Consumer Finance Account

[Anonymous]

I totally agree with you, there shouldn’t be a penalty for that.

[Anonymous]

I used Affirm once in the past.  It was 0% for 12 months.  Paid it off in 6 months and it did not move my  experian credit score at all.  

[Anonymous]

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@Anonymous wrote:
OK let’s think about this. Why would someone use a finance company and pay a higher interest rate if they were able to use a bank or credit union and get a lower rate?

Now true enough it may be due to ignorance on some peoples part. However for many its because they cannot procure financing at a bank or credit union.

As a consequence when you use a finance company there is a negative marker applied and it does have a negative impact on your score.

It’s just like loan modifications are now negatives in version 9 and will reduce your score. Doesn’t matter if I agree with it, it’s the way it is.

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The problem is that Affirm, for example, often offers 0% financing at many places. In fact I was mattress shopping yesterday and came across multiple 0% for 12 month Affirm offers. 

[Cjethompson2017]

I think it's bs to be honest. If I am somebody who is having difficulty getting a loan from a bank, how else am I to raise my score? Get less than attractive financing from somebody else. But, if I pay on time and pay it off, why does it matter??

[Anonymous]

That's why its so unfair. Just like you take advantage of 0% financing and then get hit for utilization for saving money! But it is what it is.

Affirm is a bank tho right? I meant to go read that link and forgot... here I go...

[Brian_Earl_Spilner]

I really don't care if I have a CFA on my reports. If Affirm is gonna give me 0% financing on something, I'm taking it. Hell, right now they're offering me up to $2500 in 0% financing through some of their partners. 

[Iusedtolurk]

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@Brian_Earl_Spilner wrote:

I really don't care if I have a CFA on my reports. If Affirm is gonna give me 0% financing on something, I'm taking it. Hell, right now they're offering me up to $2500 in 0% financing through some of their partners. 

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Agree! Sometimes you have to make the choice between Finances and Credit Scores that works better for you at the time.

[Anonymous]

Finances over FICOs.

[Anonymous]

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@Anonymous wrote:
That's why its so unfair. Just like you take advantage of 0% financing and then get hit for utilization for saving money! But it is what it is.

Affirm is a bank tho right? I meant to go read that link and forgot... here I go...

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No, Affirm is literally the definition of a consumer finance company. 

[Anonymous]

Did not know that.