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Do you have a Consumer Finance loan? Please post here.

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Senior Contributor

Do you have a Consumer Finance loan? Please post here.

I just had a conversation with some lending centers that many people have in the past identified as putting CFL (Consumer Finance Loans) titles on their credit reports. This is what I hear from all lenders alike. Among the included were Citi Financial and Citi Bank too.


LENDING CENTER INSTALLMENT LOANS
I believe Consumer Finance Title is for anyone who takes out a loan to pay off other debt with the exception of a mortgage or auto loan (unless combining multiple auto loans but not always and other factors can change this too)

If you take out a loan to pay credit cards, combine installments, or other debt that you need to combine or consolidate ** and the lender pays off debt for you, ** lender makes the check payable to another lender, ** if you tell them it is to consolidate bills, or even just to have extra cash (which could be considered a cash advance installment) the lender can choose these option titles in the computer which report CFL.

These same companies have told me no, we don't have to submit them as CFL. If you take out a loan to improve your home, or a personal loan for a project.. ie home improvement, a car loan, ect it is titled with a different source code. Citi Financial told me over the phone that they do offer non CFL loans too, just that mostly all customers come to them for consolidation type loans.

RETAIL INSTALLMENT LOANS
These bug me. I don't think they should be considered CFLs but I guess the large number of people that have retail loans (installments for beds, ect) also have other similar behaver on their credit reports. Retail Loans are generally CFL. Many retailers found out that if they call it a credit card and put the installment payments under revolving they get away with not being identified as CFL.. I am sure you have seen deals like this before and wondered why they put the loan on a credit card... This is one possibility for a reason why.

So lenders say they do both CFL and regular titled installments. I think the only way we can get to the bottom of this is for people who have CFL identifications on there credit report to post here to help all of us.

If you have a CFL on your credit reports please answer these 3 questions.
1. What lender put a CFL on your credit report?
2. What specif reason was the loan used for?
3. Who did the money go to, payable to you or another lender?

I am willing to bet that very few people if any will have CFL titles even from lenders that are known for CFLs for non cash, non consolidation type loans. BUT IF YOU DO please post too. I think this will put this issue to rest.

If you have taken credit from places like DELL for computers did they report as installment, revolving, CFL, ect. Lets find out who is CR friendly and who is not. But mostly this thread is about lending centers not Retail loans.

Thank you. Smiley Happy

Message Edited by ilovepizza on 04-16-2008 03:28 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Message 1 of 10
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Regular Contributor

Re: Consumer Finance Titles... Should we blame the lender?

I have a loan from American General and it says "Installment".  No mention of "Consumer Finance Loan" anywhere. (Only reporting on EQ & EX).
 
I'm pretty sure I told them it was to do some work on my home.  My debt is pretty low, so I know I didn't tell them it was for "consolidation".


Message Edited by shawnette on 04-16-2008 01:45 PM
Message 2 of 10
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Frequent Contributor

Re: Do you have a Consumer Finance loan? Please post here.

I have a Loan from American General and it shows on CR as Installment loan. The loan was for purchase of outdoor power equipment.This is how the deal was worked for me applied for credit thru, retailer granted credit from Am Gen they in turn PIF the retailer I repaid Am Gen In installments. The thing that I did not understand is I was approved for basiclly what is a credit line of $7500.00 but my purchase was only $1200.00.  On my CR'S it showed CL $1200 Bal $1200 100% UTL from the start this decreased my FICO score that should have shown my CL as $7500 any input on this one?
Message 3 of 10
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Regular Contributor

Re: Do you have a Consumer Finance loan? Please post here.



credit08 wrote:
I have a Loan from American General and it shows on CR as Installment loan. The loan was for purchase of outdoor power equipment.This is how the deal was worked for me applied for credit thru, retailer granted credit from Am Gen they in turn PIF the retailer I repaid Am Gen In installments. The thing that I did not understand is I was approved for basiclly what is a credit line of $7500.00 but my purchase was only $1200.00.  On my CR'S it showed CL $1200 Bal $1200 100% UTL from the start this decreased my FICO score that should have shown my CL as $7500 any input on this one?


 
You were qualified/approved for $7500, but you only borrowed $1200 as an installment loan (fixed amount).  If you want the $7500 line that you were approved for without taking it all at once, you would have to have the loan converted to a line of credit, which reports as "revolving".  AmGen probably will not do that without going through the whole app process again.

Message 4 of 10
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Moderator Emeritus

Re: Do you have a Consumer Finance loan? Please post here.



ilovepizza wrote:

If you have a CFL on your credit reports please answer these 3 questions.
1. What lender put a CFL on your credit report?
2. What specif reason was the loan used for?
3. Who did the money go to, payable to you or another lender?


 I have 3 different companies who I think are all reporting as a CFL.
 
1. Security Finance
2. Make ends meet during a layoff and pay off payday loan
3. Give directly to me
 
 
1. Heights Finance
2. Consolidate and extra cash
3. Some payable to other lenders, remaining to me
 
 
1. World Finance
2. Fix my vehicle
3. Payable to me
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Message 5 of 10
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Moderator Emeritus

Re: Do you have a Consumer Finance loan? Please post here.

FIRST CREDIT CORPORATION
DW got a Kirby Vac-
Made it joint account and then did not tell me about it-
missed the first 2 payments and I paid it off the 3rd month -
Suffered with these lates for 7 years though 2 mortgages.
 
This dropped off EXP Jan 1, Still on EQ and TU for 3 more years.
At least it's a positive account- NOW
Message 6 of 10
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Valued Contributor

Re: Do you have a Consumer Finance loan? Please post here.

I have an installment loan with my finance company but it does not report as a CFL although MYFICO recognizes it as a CFL! Go Figure!
 
Myfico said CFL is a loan given to people who otherwise could not retain credit elswhere and usually have high interest rate! My rate is at 22%! GEESH!
Rebuilding and Reducing Debt, is my game plan.
Message 7 of 10
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Established Contributor

Re: Do you have a Consumer Finance loan? Please post here.

Hi, None of my loans show as cfl's. Either show revolving, installment or LOC.
10/11/2017 EQ 640 TU 639 EX 652 12/10/2016 EQ 621 TU 607 EX 626 10/10/16 EQ566 TU591 EX 587
01/31/2008 EX 502 EQ 466 TU 481
3/14/2008 EX 578 EQ 539 TU 543
4/16/2008 EX 622 EQ 532 TU 578
5/19/2008 EX 604 EQ 591 TU 592
1/1/2009 EQ 625 EX 576 TU 569
02/13/2009 EQ 648 EX 617 TU 590
09/28/2009 EQ 568 TU 591
Thanks to all Fico supporters for your encouragement and advice
Message 8 of 10
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Moderator Emeritus

Re: Do you have a Consumer Finance loan? Please post here.

I don't think they are in any special category on your CR like installment and revolving are. I don't they are marked "CFL" on your CR.
 
Just when you get a score/report analysis, it is pointed out that you have a CFL.
 
Back in last August, I asked about CFL and didn't think any of mine were CFL as it wasn't mentioned in the "What's hurting your score" section. However, now that I've cleaned some things up and there are less things hurting, the fact I have a CFL is listed in the "What's hurting your score" section.
 
Because of the above situation, it leads me to believe that a CFL doesn't hurt your score that bad.
 
I think it's wrong that it hurts at all. While mostly high risk people do get CFL, it doesn't make you anymore high risk because you have one. It should strictly be the HISTORY of your credit, not the TYPE of credit.
 
Is it really important that you have a CFL with unreal interest rates? What is important is whether you make your payments or not.
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Message 9 of 10
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Moderator Emeritus

Re: Do you have a Consumer Finance loan? Please post here.

Yes- The positive payment history contributes more points than the CFL tag takes away-
 
BTW- EQ also has my 4 old SL's as CFL's
The 2 new consolidated ones are not-

sidewinder wrote:
I don't think they are in any special category on your CR like installment and revolving are. I don't they are marked "CFL" on your CR.
 
Just when you get a score/report analysis, it is pointed out that you have a CFL.
 
Back in last August, I asked about CFL and didn't think any of mine were CFL as it wasn't mentioned in the "What's hurting your score" section. However, now that I've cleaned some things up and there are less things hurting, the fact I have a CFL is listed in the "What's hurting your score" section.
 
Because of the above situation, it leads me to believe that a CFL doesn't hurt your score that bad.
 
I think it's wrong that it hurts at all. While mostly high risk people do get CFL, it doesn't make you anymore high risk because you have one. It should strictly be the HISTORY of your credit, not the TYPE of credit.
 
Is it really important that you have a CFL with unreal interest rates? What is important is whether you make your payments or not.



Message 10 of 10
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