topic Re: Will a mattress account - in Understanding FICO® Scoring

Will a mattress account -

Booner72 — Sat, 26 Nov 2011 16:28:47 GMT

Be an installment or revolving?

I am asking u guys because I going to seriously doubt that the people that work in the mattress store even know.

Re: Will a mattress account -

llecs — Sat, 26 Nov 2011 16:50:40 GMT

It depends on the store and who underwrites the loan. It'll either be considered a revolving or an installment, but some places use companies like Wells Fargo Financial or the company formerly known as CitiFinancial (One Main?), and those are seen as consumer finance loans which can be annoying in FICO-speak. CFLs are viewed on par as payday loans.

The only mattress we financed was via Macys and that is revolving, though their days of reporting CLs are long over.

Re: Will a mattress account -

Booner72 — Sat, 26 Nov 2011 19:22:56 GMT

llecs, do you mean FICO dings them harder than a regular installment or revolving? Thanks,

Re: Will a mattress account -

llecs — Sat, 26 Nov 2011 20:45:50 GMT

Ever so slightly harder. Even after a CFL is PIF, the ding will remain up through its deletion.

Re: Will a mattress account -

RobertEG — Sun, 27 Nov 2011 03:36:57 GMT

If, in reporting the credit, they use the standard definitions of revolving an installment, it would be simple to determine.

If a fixed amount of credit was contracted for with a fixed monthly payment over a fixed term, that is the definition of installment credit.

If the credit was extended as total line of credit available to you, and you used part or all of it to pay the bill, with your monthly payments revolving around the balance borrowed and owed, that is a classic line of revolving credit.

If it was clearly one or the other and they are reporting it differently, I would suspect you would have a basis for complaint.

I am kinda surprised that a mattress store would even be reporting to the CRAs.

Re: Will a mattress account -

Duke-of-Earl — Wed, 30 Nov 2011 06:09:08 GMT

@Booner72 wrote:
Be an installment or revolving?

I thought a "mattress account" meant "cash under the ..."!

This is actually about a mattress you bought? So did I, but charged to a CC. I always avoid those store-finance deals because they can turn into CFLs, more or less at random. I had one for some music equipment I had bought ten years before I started paying attention to my credit reports, and it seemed to be a fairly serious ding at that time. Got it deleted as outdated. Sleep well!

Re: Will a mattress account -

Booner72 — Thu, 01 Dec 2011 01:46:18 GMT

@Duke-of-Earl wrote:
@Booner72 wrote:
Be an installment or revolving?
I thought a "mattress account" meant "cash under the ..."!

This is actually about a mattress you bought? So did I, but charged to a CC. I always avoid those store-finance deals because they can turn into CFLs, more or less at random. I had one for some music equipment I had bought ten years before I started paying attention to my credit reports, and it seemed to be a fairly serious ding at that time. Got it deleted as outdated. Sleep well!

Ha Ha, Duke of Earl. I guess it does sound that way -

We haven't bought the mattress yet but before we do, if we do, and if we even use credit for it, I want to know what I'm getting into bed with.

Re: Will a mattress account -

AndySoCal — Thu, 01 Dec 2011 02:48:36 GMT

I would guess installment unless they are going to give you a credit card. If it were me I would a credit card I already had.

Re: Will a mattress account -

pizzadude — Thu, 01 Dec 2011 04:23:23 GMT

I hope that the mattress TL gives your score firm support, without too much bounce.

Ha. ha. ha. <sorry>