Pardon my ignorance here, as I am a "newbie" (but I did a search on the terminology). My FICO score shows only one risk factor: "You have a consumer finance account on your credit report".
Problem is I can't understand which account would be considered a "consumer finance" account. I have ONLY mortgages and credit cards. I've never had any car loans, student loans, or ANYTHING else; no other credit accounts whatsoever. Could someone please help me understand this?
Thanks to everyone in advance, I really appreciate the help!
P.S. The only thing I could possibly think of is that when I purchased some houses, there are 2nd mortgages; but used for purchasing the houses, NOT taken out after I already owned them.
CFL are usually from places that have the word "Finance" or some variation in their name, but not always.
Wells Fargo Finance
You mention CC, any of those from a furniture store or something similar?
Even though it is listed as a risk factor, there is no evidence that your score is actually dinged for it and if your score does take a ding, the payment history, age of account, etc outweighs the bad.
Sidewinder, thank you for your prompt reply! All my cards are from "normal" credit card companies, no furniture stores or department stores, etc.
I also don't have any loans with any entity that has "finance" in thier name. The only loans I have are just the "purchase money" mortgages that I mentioned. Any other ideas why this message comes up?
Sidewinder, I really appreciate your help! THANK YOU!
I should clarify one thing - in my prior message, I mentioned the "purchase money" mortgages. These mortgages were initiated upon the purchase of the houses, not refinance second mortgages. They were "80-10-10" purchases. (10% cash down payment, 80% purchase money 1st mortgages, and 10% purchase money 2nd mortgages.)
I hope this helps clarify things a bit, as the only thing that I can possibly think of is if somehow those second mortgages were being interpreted by the bureau(s) as consumer finance loans. I can't think of anything else, but that is where I am drawing on your expertise (and others if they pipe in here?).
Thanks SO much once again!
This is what appears next to my consumer finance accounts.
bump. I saw a report with no finance companies whatsoever on it, but a "FICO®
Brand Score from Equifax" , supplied via DCU.org, still shows a reason code with the same wording as the OPs.
This particular report has a small student loan, a couple of equity lines of credit, a few personal lines of credit (all prime though), and no car loans or open mortgages.
Would appreciate any comments by the learned ones at Equifax, or anyone else with direct knowledge of what may be going on here. TIA.