Re: What are consumer finance accounts?
03-04-2012 05:20 AM
"Consumer Finance Accounts" according to FICO, and probably other scoring systems, are NOT the normal CC, Auto Loans, etc.
Example would be a furniture store might offer a customer the ability to buy $5,000 worth of furniture but the person wouldn't have a CC that could handle that purchase. The furniture store might have an account with a "Consumer Finance Company", like GE Capital. The customer fills out an application that goes to GE Capital. The customer might pay a high interest rate or the store might underwrite part of it so the customer doesn't see the high rate.
Payday loans, and other extremly high interest loans are other examples.
There has been some posts lately about Home Depot card being listed as "consumer finance", including mine. It doesn't seem to quite fit the catagory.
Great info Greg, thank you for correcting me, I just googled "consumer finance accounts" and that's what I found after sifting through several definitions of CFA's.
I'm sorry to the OP for posting inaccurate info, I hate when I do that, thankfully Greg came in and clarified it for you, and gave you the correct answer.
Again my apologies.
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