topic Re: What's hurting your FICO score... you have a consumer finance account on your credit report. in General Credit Topics

What's hurting your FICO score... you have a consumer finance account on your credit report.

ah32 — Tue, 07 Aug 2007 18:41:42 GMT

What the heck? Are they doing everything in their power to hinder us from establishing our credit again? I'm working so hard to re-establish my credit. I pulled my equifax credit report today because my score increased. The CSC credit basXXXds finally removed two collections from my report. Yay! MyFico explained one of the reasons my score is low is because I have two finance accounts on my report. Is this new? I know there was talk of this, but now I have another thing to worry about changing. Any ideas? Should I consider having a positive account removed? They have only been on there for a year.

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

chartley3 — Tue, 07 Aug 2007 18:49:06 GMT

This is part of the new FICO scoring system that they are implementing. Having Consumer Finance loans now show in a negative light because they now fall under the subprime loan area. I for one think it stinks.

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

ah32 — Tue, 07 Aug 2007 18:59:55 GMT

This is BS. I swear I think something should be done. We shouldn't have to wait for 30-45 days to have incorrect info removed! Being responsible with credit, no matter who it's with, should benefit our score. I'm so tired of all this credit crap. I'm at my wits end!!!

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

Anonymous — Tue, 07 Aug 2007 19:04:44 GMT

Yeah I just got the same message not too long ago... It's not right that you can't get help from anyone but these people, and then when you break down and accept their outrageous terms you are further penalized for working with them.

The system is against the consumer, up to this point there have been few improvements to benefit the people who are struggling.

Message Edited by Jamesus81801 on 08-07-2007 12:04 PM

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

fused — Tue, 07 Aug 2007 19:05:35 GMT

chartley3 wrote:
This is part of the new FICO scoring system that they are implementing. Having Consumer Finance loans now show in a negative light because they now fall under the subprime loan area. I for one think it stinks.

This is not new! FICO hasn't liked CFLs for as long as I can remember. Best thing to do is just treat it like any other account and never pay it late. Over time, it has less effect on your scores. Having other prime loans reporting paying or paid as agreed will help dilute the the negative effects of this CFL. My DW has two CFL's on her reports but her scores are very high and range from 772-785, FICO of course. Her other loans are two paid autos (never late), one paid secured loan (never late) and an open SL (never late).

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

fused — Tue, 07 Aug 2007 19:07:28 GMT

ah32 wrote:
What the heck? Are they doing everything in their power to hinder us from establishing our credit again? I'm working so hard to re-establish my credit. I pulled my equifax credit report today because my score increased. The CSC credit basXXXds finally removed two collections from my report. Yay! MyFico explained one of the reasons my score is low is because I have two finance accounts on my report. Is this new? I know there was talk of this, but now I have another thing to worry about changing. Any ideas? Should I consider having a positive account removed? They have only been on there for a year.

No! Keep the TL.

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

Anonymous — Tue, 07 Aug 2007 19:10:01 GMT

I have about 5 CFL's on my CR's. None of them have a late payment, I will say that they did help me out of trouble, but it was never brought to my attention that this would reflect negatively on my credit. I already was penalized by having no choice but to accept their crazy terms, and now I find out that they are going to sit there looking bad for 10 years AT LEAST!!! I think that if I'm suffering for them that they should fall off in 7 years, just like any other derogatory accounts or marks.

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

Anonymous — Tue, 07 Aug 2007 19:11:11 GMT

Jamesus81801 wrote:
I have about 5 CFL's on my CR's. None of them have a late payment, I will say that they did help me out of trouble, but it was never brought to my attention that this would reflect negatively on my credit. I already was penalized by having no choice but to accept their crazy terms, and now I find out that they are going to sit there looking bad for 10 years AT LEAST!!! I think that if I'm suffering for them that they should fall off in 7 years, just like any other derogatory accounts or marks.

Not that they should be looked at in a negative way.... Period!

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

fused — Tue, 07 Aug 2007 19:16:36 GMT

FYI having CFL's reporting does not tank your scores per say.

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

Anonymous — Tue, 07 Aug 2007 19:17:10 GMT

Im sorry but what is a CLF?? and why would it show neg for 10 years?

Message Edited by HappyDays on 08-07-2007 12:17 PM

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

fused — Tue, 07 Aug 2007 19:19:43 GMT

HappyDays wrote:
Im sorry but what is a CLF?? and why would it show neg for 10 years?

Message Edited by HappyDays on 08-07-2007 12:17 PM

Consumer Finance Loan (subprime). It's not derogatory. In fact, having them on your reports is less significant than too many inqs.

Re: What's hurting your FICO score... you have a consumer finance account on your credit report.

Anonymous — Tue, 07 Aug 2007 19:31:00 GMT

Ty. I always thought a loan was a loan & didn't make a difference in score as long as no derog.

I know CC counts more on scores.