topic Any new info on CFA? And an Affirm debate in Personal Finance

Any new info on CFA? And an Affirm debate

Blender — Sat, 16 Dec 2023 16:04:45 GMT

Consumer Finance Accounts, not chic-fil-a (but those minis...)

I just learned of this last night reading through a 2021 thread. I went to EX and do see that I have that listed under my AUTO scores. One current and one paid loan, but both have been the better rates offered at the time of signing, but not 0%. So, I'm assuming its from a Mariner Finance personal loan (higher %) and an Affirm Loan in the past.

-Do we think having CFA code is a reason not to be getting pre-approvals or mailers from prime lenders?

-Once that code is there, its there for the next 10. So does adding a new TL that codes CFA make it 'worse' for your score?

I know the general consensus is to avoid lenders like Affirm. But if I have the money to cover my large expense in full in the event of financial crisis , would you argue against using the 0% offer? After all, we are finances over FICOs. I do pretty well managing multiple bills/ accounts and this works better for me and my current plan than app'ing for a new 0% card and taking the benefits. However, I'm not a math guy, so I encourage anyone who is, to show me why it might be better.

Re: Any new info on CFA? And an Affirm debate

pizzadude — Tue, 19 Dec 2023 22:19:10 GMT

@Blender wrote:
Consumer Finance Accounts, not chic-fil-a (but those minis...)

I just learned of this last night reading through a 2021 thread. I went to EX and do see that I have that listed under my AUTO scores. One current and one paid loan, but both have been the better rates offered at the time of signing, but not 0%. So, I'm assuming its from a Mariner Finance personal loan (higher %) and an Affirm Loan in the past.

-Do we think having CFA code is a reason not to be getting pre-approvals or mailers from prime lenders?
-Once that code is there, its there for the next 10. So does adding a new TL that codes CFA make it 'worse' for your score?

I know the general consensus is to avoid lenders like Affirm. But if I have the money to cover my large expense in full in the event of financial crisis , would you argue against using the 0% offer? After all, we are finances over FICOs. I do pretty well managing multiple bills/ accounts and this works better for me and my current plan than app'ing for a new 0% card and taking the benefits. However, I'm not a math guy, so I encourage anyone who is, to show me why it might be better.

In general I think the "CFA penalty" is overblown from a FICO scoring perspective and that other lenders generally don't care about it. At least that's been my experience. I will also say that I'm a firm believer in finances over FICO and I wouldn't hesitate to jump on a 0% offer if it was offered at the right time, irregardless of any CFA notations.

Re: Any new info on CFA? And an Affirm debate

Blender — Wed, 20 Dec 2023 01:48:09 GMT

@pizzadude wrote:
@Blender wrote:
Consumer Finance Accounts, not chic-fil-a (but those minis...)

I just learned of this last night reading through a 2021 thread. I went to EX and do see that I have that listed under my AUTO scores. One current and one paid loan, but both have been the better rates offered at the time of signing, but not 0%. So, I'm assuming its from a Mariner Finance personal loan (higher %) and an Affirm Loan in the past.

-Do we think having CFA code is a reason not to be getting pre-approvals or mailers from prime lenders?
-Once that code is there, its there for the next 10. So does adding a new TL that codes CFA make it 'worse' for your score?

I know the general consensus is to avoid lenders like Affirm. But if I have the money to cover my large expense in full in the event of financial crisis , would you argue against using the 0% offer? After all, we are finances over FICOs. I do pretty well managing multiple bills/ accounts and this works better for me and my current plan than app'ing for a new 0% card and taking the benefits. However, I'm not a math guy, so I encourage anyone who is, to show me why it might be better.

In general I think the "CFA penalty" is overblown from a FICO scoring perspective and that other lenders generally don't care about it. At least that's been my experience. I will also say that I'm a firm believer in finances over FICO and I wouldn't hesitate to jump on a 0% offer if it was offered at the right time, irregardless of any CFA notations.

Appreciate the response. More I read the past few days, the more I agree