Finance Account

[Anonymous]

Posted this in Fico scoring forum. but thought I would get a faster response here,

Have a tradeline from Rome Fiance, opened in 2001.   Never late.   Account classification on the big 3 are as check, line of credit.   On my-fico it has revolving charge.   I have heard tls from finance companys can hurt your score.   This has perfect history, paid in full, last payment in 2004.   Should I try and have this removed or leave it alone?   I don't want to lose the age or perfect history but is it hurting me?  BTW, Tu has it has closed, EX and EQ has it as open.   I nevr closed it so technically it's still open.   I didi dispute with TU as it should read open, they deleted entire tl and then when I called them, they put it back on as closed  (same as before).

[Anonymous]

I think CFCs (Consumer Finance Companies) can contribute to reducing your FICO score, but so long as it's never late or overlimit, then it's a positive TL that is helping you.

The $64K question, and one to which I do not know the answer, is how much it helps and how much it hurts? 25 points up, then 10 points down, for a net 15 points up? I dunno. Just spitballing.

This would be one for the folks from FICO.

Applying for and obtaining "enough" CCs and installment debt, then closing this account and letting it lapse off your CRs would be the only way to get rid of the harm done by a CFC.

I find it more than a little bizarre that a collection, paid or not, goes away 7 years after it goes into default. But a CFC could be obtained, always paid on time or early over a period of several years, then closed remain for another 10 years, and all that time it's costing one FICO points. There's no disclaimer provided when obtaining a loan from a CFC.

It's completely Gump. You nevah know what you gonna git.

[Anonymous]

And as a corollary, my question would be, "What is a 'consumer finance agency'?"

No, I mean a precise technical definition. One that could be defended in court, out to at least three decimal places. What makes one revolving or installment account a "normal" credit account, while the one down the street gets slapped with the "consumer finance" classification? If I ran a company and did financing for my customers, anyone who put that label on me had better have an airtight justification, or they'd find themselves slapped with a product disparagement lawsuit.

[Anonymous]

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&message.id=6558#M6558

All in the eyes of the beholder, and Fair Isaac be holding the determination of what is a CFC. Well, FI and the CRAs.

Message Edited by Noah_Bodie on 07-13-2007 04:18 PM