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when to apply for cc

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Anonymous
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Re: when to apply for cc



SpecFile wrote:
Oops sorry if that is the case.  Didn't mean to steer you in the wrong direction.  Now the mystery is solved.  My wife and I always wondered why our CRs had a consumer finance acct. listed.  Racked our brains for a while.  Has to be Rooms To Go if any of you have heard of that store.
 
Brammy and fused,
 
Why does a consumer finance company pull your score down?
 
Thanks for the info.


Message Edited by SpecFile on 09-08-2007 05:49 PM

I would like to know the answer to that one also.
Message 11 of 25
Anonymous
Not applicable

Re: when to apply for cc

here is the reply I got to one of my posts:
 
Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes.


Message Edited by montana on 09-08-2007 04:52 PM
Message 12 of 25
Anonymous
Not applicable

Re: when to apply for cc



montana wrote:
here is the reply I got to one of my posts:
 
Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes.


Message Edited by montana on 09-08-2007 04:52 PM


Thanks for the explanation Montana. I am glad I don't have one of them and now that I understand I won't be accepting any of them in the future.
Message 13 of 25
Anonymous
Not applicable

Re: when to apply for cc

Dont sleigh.  I had 7 thinking I was building credit not tearing it down
Message 14 of 25
Anonymous
Not applicable

Re: when to apply for cc

Thanks for the advice! I also heard that furniture store credit isn't the way to go. I also heard that if you purchase a house, your chances of getting credit is good. Is that true? If so, it doesn't make much sense because your debt to income ratio increases.
Message 15 of 25
Anonymous
Not applicable

Re: when to apply for cc



needtoknowmore wrote:
Thanks for the advice! I also heard that furniture store credit isn't the way to go. I also heard that if you purchase a house, your chances of getting credit is good. Is that true? If so, it doesn't make much sense because your debt to income ratio increases.

 
An installment loan coded as mortgage does greatly increase your score.  Something about stability or some such thing, that and you're less risk for bankruptcy with the possiblity of losing your house on the line.

Message 16 of 25
Anonymous
Not applicable

Re: when to apply for cc

Now that makes complete sense. Thank you, Brammy.
Message 17 of 25
Kat
Valued Member

Re: when to apply for cc

OK, here's a question for ya.  If my parent's take out a second mortgage or HELOC and included me as a co-signer/co-applicant, would it be listed on my CR as a mortgage loan?  
Message 18 of 25
Anonymous
Not applicable

Re: when to apply for cc

i think that would require you to be on the deed as well. but other more knowledgeable people would have to field that one.
Message 19 of 25
Anonymous
Not applicable

Re: when to apply for cc



Kat wrote:
OK, here's a question for ya.  If my parent's take out a second mortgage or HELOC and included me as a co-signer/co-applicant, would it be listed on my CR as a mortgage loan?  


 
It will be listed as a revolving line of credit I believe.  Dont think a HELOC carries any mroe weight than any other revolving line of credit but I could be wrong



Message Edited by Brammy on 09-08-2007 09:44 PM
Message 20 of 25
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