topic Re: Where is the "Consumer Finance Account?" in Understanding FICO® Scoring

Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 01:19:16 GMT

I was checking some of my husband's other scores on Experian and one negative factor listed on several scores is "Consumer Finance Account." I can't find a single consumer finance account on his report. Could his Synchronicity American Eagle credit card be considered a consumer finance account? The account types listed on his report are "credit card - revolving terms," "conventional real estate mortgage," "agriculture," and "auto loan." Could "agriculture" be considered a consumer finance account? I guess I'm confused.

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 04:28:51 GMT

Are you including closed accounts?

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 05:59:14 GMT

Yes, I went through all his closed accounts.

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 06:53:54 GMT

Where did you get his report from?

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 12:15:27 GMT

from Experian.com

Re: Where is the "Consumer Finance Account?"

codefreak13 — Fri, 06 Apr 2018 13:29:40 GMT

I have racked my brain over how this is designated as well. I have a onemainfinancial account (I know) closed on my report, but even on all three paper reports it shows simpy as an installment loan. All three CRAs report it as a score factor. I am considering the possibility that the designation may be tied to the lender itself in some fashion.

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 14:57:29 GMT

@Anonymousfrom Experian.com

Is it an actual hard-copy report that they sent you in the mail or is it from CMS software? It's possible that these things can differ slightly.

I had a Wells Fargo Financial account about 5 years ago that was represented many different ways depending on the source. It was when I financed furniture through Bob's and they pushed the in-store financing on me and I ignorantly took the bait, years before I found this forum and knew better. Anyway, it turned out not being coded as a CFA. In looking at all of my hard-copy credit reports, it was coded as a credit card / revolving account. That was good news. When looking through different CMS sources, though, it was listed different ways depending on the source, including an installment loan and a consumer finance account.

Re: Where is the "Consumer Finance Account?"

SouthJamaica — Fri, 06 Apr 2018 16:37:25 GMT

@codefreak13 wrote:
I have racked my brain over how this is designated as well. I have a onemainfinancial account (I know) closed on my report, but even on all three paper reports it shows simpy as an installment loan. All three CRAs report it as a score factor. I am considering the possibility that the designation may be tied to the lender itself in some fashion.

I believe that's it.

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 16:45:33 GMT

Huh. I wonder why they would consider AgDirect or Farm Credit Services of America to be Consumer Finance. So every time we finance a tractor or combine it might be considered consumer finance. Great.

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 17:35:41 GMT

Note to our OP --

The best way for folks like BBS and others to help you is to list for us every account on the report. You'd tell us the name of the account, the account type, anything else the report says about it (you can exclude credit limit, original loan amount, or balance) and the name of the lender/creditor. If it is a revolving account, you'd tell us whether it is a major credit card (Visa, MC, Discover, Amex). And very importantly, you'd add a description in your own words about what you got the account for originally, and what you can imagine it being used for.

The reason we'd need to know all this about your report is that you are asking us what on your report could be triggering the CFA warning. We can't see your report so we can't know unless you tell us everything on it.

And of course, the credit bureau generating the report would need to be a bureau for which you see this negative reason statement on your FICO scores.

Your guess about the agriculture account is possible. Accounts that are used to finance particular pieces of machinery (washer/dryers, big screen TVs, etc.) are often considered CFAs (auto loans are excluded). Other kinds of financing of specific physical objects (a sofa or dining room set at Rooms To Go) are also prime examples of CFAs. Major credit cards (VISA, Discover, etc.) are never considered CFAs, since they can be used at almost any store for thousands of different kinds of purchases, including services.

If you get a loan at a major bank or credit union to finance the tractor or combine that would almost certainly not be considered a CFA. Another strategy would be to open a major credit card that has a 12 or 18 month 0% interest promotion.

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 23:30:33 GMT

CAPITALONE
Details
Account # 517805XXXXXX
Original Creditor -
Company Sold -
Account Type Credit Card - Revolving Terms
Date Opened Aug 1, 2010
Account Status Open
Payment Status Current, was past due 30 days
Status Updated Jun 1, 2013
Usage 0%
Balance $0
Balance Updated Mar 18, 2018
Credit Limit $750
Monthly Payment $15
Past Due Amount -
Highest Balance $640
Terms Revolving
Responsibility Individual

FARM CREDIT SVCS OF AM
Details
Account # 178913XXXXXXXXXXX
Original Creditor -
Company Sold -
Account Type Conventional Real Estate Loan, Including Purchase Money First
Date Opened Jul 1, 2011
Account Status Open
Payment Status Current
Status Updated Feb 1, 2018
Usage -
Balance $208,415
Balance Updated Feb 28, 2018
Original Balance $313,000
Monthly Payment $2,438
Past Due Amount -
Highest Balance -
Terms 180 Months
Responsibility Individual

FARM CREDIT/AGDIRECT
Details
Account # 160903XXXXXXXXXXX
Original Creditor -
Company Sold -
Account Type Agriculture
Date Opened Nov 1, 2017
Account Status Open
Payment Status Current
Status Updated Feb 1, 2018
Usage -
Balance $16,282
Balance Updated Feb 28, 2018
Original Balance $16,500
Monthly Payment $385
Past Due Amount -
Highest Balance -
Terms 49 Months
Responsibility Individual

SYNCB/AMER EAGLE DC
Details
Account # 478431XXXXXX
Original Creditor -
Company Sold -
Account Type Credit Card - Revolving Terms
Date Opened Dec 1, 2014
Account Status Open
Payment Status Current
Status Updated Mar 1, 2018
Usage 0%
Balance $0
Balance Updated Mar 30, 2018
Credit Limit $1,024
Monthly Payment $25
Past Due Amount -
Highest Balance $110
Terms Revolving
Responsibility Individual

AMERICAN BANK & TRUST
Details
Account # 870348XX
Original Creditor -
Company Sold -
Account Type Auto Loan
Date Opened Aug 1, 2010
Account Status Closed
Payment Status Paid satisfactorily
Status Updated Aug 1, 2015
Usage -
Balance -
Balance Updated Aug 31, 2015
Original Balance $44,600
Monthly Payment -
Past Due Amount -
Highest Balance -
Terms 60 Months
Responsibility Signer

BANKWEST INC
Details
Account # 100000XXXXXXXXXXX
Original Creditor -
Company Sold -
Account Type Auto Loan
Date Opened Aug 1, 2011
Account Status Closed
Payment Status Paid satisfactorily
Status Updated Apr 1, 2015
Usage -
Balance -
Balance Updated Apr 15, 2015
Original Balance $37,221
Monthly Payment -
Past Due Amount -
Highest Balance -
Terms 55 Months
Responsibility Individual

CAP1/CBELA
Details
Account # 430023XXXXXXXXXX
Original Creditor -
Company Sold -
Account Type Credit Card - Revolving Terms
Date Opened Apr 1, 2015
Account Status Closed
Payment Status Paid satisfactorily
Status Updated May 1, 2017
Usage -
Balance -
Balance Updated May 19, 2017
Credit Limit $15,000
Monthly Payment -
Past Due Amount -
Highest Balance $1,578
Terms Revolving
Responsibility Authorized User

CHASE CARD
Details
Account # 464018XXXXXX
Original Creditor -
Company Sold -
Account Type Credit Card - Revolving Terms
Date Opened Aug 1, 2010
Account Status Closed
Payment Status Paid satisfactorily
Status Updated Feb 1, 2016
Usage -
Balance -
Balance Updated Feb 15, 2016
Credit Limit $1,500
Monthly Payment -
Past Due Amount -
Highest Balance $2,509
Terms Revolving
Responsibility Individual

FARM CREDIT SVCS OF AM
Details
Account # 178913XXXXXXXXXXX
Original Creditor -
Company Sold -
Account Type Conventional Real Estate Loan, Including Purchase Money First
Date Opened Jul 1, 2011
Account Status Closed
Payment Status Paid satisfactorily
Status Updated Jan 1, 2018
Usage -
Balance -
Balance Updated Jan 3, 2018
Original Balance $150,000
Monthly Payment -
Past Due Amount -
Highest Balance -
Terms 180 Months
Responsibility Joint Account

FARM CREDIT SVCS OF AM
Details
Account # 178913XXXXXX
Original Creditor -
Company Sold -
Account Type Conventional Real Estate Loan, Including Purchase Money First
Date Opened Jul 1, 2011
Account Status Closed
Payment Status Paid satisfactorily
Status Updated Jun 1, 2014
Usage -
Balance -
Balance Updated Jun 26, 2014
Original Balance $50,000
Monthly Payment -
Past Due Amount -
Highest Balance -
Terms 60 Months
Responsibility Individual

FARM CREDIT SVCS OF AM
Details
Account # 178913XXXXXX
Original Creditor -
Company Sold -
Account Type Conventional Real Estate Loan, Including Purchase Money First
Date Opened Jul 1, 2011
Account Status Closed
Payment Status Paid satisfactorily
Status Updated Mar 1, 2014
Usage -
Balance -
Balance Updated Mar 13, 2014
Original Balance $42,000
Monthly Payment -
Past Due Amount -
Highest Balance -
Terms 72 Months
Responsibility Individual

FARM CREDIT SVCS OF AM
Details
Account # 105968XXXXXXXXXXX
Original Creditor -
Company Sold -
Account Type Agriculture
Date Opened Feb 1, 2015
Account Status Closed
Payment Status Current
Status Updated Oct 1, 2017
Usage -
Balance -
Balance Updated Oct 31, 2017
Original Balance $45,000
Monthly Payment $850
Past Due Amount -
Highest Balance -
Terms 60 Months
Responsibility Terminated

FARM CREDIT/AGDIRECT
Details
Account # 160903XXXXXXXXXXX
Original Creditor -
Company Sold -
Account Type Agriculture
Date Opened Sep 1, 2015
Account Status Closed
Payment Status Paid satisfactorily
Status Updated Jan 1, 2018
Usage -
Balance -
Balance Updated Jan 3, 2018
Original Balance $26,640
Monthly Payment -
Past Due Amount -
Highest Balance -
Terms 60 Months
Responsibility Individual

Re: Where is the "Consumer Finance Account?"

Anonymous — Fri, 06 Apr 2018 23:42:30 GMT

The Capitol One card we got because I thought he should have a credit card. The American Eagle card the salesman just applied for it in store after we said no. DH must’ve given him his social without me knowing. The Chase Card was an Amazon card we got that I assumed they closed but it’s marked closed by us so I don’t know. Maybe DH closed it without me knowing, hard to get him to use credit cards. The Cabelas card is probably better one his parents had and added him to. The mortgages are for land purchase, although I suspect a few of the smaller ones were for purchasing cattle. The installment ones labeled agriculture hard to know what they are for without going through a lot of files and the full loan number isn’t listed which makes it harder. The farm buys a lot of equipment and sometimes the partnership buys equipment and if it does and he happened to sign for it sometimes it ends up on his credit.

Re: Where is the "Consumer Finance Account?"

Anonymous — Sat, 07 Apr 2018 01:33:56 GMT

@Anonymous wrote:
The Capitol One card we got because I thought he should have a credit card. The American Eagle card the salesman just applied for it in store after we said no. DH must’ve given him his social without me knowing. The Chase Card was an Amazon card we got that I assumed they closed but it’s marked closed by us so I don’t know. Maybe DH closed it without me knowing, hard to get him to use credit cards. The Cabelas card is probably better one his parents had and added him to. The mortgages are for land purchase, although I suspect a few of the smaller ones were for purchasing cattle. The installment ones labeled agriculture hard to know what they are for without going through a lot of files and the full loan number isn’t listed which makes it harder. The farm buys a lot of equipment and sometimes the partnership buys equipment and if it does and he happened to sign for it sometimes it ends up on his credit.

One of the accounts of type "agriculture" is open and you all owe most of the original loan amount ($16,282 out of 16,500). It's important to be able to track down the details of every open account that appears on your report. Becoming sure you can do that at any time is an issue completely apart from whether it might be classified as a CFA.

I think your idea that these are being classidied as CFAs is a really good guess. Here is a website that describes the company and the credit network involved:

https://www.fcsamerica.com/who-we-are/about-us

I found that in a heartbeat by googling the lender on your credit report. Also based on your own description of how you use it, it sounds like these are credit products designed to enable a person to "finance" a specific thing (not including cars or homes). CFAs do precisely that: e.g. an account to help someone finance a washer/dryer. In your case it's a tractor, a combine, etc.

I am not in the farm or ranching business, but if you could have those loans taken out by the business itself rather than you guys personally, that would be another way for them not to appear on your credit reports.

The actual scoring impact of CFAs is something that nobody really know here. The guess is that the impact is not substantial, but in your husband's case he has many CFAs on his report, so I wouldn't feel comfortable claiming that it is only a few points.

A few questions:

(1) We realize that you got the report from Experian. You write:

"I was checking some of my husband's other scores on Experian and one negative factor listed on several scores is "Consumer Finance Account.""

It sounds like you subscribe to a credit monitoring tool that gives you many different kinds of scores. What is that tool? Is it the myFICO Ultimate? Some other tool? Which scores indicated the CFA negative reason statement and which did not?

(2) Negative reason statements often come in groups of four, and they are ranked. The first reason given is the thing hurting your score the most, etc. Where does the CFA reason fit in? Was it typically reason 3 or 4? If so, you can probably trust that it is not having much of an impact.

(3) What were his scores?

PS. It looks like he has exactly two open credit cards and that both have a zero balance. His scores will be significantly higher if one of those cards reports a small positive balance each month.

Re: Where is the "Consumer Finance Account?"

Anonymous — Sat, 07 Apr 2018 03:27:29 GMT

He has an Experian.com premium membership.

His FICO 2 is 753, and I think Consumer Finance Accounts is the second listing, but it could be the third. His FICO Auto Score 2 is 739, and the first listed reason is Consumer Finance Accounts. His FICO Bankcard 2 is 770, and the second or third listing is Consumer Finance Accounts. His FICO 3 is 745, and again the second or third listed reason is Consumer Finance Accounts. His FICO Bankcard 8 is 762, and the fourth and last listed reason is Consumer Finance Accounts. That reason doesn’t pop up for his FICO 8, which is 754.

Yeah, I got him some more credit cards and I will set them to autopay and charge a few things to them. Hopefully that will help his scores in the long run.

Re: Where is the "Consumer Finance Account?"

Anonymous — Sat, 07 Apr 2018 05:59:38 GMT

Those scores should all be improved by having 3+ cards where at least one card reports a small positive balance (ideally exactly one, but that's only important if he has is about to apply for credit).

His scores are still pretty good now, however.

The scores that should matter most to him are his mortgage scores, since he takes out real estate loans, and his FICO 8's. The Experian FICO 2 is a mortgage score, but you should be interested in all three of his mortgage scores. His mortgage lenders should be able to tell you what those mortgage scores have been -- you can add a good 10-20 points to them once you have his credit cards in better shape.