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Registered: ‎03-30-2012
Re: What are consumer finance accounts?

Our credit union offers a "FICO" score monthly via only banking services. For the first time, it says:

"You recently opened a new credit account." - I have not.

"You have a consumer finance account on your credit report.

 Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes."
I don't have anything new I've opened - I'm confused as to what this is? We have good credit and relatively low rates, what on earth is this? We do have a Home Depot card with no balance on it - could that cause this? We've had the account for ages.