Established Contributor
Posts: 720
Registered: ‎05-04-2007
Re: Consumer Finance Companies
Since many CC companies offer both prime and sub-prime cards, you can't just label each CC company as one or the other, and I don't think there's any easy way to distinguish individual accounts. For example, I originally applied for one Chase card, but I currently have four because Chase bought accounts from other CC issuers who had previously bought accounts, etc. The interest rates and credit limits for the four accounts are all over the map, and I'm sure a couple of them would have been considered sub-prime when opened. Chase would need to somehow individually classify each account, and then the CRA would need to apply a more complicated scoring formula, based on the classifications. And in reality, I treat all the accounts the same. It makes no difference to me whether I opened Account A ten years ago when my score was 600 and opened Account D five years ago when my score was 720, and I don't think having Account A on my record means I am more of a credit risk.

In addition, CC companies offer dozens of cards - some might require a 620 score, some a 630, some a 640, etc. It seems like it would be extremely complicated to classify each card, and then decide where to draw the line in order to penalize certain cards.