In the Distant Past, Amex used to give a denial with a reason similar to "Too many consumer finance company accounts" to anyone who had active accounts from creditors such as CreditOne, Opensky, Fingerhut, etc. Some lenders and Fico, view using these types of predatory lender accounts as risky. For a while, even my own Citizens Bank account was viewed as CFA due to 3rd party servicing showing "FirstMark".
Last time I personally saw a denial for it on the forums can from AMEX. So while like anything else it can be overcame, those types of creditors served outside of the mainstream markets can slow progress.
@RootDet wrote:In the Distant Past, Amex used to give a denial with a reason similar to "Too many consumer finance company accounts" to anyone who had active accounts from creditors such as CreditOne, Opensky, Fingerhut, Lendingclub etc. Some lenders and Fico, view using these types of accounts as risky.
Last time I personally saw a denial for it on the forums can from AMEX. So while like anything else it can be overcame, those types of creditors served outside of the mainstream markets can slow progress.
CFAs apply to financing, not credit cards. Taking a 0% financing offer on Samsung's website could result in a CFA, depending on who underwrites and how they code it. The only time what cards you have would matter is during a manual review. Some mortgage lenders might look unfavorably on sub-prime accounts, but with everything becoming more computer-driven, the chances of it mattering are becoming less so.
@Anonymous wrote:
@Brian_Earl_Spilner wrote:
@RootDet wrote:In the Distant Past, Amex used to give a denial with a reason similar to "Too many consumer finance company accounts" to anyone who had active accounts from creditors such as CreditOne, Opensky, Fingerhut, Lendingclub etc. Some lenders and Fico, view using these types of accounts as risky.
Last time I personally saw a denial for it on the forums can from AMEX. So while like anything else it can be overcame, those types of creditors served outside of the mainstream markets can slow progress.
CFAs apply to financing, not credit cards. Taking a 0% financing offer on Samsung's website could result in a CFA, depending on who underwrites and how they code it. The only time what cards you have would matter is during a manual review. Some mortgage lenders might look unfavorably on sub-prime accounts, but with everything becoming more computer-driven, the chances of it mattering are becoming less so.
CFAs only count for installment loans period. Samsung is a revolving account and would not be coded as a CFA but rather a store card from TD Bank.
I went and looked at Credit One's site this morning and if they're trying to shed the predatory label, they're not doing themselves any favors advertising every card with 25.49% and claiming 2% cash back on one card but then when you actually look at the terms you only then see that it's on certain things like cell phone and utilities.
Since i don't use it, I wasn't aware it's a revolving tradeline, but just about everyone else that offers financing uses installment plans.
25.49% is better than what I've gotten from amex, synchrony, and cap1. And limitations on what gets a full 2% is not new. Plenty of 3/2/1 cards being recommended.
@Anonymous wrote:Yep- you read that right. I have a credit one card I've been considering closing. I've had multiple offers to increase my credit line which I have declined. I was also offered another card. I declined it as well. Now, I see an offer for an AmEx card. Could this really be a thing? Anyone know
If it's better than the card you're planning on closing, go for it.
Credit One is not an ideal lender, but if options are limited , and you dont mind paying fees (if there are any) short term, it will do it's job, especially if deposits for secured cards are not in the stars right now.
There are better lenders put there, but also there are far worse. There is no shame in having this card.
Sometimes we forget how limited options are during early stages of rebuild, and how difficult it is when no one wants to go near you.
Do what you need to do, and once better cards are within your reach, close it.
Good luck!
Not sure if you were around for this when i posted some time ago... thinking a few years ago actually when Credit One actually courted me with a somewhat prime offer from a subprime lender.... No AF, grace period, and even a rate lower than my Chase Amazon Prime Visa and i think it even had the 1% rewards... I was like This is interesting.. if i didnt know the other half of the coin (Lack of CS, games with payments posting, etc).. It actually was quite tempting... From their perspective having some more stable accounts even if they arent making as much money off the fees, brings in a known quantity of profit that can offset bad debt.... swipe fees are still swipe fees... They still have a little bit of an image problem with manual UWs... but paid on time is paid on time as far as FICO is concerned
-J
@joltdude wrote:Not sure if you were around for this when i posted some time ago... thinking a few years ago actually when Credit One actually courted me with a somewhat prime offer from a subprime lender.... No AF, grace period, and even a rate lower than my Chase Amazon Prime Visa and i think it even had the 1% rewards... I was like This is interesting.. if i didnt know the other half of the coin (Lack of CS, games with payments posting, etc).. It actually was quite tempting... From their perspective having some more stable accounts even if they arent making as much money off the fees, brings in a known quantity of profit that can offset bad debt.... swipe fees are still swipe fees... They still have a little bit of an image problem with manual UWs... but paid on time is paid on time as far as FICO is concerned
-J
Exactly. People just need to stop knocking these lenders. It can be a deterrent to those that don't have options to better lenders, as @Remedios pointed out. Obviously, we want people to be informed, but sometimes, people don't have much of a choice. They're a much better option than first premier.
@Anonymous wrote:
@Brian_Earl_Spilner wrote:People keep knocking credit one, but they're really trying to get away from the whole predatory lender image. Some of their offeringa are on par or better than many cards recommended on here. No AF, grace period, lower rates, etc. The only thing keeping them from being more embraced here is their image and poor software and customer service.
If you want an image of quality, you need to offer quality. Quality customer service, great rewards program and 100% real CLs (ever heard of a $34K CL on a Credit One card?). That has to be there first, and then years of shredding an old image. That's tough to do.
An issue with offering large lines for a card company not used to giving them is jumpy reactions. They may overreact when cardholders miss payments, or run up balances quickly. That hasn't been their market as far as I know and that will take some getting used to on their end.
Nobody said it would happen overnight, but there are worse options out there.