Some auto loans financed through the manufacturer have gotten coded as a CFA also.
@Zoostation1 wrote:Some auto loans financed through the manufacturer have gotten coded as a CFA also.
Really? Well, that's just absurd. I wonder if that's something a borrower can have changed.
@indiolatino61 wrote:
@AirPodMax wrote:I used to be in a rock band, and we were all absolute slaves to Affirm for financing instruments and gear.
I haven't used Affirm in about two years now, but tonight opened up the app just for fun to check out my purchasing power and what not.
I wandered over to the purchase history and was shocked to discover that between 2017 and 2023, I opened and completed 25 different loans through Affirm.
At the end of the day, does this positively or negatively affect my profile? I'm curious how this moves the needle. From a newbie's perspective, I'd imagine it demonstrates trustworthiness with the 25 fulfilled loans with zero late payments, and I'd imagine it adds thickness (is that the term we use?) to my profile.
However, I'd love to hear from some people who actually know what they're talking about.
I've never used Affirm, but many of my friends and family have. I don't know if this is always true, but many said that only the first loan is reported to credit bureaus. All subsequent ones are not, unless you default. Please correct me if this is in error. In addition, they said their scores went up initially, but then went back down to the original level when the loan was paid. Thanks.
Well here's the deal a little bit of nuance is required.
If you take an affirm loan for say 12 months that is going to get reported but if you take a 0% interest loan that you pay off in one month that won't be reported. Similarly things like zip pay and sezzle do not report to the credit bureaus either. Basically if it's a zero interest one of those make four payments every two weeks kind of deals you're fine but if you take an actual loan and it has interest then it gets reported.
8/8/25
2/16/26
@Lou-natic wrote:
@indiolatino61 wrote:
@AirPodMax wrote:I used to be in a rock band, and we were all absolute slaves to Affirm for financing instruments and gear.
I haven't used Affirm in about two years now, but tonight opened up the app just for fun to check out my purchasing power and what not.
I wandered over to the purchase history and was shocked to discover that between 2017 and 2023, I opened and completed 25 different loans through Affirm.
At the end of the day, does this positively or negatively affect my profile? I'm curious how this moves the needle. From a newbie's perspective, I'd imagine it demonstrates trustworthiness with the 25 fulfilled loans with zero late payments, and I'd imagine it adds thickness (is that the term we use?) to my profile.
However, I'd love to hear from some people who actually know what they're talking about.
I've never used Affirm, but many of my friends and family have. I don't know if this is always true, but many said that only the first loan is reported to credit bureaus. All subsequent ones are not, unless you default. Please correct me if this is in error. In addition, they said their scores went up initially, but then went back down to the original level when the loan was paid. Thanks.Well here's the deal a little bit of nuance is required.
If you take an affirm loan for say 12 months that is going to get reported but if you take a 0% interest loan that you pay off in one month that won't be reported. Similarly things like zip pay and sezzle do not report to the credit bureaus either. Basically if it's a zero interest one of those make four payments every two weeks kind of deals you're fine but if you take an actual loan and it has interest then it gets reported.
This is from the Affirm website:
Affirm credit reporting: Plans originated before April 1, 2025
What information does Affirm report to the credit bureau?
Beginning April 1, 2025, all Affirm payment plans and associated repayment activity will be reported to Experian. Additionally, Affirm will begin reporting this information to TransUnion on May 1, 2025, and may report to other credit bureaus in the future. For more information on how plans originated after April 1, 2025, will be reported, click here.
Affirm currently reports some payment plan and repayment activity for plans originated prior to April 1, 2025 to Experian. Typically, your first monthly installment plan with Affirm is reported. After you’ve had at least one plan furnished, Affirm won’t report subsequent plans unless they become 30+ days overdue.
@indiolatino61 wrote:
@Lou-natic wrote:
@indiolatino61 wrote:
@AirPodMax wrote:I used to be in a rock band, and we were all absolute slaves to Affirm for financing instruments and gear.
I haven't used Affirm in about two years now, but tonight opened up the app just for fun to check out my purchasing power and what not.
I wandered over to the purchase history and was shocked to discover that between 2017 and 2023, I opened and completed 25 different loans through Affirm.
At the end of the day, does this positively or negatively affect my profile? I'm curious how this moves the needle. From a newbie's perspective, I'd imagine it demonstrates trustworthiness with the 25 fulfilled loans with zero late payments, and I'd imagine it adds thickness (is that the term we use?) to my profile.
However, I'd love to hear from some people who actually know what they're talking about.
I've never used Affirm, but many of my friends and family have. I don't know if this is always true, but many said that only the first loan is reported to credit bureaus. All subsequent ones are not, unless you default. Please correct me if this is in error. In addition, they said their scores went up initially, but then went back down to the original level when the loan was paid. Thanks.Well here's the deal a little bit of nuance is required.
If you take an affirm loan for say 12 months that is going to get reported but if you take a 0% interest loan that you pay off in one month that won't be reported. Similarly things like zip pay and sezzle do not report to the credit bureaus either. Basically if it's a zero interest one of those make four payments every two weeks kind of deals you're fine but if you take an actual loan and it has interest then it gets reported.
This is from the Affirm website:
Affirm credit reporting: Plans originated before April 1, 2025
What information does Affirm report to the credit bureau?
Beginning April 1, 2025, all Affirm payment plans and associated repayment activity will be reported to Experian. Additionally, Affirm will begin reporting this information to TransUnion on May 1, 2025, and may report to other credit bureaus in the future. For more information on how plans originated after April 1, 2025, will be reported, click here.
Affirm currently reports some payment plan and repayment activity for plans originated prior to April 1, 2025 to Experian. Typically, your first monthly installment plan with Affirm is reported. After you’ve had at least one plan furnished, Affirm won’t report subsequent plans unless they become 30+ days overdue.
Ouch. Affirm sucked before, this just makes it worse.
@Lou-natic wrote:
@indiolatino61 wrote:
@Lou-natic wrote:
@indiolatino61 wrote:
@AirPodMax wrote:I used to be in a rock band, and we were all absolute slaves to Affirm for financing instruments and gear.
I haven't used Affirm in about two years now, but tonight opened up the app just for fun to check out my purchasing power and what not.
I wandered over to the purchase history and was shocked to discover that between 2017 and 2023, I opened and completed 25 different loans through Affirm.
At the end of the day, does this positively or negatively affect my profile? I'm curious how this moves the needle. From a newbie's perspective, I'd imagine it demonstrates trustworthiness with the 25 fulfilled loans with zero late payments, and I'd imagine it adds thickness (is that the term we use?) to my profile.
However, I'd love to hear from some people who actually know what they're talking about.
I've never used Affirm, but many of my friends and family have. I don't know if this is always true, but many said that only the first loan is reported to credit bureaus. All subsequent ones are not, unless you default. Please correct me if this is in error. In addition, they said their scores went up initially, but then went back down to the original level when the loan was paid. Thanks.Well here's the deal a little bit of nuance is required.
If you take an affirm loan for say 12 months that is going to get reported but if you take a 0% interest loan that you pay off in one month that won't be reported. Similarly things like zip pay and sezzle do not report to the credit bureaus either. Basically if it's a zero interest one of those make four payments every two weeks kind of deals you're fine but if you take an actual loan and it has interest then it gets reported.
This is from the Affirm website:
Affirm credit reporting: Plans originated before April 1, 2025
What information does Affirm report to the credit bureau?
Beginning April 1, 2025, all Affirm payment plans and associated repayment activity will be reported to Experian. Additionally, Affirm will begin reporting this information to TransUnion on May 1, 2025, and may report to other credit bureaus in the future. For more information on how plans originated after April 1, 2025, will be reported, click here.
Affirm currently reports some payment plan and repayment activity for plans originated prior to April 1, 2025 to Experian. Typically, your first monthly installment plan with Affirm is reported. After you’ve had at least one plan furnished, Affirm won’t report subsequent plans unless they become 30+ days overdue.
Ouch. Affirm sucked before, this just makes it worse.
Agreed...my wife used Affirm specifically because it was not reporting, so it did not affect her utilization or new accounts parameters. She's not happy.
@Thomas_Thumb wrote:In-store (retail installment loan) financing is a common type of CFAs. They are frequently used for furniture, appliance purchases and home improvement projects. Many consumers opt in when offered with a 0% financing promotion.
Car dealerships have access to CFA loans available through institutions such as GE capital. The loan may carry higher interest rates or could be 0% incentive loans from the manufacturer.
Unfortunately, all CFAs are considered elevated risk by Fico. Probably because the classification includes payday loans and debt consolidation loans.
That's a big flaw in the models imo. Auto loans should inherently be treated as regular installment loan and not a CFA, regardless of whether it's from GE Capital, a bank, CU, etc. There mere fact that an auto loan can be in the same classification as a payday loan is unacceptable imo Obviously I can't change how they are coded, but to me it's one of the more egregious flaws.