only a minor ding, and your efforts at improving your score are usually better directed elsewhere.
 
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