@Anonymous wrote:
I ordered myFICO report (Equifax) and have a question. On the 2nd page, where it describes what is affecting your score, it says that I have 3 open consumer finance accounts. These accounts are affecting my score negatively. I don't have any consumer finance accounts. My report is exactly the same as the previous times I ordered it, when it made no mention of any consumer finance accounts. Is this a glitch on myFICO's part? Thanks!
The pos/neg items on pages 2 and 3 of your report show the things most impacting your score at that moment. Some of these items (e.g. history, utilization) can easily shift to the good side or to the bad side, or even disappear or reappear, and are influenced based on your current scoring bucket. In relation to others within your bucket (aka scorecard). It so happens that most people do not have consumer finance accounts (or CFLs). This item should be dead last or next to it on the list of your negative items and the scoring impact of having CFLs report is very teeny tiny and isn't worth worrying about.
CFLs are consumer finance loans and the impact and input from lenders as being a negative item is that CFLs include payday loans. However, CFLs can also include other things which are no way related to a payday loan. Accounts from CitiFinancial, Beneficial Financial, or even Wells Fargo Financial are all considered CFLs because they give you a loan at a higher interest rate (though, IMO, are pale in comparison to payday loans and the APRs are even sometimes lower than many CCs out there...they shouldn't be included IMO). Also, accounts for furniture purchases and the like are also considered CFLs in many cases. The impact of CFLs remain for as long as that TL reports. If you think that none of the above applies, I would look at your report closely. Look at each field within your FICO report inside each account to see if anything reports like a CFL or has language as such.
