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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
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
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.
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