You have a consumer finance account on your credit report

[ChrisinKC]

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

[Anonymous]

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@ChrisinKC wrote:

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

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Consumer finance companies are typically ones that ou turn to for a credit product that has higher APRs than normal creditors.  It's impact is marginal and it's hard to say what one you have without knowing what accounts you have.

[ChrisinKC]

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@Anonymous wrote:

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@ChrisinKC wrote:

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

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Consumer finance companies are typically ones that ou turn to for a credit product that has higher APRs than normal creditors.  It's impact is marginal and it's hard to say what one you have without knowing what accounts you have.

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Interesting.  I certaintly don't remember going anywhere begging for credit, although I know that I've been charged outrageous APR's before.  The cruddy thing is that I can't find anything on my credit report that says which account is a consumer finance account.  That should be clearly marked since I'm losing points due to that.

[Anonymous]

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@ChrisinKC wrote:

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@Anonymous wrote:

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@ChrisinKC wrote:

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

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Consumer finance companies are typically ones that ou turn to for a credit product that has higher APRs than normal creditors.  It's impact is marginal and it's hard to say what one you have without knowing what accounts you have.

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Interesting.  I certaintly don't remember going anywhere begging for credit, although I know that I've been charged outrageous APR's before.  The cruddy thing is that I can't find anything on my credit report that says which account is a consumer finance account.  That should be clearly marked since I'm losing points due to that.

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Well they can be difficult to tell because most people don't assume that they are different.   Prosper and Lending Club loans for example are considered to be CFCs.   Also don't be sure that you're actually losing points because of it.  All these agencies are required to list factors for anything less than a perfect score. Often they just throw out something from their grab bag of excuses.  

[ChrisinKC]

"...their grab bag of excuses".

^that made me LOL!

[Anonymous]

Often they just throw out something from their grab bag of excuses.  

Yep, my TU Fico is currently at 799, and it says this:

The balances of your non-mortgage installment loans (such as auto or student loans) are high compared to your original loan amounts. As you pay down your loan your balance decreases, which reduces the proportion.

When it's at 800, that message disappears.

[racer-x]

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@Anonymous wrote:

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@ChrisinKC wrote:

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

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Consumer finance companies are typically ones that ou turn to for a credit product that has higher APRs than normal creditors.  It's impact is marginal and it's hard to say what one you have without knowing what accounts you have.

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Balderdash.  I gained 26 pts when my CFA fell off from my reports....it was a small town personal loan company.

Marginal impact??, I think not.   Dam near as hurtful to your score as a 30 day late.

[ChrisinKC]

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@racer-x wrote:

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@Anonymous wrote:

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@ChrisinKC wrote:

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

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Consumer finance companies are typically ones that ou turn to for a credit product that has higher APRs than normal creditors.  It's impact is marginal and it's hard to say what one you have without knowing what accounts you have.

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Balderdash.  I gained 26 pts when my CFA fell off from my reports....it was a small town personal loan company.

Marginal impact??, I think not.   Dam near as hurtful to your score as a 30 day late.

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Wow, seems like the banks that offer these CFA's should be required to disclose that your credit will suck worse, and for a very long time, after accepting one of their loans.  

[NRB525]

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@ChrisinKC wrote:

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@racer-x wrote:

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@Anonymous wrote:

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@ChrisinKC wrote:

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

---

Consumer finance companies are typically ones that ou turn to for a credit product that has higher APRs than normal creditors.  It's impact is marginal and it's hard to say what one you have without knowing what accounts you have.

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Balderdash.  I gained 26 pts when my CFA fell off from my reports....it was a small town personal loan company.

Marginal impact??, I think not.   Dam near as hurtful to your score as a 30 day late.

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Wow, seems like the banks that offer these CFA's should be required to disclose that your credit will suck worse, and for a very long time, after accepting one of their loans.  

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You gained 26 points when an account in good standing dropped off of reporting on your credit report, meaning it had been closed for, what, 7 years already? That doesn't sound right. I'm wondering if something else changed in your file at the same time? What was the score, with the CFA, then after? What was the source of the FICO score calculation?

[racer-x]

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@NRB525 wrote:

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@ChrisinKC wrote:

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@racer-x wrote:

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@Anonymous wrote:

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@ChrisinKC wrote:

So I was reviewing my Equfax's score factors, and it says "You have a consumer finance account on your credit report.". When I click on the ? for more information, I get the following:

The presence of a consumer finance company loan on a credit report generally represents a higher risk to lenders compared to having no consumer finance company loans reported. Even if this account is reported as closed, it can still impact the score.

What does this mean?

---

Consumer finance companies are typically ones that ou turn to for a credit product that has higher APRs than normal creditors.  It's impact is marginal and it's hard to say what one you have without knowing what accounts you have.

---

Balderdash.  I gained 26 pts when my CFA fell off from my reports....it was a small town personal loan company.

Marginal impact??, I think not.   Dam near as hurtful to your score as a 30 day late.

---

Wow, seems like the banks that offer these CFA's should be required to disclose that your credit will suck worse, and for a very long time, after accepting one of their loans.  

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You gained 26 points when an account in good standing dropped off of reporting on your credit report, meaning it had been closed for, what, 7 years already? That doesn't sound right. I'm wondering if something else changed in your file at the same time? What was the score, with the CFA, then after? What was the source of the FICO score calculation?

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The acct was closed for like 6 mos.  Only a 1 yr loan. "the source of the fico score calculation"? - Heck if I know.  Not sure I uunderstand your question.

I had the CFA removed on say Monday.  On tuesday, I got an alert from EQ with the big pt increase and the CFA was gone.

And yea, the other change was my credit history was a whole day older at the time of the increase.