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You have a consumer finance account on your credit report.

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cosmiceggstudios
New Visitor

You have a consumer finance account on your credit report.

I was just notified that my score dropped 8 points within the last month because "You have a consumer finance account on your credit report". This was strange because I have not opened any new accounts in at least a year.

 

Its concerning because I have consistently improved my score and 8 points is a significant number in this credit crisis. 

Message 1 of 6
5 REPLIES 5
fused
Moderator Emeritus

Re: You have a consumer finance account on your credit report.

Welcome to the forums!

 

Which web site did you pull this report and score from?

Message 2 of 6
cosmiceggstudios
New Visitor

Re: You have a consumer finance account on your credit report.

I pulled it from the parent domain of this sub-domain (myfico.com). Unless you are referring to what agency; which is Equifax.
Message 3 of 6
fused
Moderator Emeritus

Re: You have a consumer finance account on your credit report.

You said you haven't opened any new accounts in the last year, do you see any account less than one year old on your report? Do you see any accounts on your report with creditors like Beneficial, CITIFinancial, Wells Fargo Financial, etc? Maybe, you have a loan for something (furniture is a common one) with one of these companies or a similar company that you opened more than a year ago and it has been coded as a consumer finance loan.

Message 4 of 6
cosmiceggstudios
New Visitor

Re: You have a consumer finance account on your credit report.

After looking into my accounts, I have noticed something strange. An account named "Aspire/Cbt" which was an old card comes up 3 times..twice with 0 balance and once with $174 balance which seems to be active. However, this card was a card was one that I closed because it was a high interest card. Also there is a "furniture credit line company" Gemb/Jcp, like you said. It has a zero balance. So, should I cancel that account?

Message 5 of 6
haulingthescoreup
Moderator Emerita

Re: You have a consumer finance account on your credit report.


cosmiceggstudios wrote:

Also there is a "furniture credit line company" Gemb/Jcp, like you said. It has a zero balance. So, should I cancel that account?



Hi, welcome to the forums!

This sounds like a JCPenney's card, which is handled by GEMB. Is it actually described as a "furniture credit line company"? I ask because GEMB issues a normal JCP credit card.

If this was not a card, it's possible that it was a furniture loan, coded as a consumer finance loan.

Most people do not get this negative message until their reports are pretty much perfect. In other words, the scoring formula is scraping the bottom of the barrel to find something to criticize.

On the other hand, if this was a new account that popped up, or that changed its reporting, resulting in your points loss, that's different.

One important thing to keep in mind is that if you got this from a Score Watch alert, SW is notorious for giving irrelevant reasons for score changes. It's possible that your score actually dropped from an extra card reporting a balance, or a higher balance reported --at any rate, something completely unrelated to the presence of a CFL on your report.

Closing/ canceling accounts does not make any negatives go away. Please read fused's Closing Credit Cards.

In addition, if you haven't already, please read Understanding Your FICO ® Score and Credit Scoring 101 (at least the first post.)

These will give you the background knowledge you need to understand what you read here on the forums.
Message Edited by haulingthescoreup on 02-06-2009 03:05 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 6 of 6
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