"Consumer Finance Account" ?

[codedoctor]

Hello!

I just checked my Experian FICO before they pull up their tent at myFICO. My Experian FICO was 797. The negative was "You have a consumer finance account on your credit report."

I expect this is a promotional deal from either a bed/mattress store or a furniture store (a place on a par with Pottery Barn). These were those deals where you get 3 or 6 months interest free. I never did feel good about those things and haven't done them since (these were about 5-8 years ago).

I don't know if the negative comment on Experian is due to one or both of these accounts. Or maybe it's due to something elese.

Should I close those two accounts? They will never be used again. If closed, will they continue to haunt my FICO for 7 years?

[haulingthescoreup]

Yep, they're on there for 10 years after you close them.

FWIW, the ding on CFL's is relatively tiny. Most people don't get this negative until their records are nearly perfect. It's a sign that the formula is scraping the bottom of the barrel to find something to criticize.

As I understand it, the ding comes from the fact that CFL's are comparatively easy to get, and their presence is interpreted as meaning that you were in credit trouble and desperate for funds. I think this is ridiculous, as many people get them for the reasons you listed (0% financing, etc.), or because they don't realize that they can hurt your credit, and they're so simple to originate. But there you are.

At any rate, it will be a decade before they go away, so open or closed, you're going to be looking at them for a while.