topic Has anyone used Samsung Financing? in General Credit Topics

Has anyone used Samsung Financing?

elim — Sun, 10 Sep 2017 14:40:30 GMT

I get a deal on a pre-ordered Note8 and there is a 0% option with samsung finance. I won't use the option if it is either an HP or reports to CR's. Any experince?

Re: Has anyone used Samsung Financing?

Anonymous — Sun, 10 Sep 2017 15:14:50 GMT

No experience but can almost guarantee that's there will be a HP and most likely report.

Re: Has anyone used Samsung Financing?

elim — Sun, 10 Sep 2017 17:30:02 GMT

@Anonymous wrote:
No experience but can almost guarantee that's there will be a HP and most likely report.

Thanks Irish

I did more research and found " Samsung Financing Program Account issued by TD Bank, N.A."

TD bank = HP and I am firmly planted (9 months app free / 1 account in the last 15 months) so I just shelled out the cash. Will have the phone Oct 8.

Re: Has anyone used Samsung Financing?

Appleman — Sun, 10 Sep 2017 17:32:47 GMT

I have phones financed with AT&T with their Next program and they were not a HP and do not show up on my reports.

Re: Has anyone used Samsung Financing?

xenon3030 — Mon, 11 Sep 2017 00:22:49 GMT

If not in a hurry to buy a phone, wait for a few more weeks and buy a new one with a large discount on black Friday...

Re: Has anyone used Samsung Financing?

elim — Mon, 11 Sep 2017 11:21:24 GMT

@xenon3030 wrote:
If not in a hurry to buy a phone, wait for a few more weeks and buy a new one with a large discount on black Friday...

Probably the smart thing to do. But, anyone who owned the (exploding) Note 7 get's a little extra from Samsung on a pre-order. Not enough in my book but It's done.

Thanks for the reply

Re: Has anyone used Samsung Financing?

Anonymous — Wed, 13 Sep 2017 20:22:33 GMT

Not only would this be a HP and result in the account reporting to the CRAs, but there's a very good chance that it would be coded as a consumer finance account. These types of accounts can have long lasting negative impacts on your credit score

Re: Has anyone used Samsung Financing?

xenon3030 — Thu, 14 Sep 2017 03:26:32 GMT

Why does a consumer finance account degrade Fico score? Is it also the case if purchasing phones, etc. from some carriers like Verizon or AT&T (monthly payments requiring HP)?

Re: Has anyone used Samsung Financing?

Anonymous — Thu, 14 Sep 2017 04:42:45 GMT

CFAs have historically been viewed as "last resort" lines of credit, even if that isn't really the case today. As a result, they are adversely looked upon by the FICO algorithm. Many people have reported the negative reason code, "Presence of a consumer finance account" as a factor hurting their score.

If one is considering a purchase at a store and taking on a CFA to do it, they're better off using a 0% CC offer or similar means to make the purchase. Same end result cost wise, but not long lasting negative impact to your credit scores. Some feel that CFAs can even adversely impact score after the account is closed, as long as it is still on your credit report. This means that for 10 years following the closure of a CFA in theory it could still be negatively impacting your score.

Re: Has anyone used Samsung Financing?

Anonymous — Thu, 14 Sep 2017 09:09:59 GMT

@xenon3030 wrote:
Why does a consumer finance account degrade Fico score? Is it also the case if purchasing phones, etc. from some carriers like Verizon or AT&T (monthly payments requiring HP)?

No, because those payment arrangements do not report as an account to the CRAs, therefore it can not be considered a CFA

Re: Has anyone used Samsung Financing?

Anonymous — Thu, 02 Nov 2017 23:46:41 GMT

I've had the account for a little over 2 months now to finance a top of the line sound bar.

Yes, it definitely was a hard pull but as of this writing, they have not reported it to any of the CRAs.

If I remember correctly, my Target card was reeported within days of opening the account (also issued by TD Bank).

Re: Has anyone used Samsung Financing?

Anonymous — Mon, 13 Nov 2017 21:08:31 GMT

can you tell us which bureau they pulled for the samsung td account?

Re: Has anyone used Samsung Financing?

Anonymous — Tue, 14 Nov 2017 21:27:36 GMT

@Anonymous wrote:
I've had the account for a little over 2 months now to finance a top of the line sound bar.

Yes, it definitely was a hard pull but as of this writing, they have not reported it to any of the CRAs.

If I remember correctly, my Target card was reeported within days of opening the account (also issued by TD Bank).

Over the weekend, myFICO notified me that the Samsung Account has now been added to my credit report. Took them a little over 2 months to report the account *AND* they reported the initial opening purchase as the balance, not the current balance on the report date.

Re: Has anyone used Samsung Financing?

Anonymous — Tue, 14 Nov 2017 21:26:58 GMT

@Anonymous wrote:
can you tell us which bureau they pulled for the samsung td account?

They pulled Experian when I applied.

Re: Has anyone used Samsung Financing?

Anonymous — Wed, 15 Nov 2017 01:04:25 GMT

Thanks for that. It helps in my decision to wait on this. I have too many pulls on my Experian for now.