topic Re: Applied for Samsung Financing, but did not complete the purchase in Understanding FICO® Scoring

Applied for Samsung Financing, but did not complete the purchase

Anonymous — Thu, 21 Feb 2019 18:21:17 GMT

Hi all,

Just wondering about the potential credit implications the act of applying for Samsung Financing will have on my credit.

I have good credit, (780+) and I was offered a credit line of $3200 from Samsung. I ultimately did not make any purchase through them.

Wondering how this may impact my credit report.

Re: Applied for Samsung Financing, but did not complete the purchase

Anonymous — Thu, 21 Feb 2019 18:43:24 GMT

I did a lot of research about them this morning when I was pre-ordering my s10+. They seem to fall into the category of Consumer Finance Accounts and are not looked at favorably by the credit bureaus. I avoided them for this reason and paid cash instead.

Re: Applied for Samsung Financing, but did not complete the purchase

Anonymous — Thu, 21 Feb 2019 18:45:45 GMT

Yeah, I did the same but unfortunately not until I had already given them my SSN and they gave me a credit line back. I checked my credit report and there is a hard inquiry on the account. I'm not super worried but I'm just trying to figure out if I now have an active account and whether or not I should look into closing.

@Anonymous wrote:
I did a lot of research about them this morning when I was pre-ordering my s10+. They seem to fall into the category of Consumer Finance Accounts and are not looked at favorably by the credit bureaus. I avoided them for this reason and paid cash instead.

Re: Applied for Samsung Financing, but did not complete the purchase

Anonymous — Thu, 21 Feb 2019 18:47:13 GMT

Sounds like you definitely have an open account now. Not sure that closing it would even do much good now.

Re: Applied for Samsung Financing, but did not complete the purchase

Anonymous — Thu, 21 Feb 2019 18:58:15 GMT

Samsung Financing counts as a consumer finance account (CFA) and it may show as a negative reason code on your credit report. I don't think it has been nailed down how many points this costs. I wouldn't suspect very much.

Here is an older post discussing it.
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Samsung-Financing-dropped-Credit-Score/m-p/5238334