topic Re: Consumer Finance Loans and how they impact your score in General Credit Topics

Consumer Finance Loans and how they impact your score

ozgirl — Mon, 25 Feb 2008 18:33:13 GMT

Does anyone know if it is worth it to take a loan through Citifinancial to payoff some higher interest debt? I know that consumer finance companies are a no-no on your credit report. What kind of a score hit could one expect?

Re: Consumer Finance Loans and how they impact your score

fused — Mon, 25 Feb 2008 19:02:56 GMT

ozgirl wrote:
Does anyone know if it is worth it to take a loan through Citifinancial to payoff some higher interest debt? I know that consumer finance companies are a no-no on your credit report. What kind of a score hit could one expect?

The hit would be minimal. Are you trying to pay-off high interest credit card debt?

Re: Consumer Finance Loans and how they impact your score

ozgirl — Tue, 26 Feb 2008 06:53:54 GMT

Yes, the interest rate on the loan is much lower than that of the CC. So it is probably worth it--yes?

Re: Consumer Finance Loans and how they impact your score

Anonymous — Tue, 26 Feb 2008 13:39:53 GMT

Saving $ trumps FICO score -

The initial FICO hit is minimized by the reduction in UTL- net points will most likely go up.

ozgirl wrote:
Yes, the interest rate on the loan is much lower than that of the CC. So it is probably worth it--yes?

Re: Consumer Finance Loans and how they impact your score

ozgirl — Wed, 27 Feb 2008 12:11:16 GMT

How are CFLs figured into Utilization? Are they treated like credit cards?

Re: Consumer Finance Loans and how they impact your score

Anonymous — Wed, 27 Feb 2008 13:20:06 GMT

CFL's are only on installment accouts-

Installment utilization is only a few points-

as far as installment UTL- treated like any other installment account-

ozgirl wrote:
How are CFLs figured into Utilization? Are they treated like credit cards?

Re: Consumer Finance Loans and how they impact your score

haulingthescoreup — Wed, 27 Feb 2008 13:35:47 GMT

Any chance that you could get the same or better deal from a CU or a bank?

I had a CFL from Wells Fargo Finance and paid it off in 8 months. I've never gotten a flag for it, but it's the only one, and all my scoldings are reserved for being late. And occasionally for my history (18 years overall, 4 years 11 months average) being too short.

Re: Consumer Finance Loans and how they impact your score

Anonymous — Wed, 27 Feb 2008 15:41:16 GMT

How hard is it to get a CFL? I just had an email from Citifinancial regarding one. I would LOVE to get my BOA card paid off and get rid of the 18% interest rate!

Re: Consumer Finance Loans and how they impact your score

fused — Wed, 27 Feb 2008 17:58:44 GMT

danikasmom wrote:

How hard is it to get a CFL? I just had an email from Citifinancial regarding one. I would LOVE to get my BOA card paid off and get rid of the 18% interest rate!

CFLs are an easy approval...basically a sub-prime loan. 18% is not bad for a CFL.

Re: Consumer Finance Loans and how they impact your score

Anonymous — Sat, 01 Mar 2008 01:28:05 GMT

In one month my Scores went from

TC TU EXP EQ

573 523 579

Re: Consumer Finance Loans and how they impact your score

haulingthescoreup — Sat, 01 Mar 2008 01:51:01 GMT

@Anonymous wrote:

How hard is it to get a CFL? I just had an email from Citifinancial regarding one. I would LOVE to get my BOA card paid off and get rid of the 18% interest rate!

They're very easy to get, and that's why your score is penalized for having them on your record. They are viewed as evidence of desperation (unfairly, IMO.)

Re: Consumer Finance Loans and how they impact your score

Anonymous — Sat, 01 Mar 2008 09:37:43 GMT

Hauling, If your loan thru WFF was their Cash On Demand it reports as revolving not as an installment loan. Reason: as you pay down balance, you increase the amount you can borrow again up to your original credit limit. It is a Line Of Credit.