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Too many consumer finance company accounts

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Established Member

Re: Too many consumer finance company accounts

My accounts look like this: Newest first: DCU Platinum (credit card), Ally Financial (car loan), Pentagon Amex (credit card), Pentagon Federal Cre (this is the line of credit-it is my overdraft line of credit that I've had for over a year), Discover Bank (cc), Capital One Bank Usa (cc), Comenity Bank/Victoria's Secret (credit card), Fed loan Servicing (sl), American Honda Finance (car loan), Dept of Ed/Navient (sl-still showing open but it's closed),  Chrysler Capital (closed car loan), Dept of Ed/Navient (closed sl), Dept of Ed/Nelnet (closed sl), Dept of Ed/Nelnet (closed sl), Dept of Ed/Nelnet (closed sl), Ally Financial (closed car loan), Syncb/Lowes (store card), Ally Financial (closed car loan), Comenitybank/Buckle (closed store card), Dept of Ed/Navient (closed sl), Dept of Ed/Navient (closed sl), Dept of Ed/Navient (closed sl), US Dept of Ed (closed sl), US Dept of Ed (closed sl), US Dept of Ed (closed sl), Sallie Mae (closed sl), Sallie Mae (closed sl), First Sentinel Bank (closed car loan), Td Auto Finance (closed car loan), First Premier (closed credit card).  I have one thirty day late on Ally (the middle one) from 2013 which they agreed to remove but have not from Equifax yet, and one car repossession that is reporting as a charge off from 2016-this was Chrysler Capital.  I just opened two more credit cards that haven't reported yet, but both are from big banks.  One is Uber Visa from Barclays and the other is Cash Plus from US Bank. I have no idea what could be triggering a Consumer Finance Account code???

Message 11 of 38
Established Member

Re: Too many consumer finance company accounts


@FinStar wrote:
Do you presently have any closed installment loans displaying on your actual EQ report? There appears to be something that is driving the CFA code somewhere.

I don't have any that I know of.  Meaning, none that screamed cf.  I have never had a loan from a furniture company or a personal loan besides my Penfed overdraft line of credit.  Would that trigger that code? I've looked over my reports completely but I can't find anything. My car loan is reporting as a vehicle loan and student loans are reporting as student loans on the loan type.  I have a care credit loan I never used reporting as a charge account.  I have looked at every account and none of them say consumer finance.  My penfed line of credit reports as line of credit so maybe that's it.  Thanks for trying to help!

Message 12 of 38
Established Member

Re: Too many consumer finance company accounts


@mikesonthemend wrote:

Depending on your state, there is a decent chance an auto loan may report as CFA, even if secured by your car title.

 

Unable to locate the link, but I follwed a link on rebuilding provided somewhere here on myFico that discussed CFA impact on scores. Included in that hread was information on auto loans being reported as CFAs. If memory serves, and it often doesn't, this was mostly "Nanny" states in the Northeast and Great Lakes area. It was basically related to high interest rate used car loans and loans that exceeded the value of the car.

 

Some law designed to "protect" consumers and caused severe unintended consequences for consumers.


I live in Virginia.  I looked at my open car loan and all of my closed car loans and they all report as car loans.  My car loan right now that is open is through Ally and i have a 5.49% interest rate so it's not a high rate loan.

Message 13 of 38
Established Member

Re: Too many consumer finance company accounts


@Revelate wrote:

@HeavenOhio wrote:

@DaveInAZ wrote:

Any closed account wouldn't trigger that.

I think @Revelate will report a different experience. Smiley Happy


Yup, I still have that reason code (when I'm pretty enough to see it, to be clear it's more minor than even inquiries which is to say it's not hugely relevant) with a CFA that's been closed since July 2012.  Good lord, I still have 3 more years with that darned thing on EX/EQ, I truly hate the way CFA's are implemented and the fact so many more things these days count as a CFA and then you're stuck with a 10 year penalty.

 

Weak FICO, weak.


Haha it is weak.  This makes me feel better that it's not that big of a deal.  Thanks!

Message 14 of 38
Highlighted
Super Contributor

Re: Too many consumer finance company accounts


@Notyetabiggirl wrote:

@FinStar wrote:
Do you presently have any closed installment loans displaying on your actual EQ report? There appears to be something that is driving the CFA code somewhere.

I don't have any that I know of.  Meaning, none that screamed cf.  I have never had a loan from a furniture company or a personal loan besides my Penfed overdraft line of credit.  Would that trigger that code? I've looked over my reports completely but I can't find anything. My car loan is reporting as a vehicle loan and student loans are reporting as student loans on the loan type.  I have a care credit loan I never used reporting as a charge account.  I have looked at every account and none of them say consumer finance.  My penfed line of credit reports as line of credit so maybe that's it.  Thanks for trying to help!


No, the PenFed PLOC's do NOT report as consumer finance accounts.

 

I'm pretty sure it's one or more of the car loans.


Total revolving limits 720500 (594000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 15 of 38
Established Member

Re: Too many consumer finance company accounts

Thanks for responding.  All of the car loans are with regular banks.  The chrysler capital was a ridiculous rate (16.9%) but it is closed as a charge off (repossession).  The only open car loan is Ally at 5.49% which isn't as good as some of your alls but it's not a high rate loan, and the ones prior were approximately 8%.  I started to care about credit a year and a half ago lol.  It took me a while and I'm still learning.  Oh well, I guess I'll have to live with it regardless.  Thanks yall!

Message 16 of 38
Super Contributor

Re: Too many consumer finance company accounts

It’s 99% the Honda loan. 

Honda and Toyota are both known to code as CFAs because they will try to get anyone qualified for financing to try to get them in a vehicle. 

https://ficoforums.myfico.com/t5/General-Credit-Topics/Consumer-Finance-Account-Question/m-p/5289044...



01/2019:
10/2019:

Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 17 of 38
Senior Contributor

Re: Too many consumer finance company accounts


@Revelate wrote:

@HeavenOhio wrote:

@DaveInAZ wrote:

Any closed account wouldn't trigger that.

I think @Revelate will report a different experience. Smiley Happy


Yup, I still have that reason code (when I'm pretty enough to see it, to be clear it's more minor than even inquiries which is to say it's not hugely relevant) with a CFA that's been closed since July 2012.  Good lord, I still have 3 more years with that darned thing on EX/EQ, I truly hate the way CFA's are implemented and the fact so many more things these days count as a CFA and then you're stuck with a 10 year penalty.

 

Weak FICO, weak.


Well, I stand corrected. But for my Prosper loan I opened it in June 2014 and started getting those "too many CFA loans" message and when I paid if off in June 2015 those messages stopped. It's still listed in my closed accounts, but the only negative message I get in my Fico score is "loan balances too high", my DCU car loan opened in Oct. 2017 is at 70% of original loan amount. I'm hoping that goes away when I get it down under 50%.


Fico 08: 734/716/734 TU/EX/EQ
Message 18 of 38
Established Member

Re: Too many consumer finance company accounts

Yeah I have that one too lol. That one don’t bother me because I know my loan balances are too high. My student loans are ridiculous and never go down. They’re actually 3k higher than they were originally. My student loans go away after 120 payments bc I qualify for public service loan forgiveness so I don’t worry about that code but the other one bothers me because I don’t know why it’s there.
Message 19 of 38
Community Leader
Mega Contributor

Re: Too many consumer finance company accounts

Sometimes financing through Klarna and similar lenders will lead to CFA

 

Maybe you bought phone, laptop or something like that 

 

🤷‍♀️

 

 

EX 759 EQ 774 TU 753


Message 20 of 38
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