Consumer Financing

corymcd88 — Tue, 11 Apr 2017 02:46:45 GMT

Why do people say that "Consumer Financing" reporting bad?

Re: Consumer Financing

Skymogul — Tue, 11 Apr 2017 06:32:26 GMT

@corymcd88 wrote:
Why do people say that "Consumer Financing" reporting bad?

For certain score models (v8 Auto and all v9), it's a negative.

Re: Consumer Financing

Anonymous — Tue, 11 Apr 2017 12:15:15 GMT

THat's right. As far as I know, it is considered a bad thing by FICO for all its models before FICO 9. I did not know this negative "reason code" was coming up on FICO 9 as well!

The following thread may be of interest to our OP. Some folks were scratching their head and wondering why FICO would decide to make the mere presence of CFAs (consumer financing accounts) a bad thing. There's some discussion about why FICO might do that:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Equifax-is-reporting-a-recent-consumer-finance-account-being/td-p/4905624/page/2

It starts with Post #15, where lowKeyOrca asks:

"I'm just confused as to why financing wood flooring would be considered a negative. What if it was 0% interest? Why are people being penalized for being extended that type of credit?"

topic Re: Consumer Financing in Understanding FICO® Scoring

Consumer Financing

Re: Consumer Financing

Re: Consumer Financing