Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
Re: Consumer Finance Companies

fused111 wrote:
Why should FICO punish some who have subprime installments, and not punish some who possess subprime cc's.

I am going to try and comment on this one, and I may be very wrong. I will need Tuscani to confirm.

Just because you have a sub-prime cc does not mean you are in trouble. But when you take out a sub prime installment, chances are you are doing that to help pay an existing debt you may be having trouble with. Sub prime loans are usually expensive and normally would be someone last resort when all other credit options are exhausted.

But to further correct my self. It is not a sub-prime loan. Rather it is a loan marked "consumer finance". And finally to answer the other part about sub-prime cc's. Sub-prime cc's don't have the title "consumer finance" associated.

And finally.. to be fair since sometimes sub-prime cc's are from consumer finance companies, they can be mistaken as a "consumer finance" account. Since cc's have available credit not debt like an installment, they do not deduct point from sub-prime cc's.

I could be so wrong on this one. Please reply! Thank you again so much!
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