@Roque04 wrote:What are examples of Consumer Finance Accounts outside of retail accounts? Is this the type of credit offered by retailers to pay off purchases rather than paying in full?
How long will one of these accounts stay on your report, how can you remove it and how much does it truly effect your score if you've had one and paid it off? It seems to me that once one of these is paid off, it should be removed and give the consumer positive benefit from creditors such as short term loan payoffs.
Affirm, Klarna, Afterpay.
If they report to the CR's, they will remain on the report for 10 years as far as I'm aware.
I know some three payment Affirm plans used to say they won't report to the CR's, but they got rid of that language in their help section of their website.
It can't both give positive benefit to your credit and be removed, those things are incompatable.
The main problem is that these services are classifed as CFA's and not installment loans which is a penalty to some profiles for FICO, which means they are toxic garbage potentially harmful for some credit profiles and typically nobody who cares about their credit should touch.
Just use a credit card and if you can't, you probably don't need to buy it.
It would be nice to have short-term no-interest options, but they aren't worth the cost of them being added to your credit report.
@GZG wrote:
@Roque04 wrote:What are examples of Consumer Finance Accounts outside of retail accounts? Is this the type of credit offered by retailers to pay off purchases rather than paying in full?
How long will one of these accounts stay on your report, how can you remove it and how much does it truly effect your score if you've had one and paid it off? It seems to me that once one of these is paid off, it should be removed and give the consumer positive benefit from creditors such as short term loan payoffs.
Affirm, Klarna, Afterpay.
If they report to the CR's, they will remain on the report for 10 years as far as I'm aware.
I know some three payment Affirm plans used to say they won't report to the CR's, but they got rid of that language in their help section of their website.
It can't both give positive benefit to your credit and be removed, those things are incompatable.
The main problem is that these services are classifed as CFA's and not installment loans which is a penalty to some profiles for FICO, which means they are
toxic garbagepotentially harmful for some credit profiles and typically nobody who cares about their credit should touch.
Just use a credit card and if you can't, you probably don't need to buy it.
It would be nice to have short-term no-interest options, but they aren't worth the cost of them being added to your credit report.
An auto loan can classify as CFA. Both Honda and Toyota have reported them as such. Pretty sure just about any loan can be marked a CFA.
Security Finance, Western Finance, World Finance are a few we have around here. The loan places we see in every town. They loan to people who couldn't get a credit card or bank loan, but they may charge eighty-something percent APR 
I have a bunch of old ones still hanging around on my report. One Main Financial may be borderline, they charged me twenty-something percent, and they show up as a CFA on my reports also.
They did help me get from nothin' to somethin', but now that I'm trying to get from good to better, they're kind of a nuisance weighing me down. I have more on TU than the other CRAs for some reason. If you look at the scores in my sig, in the beginning, TU was my highest score. That's because these old accounts were giving weight to my AoOA and AAoA. But once I moved into the mid-700's, TU became my lowest score and the only difference is that these CFA loans still showing up there.
Starting Score: EQ8 680, TU8 713, EX8 701
@Brian_Earl_Spilner wrote:
@GZG wrote:
@Roque04 wrote:What are examples of Consumer Finance Accounts outside of retail accounts? Is this the type of credit offered by retailers to pay off purchases rather than paying in full?
How long will one of these accounts stay on your report, how can you remove it and how much does it truly effect your score if you've had one and paid it off? It seems to me that once one of these is paid off, it should be removed and give the consumer positive benefit from creditors such as short term loan payoffs.
Affirm, Klarna, Afterpay.
If they report to the CR's, they will remain on the report for 10 years as far as I'm aware.
I know some three payment Affirm plans used to say they won't report to the CR's, but they got rid of that language in their help section of their website.
It can't both give positive benefit to your credit and be removed, those things are incompatable.
The main problem is that these services are classifed as CFA's and not installment loans which is a penalty to some profiles for FICO, which means they are
toxic garbagepotentially harmful for some credit profiles and typically nobody who cares about their credit should touch.
Just use a credit card and if you can't, you probably don't need to buy it.
It would be nice to have short-term no-interest options, but they aren't worth the cost of them being added to your credit report.An auto loan can classify as CFA. Both Honda and Toyota have reported them as such. Pretty sure just about any loan can be marked a CFA.
that sounds really unfortunate, even for not subprime loans?
I guess that's something I'll have to ask if I ever finance an auto loan
@GZG wrote:
@Brian_Earl_Spilner wrote:
@GZG wrote:
@Roque04 wrote:What are examples of Consumer Finance Accounts outside of retail accounts? Is this the type of credit offered by retailers to pay off purchases rather than paying in full?
How long will one of these accounts stay on your report, how can you remove it and how much does it truly effect your score if you've had one and paid it off? It seems to me that once one of these is paid off, it should be removed and give the consumer positive benefit from creditors such as short term loan payoffs.
Affirm, Klarna, Afterpay.
If they report to the CR's, they will remain on the report for 10 years as far as I'm aware.
I know some three payment Affirm plans used to say they won't report to the CR's, but they got rid of that language in their help section of their website.
It can't both give positive benefit to your credit and be removed, those things are incompatable.
The main problem is that these services are classifed as CFA's and not installment loans which is a penalty to some profiles for FICO, which means they are
toxic garbagepotentially harmful for some credit profiles and typically nobody who cares about their credit should touch.
Just use a credit card and if you can't, you probably don't need to buy it.
It would be nice to have short-term no-interest options, but they aren't worth the cost of them being added to your credit report.An auto loan can classify as CFA. Both Honda and Toyota have reported them as such. Pretty sure just about any loan can be marked a CFA.
that sounds really unfortunate, even for not subprime loans?
I guess that's something I'll have to ask if I ever finance an auto loan
I have loans (vehicles, personal, home) with several credit unions and a major bank. Every month myFICO tells me my CFAs balance has gone down. I have yet to figure out which loan it is because I'm not worried about it being that detrimental to my scores.
@GZG wrote:
@Brian_Earl_Spilner wrote:
@GZG wrote:
@Roque04 wrote:What are examples of Consumer Finance Accounts outside of retail accounts? Is this the type of credit offered by retailers to pay off purchases rather than paying in full?
How long will one of these accounts stay on your report, how can you remove it and how much does it truly effect your score if you've had one and paid it off? It seems to me that once one of these is paid off, it should be removed and give the consumer positive benefit from creditors such as short term loan payoffs.
Affirm, Klarna, Afterpay.
If they report to the CR's, they will remain on the report for 10 years as far as I'm aware.
I know some three payment Affirm plans used to say they won't report to the CR's, but they got rid of that language in their help section of their website.
It can't both give positive benefit to your credit and be removed, those things are incompatable.
The main problem is that these services are classifed as CFA's and not installment loans which is a penalty to some profiles for FICO, which means they are
toxic garbagepotentially harmful for some credit profiles and typically nobody who cares about their credit should touch.
Just use a credit card and if you can't, you probably don't need to buy it.
It would be nice to have short-term no-interest options, but they aren't worth the cost of them being added to your credit report.An auto loan can classify as CFA. Both Honda and Toyota have reported them as such. Pretty sure just about any loan can be marked a CFA.
that sounds really unfortunate, even for not subprime loans?
I guess that's something I'll have to ask if I ever finance an auto loan
Correct, we have data points of people qualifying for tier 1 and the loans are CFA. The dealer wouldn't be able to tell you. I highly doubt someone at the lender could tell you either.