topic Re: Help understand this factor. in General Credit Topics

Help understand this factor.

yam1rts — Sun, 01 Dec 2024 19:55:47 GMT

My score adds some input as to why I have that score and states this is what is hurting it. Does anyone know what is considered as this product?

"Consumer Finance Company Loan"

Re: Help understand this factor.

GZG — Sun, 01 Dec 2024 20:00:58 GMT

@yam1rts wrote:
My score adds some input as to why I have that score and states this is what is hurting it. Does anyone know what is considered as this product?
"Consumer Finance Company Loan"

usually it's something like affirm, afterpay, klarna, some types of student loans or car loans can be a "consumer finance account" it's not something you can truly go out of your way to avoid if you already have one

if that is your 2nd reason, they really don't have much to complain about about your file, so I wouldn't put too much worry about it. there's a small fico score penalty for having one that will only go away when you have 0 of those types of accounts on your report, but it's really a small penalty, I wouldn't worry at all about it.

Re: Help understand this factor.

citymunky — Sun, 01 Dec 2024 21:47:49 GMT

@GZG wrote:
@yam1rts wrote:
My score adds some input as to why I have that score and states this is what is hurting it. Does anyone know what is considered as this product?
"Consumer Finance Company Loan"

usually it's something like affirm, afterpay, klarna, some types of student loans or car loans can be a "consumer finance account" it's not something you can truly go out of your way to avoid if you already have one

if that is your 2nd reason, they really don't have much to complain about about your file, so I wouldn't put too much worry about it. there's a small fico score penalty for having one that will only go away when you have 0 of those types of accounts on your report, but it's really a small penalty, I wouldn't worry at all about it.

I found from this forum that services like Affirm, Afterpay and Klarna tend to be more of risk in FICO's eyes. I only used these services a few times in the past, but I made sure that is the 0% APR plan that was paid off in 4 or payments. Those plans normally don't report to the CRAs. As soon as payment plans includes interest, expect it to be reported.

Re: Help understand this factor.

yam1rts — Tue, 03 Dec 2024 01:57:52 GMT

Let me add, from 2015 to 2018, I got (4) “RISE Credit” personal loans. I’m now thinking that’s what it is, despite being paid off since 2019. Any thoughts?

Re: Help understand this factor.

HeavenOhio — Fri, 06 Dec 2024 02:37:17 GMT

@yam1rts, you can also get the "consumer finance account" ding if you finance a vehicle through a dealer. I have a loan from GM Financial, the only loan on my credit report. The consumer finance notation was present on a bunch of my scores until they rose enough for myFICO to not show any reason codes.

Despite the consumer finance loan, I still have ten 850 scores (all FICO 8s, all FICO 9s, two FICO 10s, and two FICO 10Ts). My Experian FICO 8 Bankcard score has hit 900 with this loan present, but it's currently at 898 due to a second credit card balance.

Re: Help understand this factor.

yam1rts — Fri, 06 Dec 2024 09:16:03 GMT

@HeavenOhio wrote:
@yam1rts, you can also get the "consumer finance account" ding if you finance a vehicle through a dealer. I have a loan from GM Financial, the only loan on my credit report. The consumer finance notation was present on a bunch of my scores until they rose enough for myFICO to not show any reason codes.

Despite the consumer finance loan, I still have ten 850 scores (all FICO 8s, all FICO 9s, two FICO 10s, and two FICO 10Ts). My Experian FICO 8 Bankcard score has hit 900 with this loan present, but it's currently at 898 due to a second credit card balance.

Excellent, thank you!