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CitiFinancial loan letter

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Anonymous
Not applicable

Re: CitiFinancial loan letter

I have a Citifinancial "signature loan" from about 5 years ago on my CR that is just what you outline here.  It is listed as a negative on my FICO reports:
 
You have a consumer finance account on your credit report.

Consumer finance companies typically grant loans to people with poor credit histories. Their customers often cannot get loans from traditional lending companies such as banks or credit unions. These are often high-interest loans because the consumer finance company is assuming more risk by lending to people with less than perfect credit.

The fact that you have a consumer finance company loan on your credit report means that you represent a higher risk to lenders than someone with no consumer finance loans. Even if this consumer finance account is closed, it will still lower your FICO score. However, its impact on your score will lessen as time passes.

 

 Only 12% of FICO High Achievers have a consumer finance account.
 
Message 11 of 15
Anonymous
Not applicable

Re: CitiFinancial loan letter

Thank you for that info. I just burned that letter after reading your reply hence the case is closed.
Message 12 of 15
Anonymous
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Re: CitiFinancial loan letter

 
Be very careful with these types of loans. 
 
My friend has one of these CitiFinancial loans, and we recently discovered that they had set the minimum payment amount so low that he would never pay off the principal.  I think the loan calculator we were using actually laughed at us.  At 27% interest, and adjusting for an eventual payoff, he was set to pay more than 50K in interest on a 10K loan over 20 years.
 
 
Message 13 of 15
erikwik
New Member

Re: CitiFinancial loan letter

Is there a difference if the CitiFinancial letter comes to someone saying it is a fixed rate for the life of the loan as opposed to a flexible interest rate? Are all CitiFinacial loans viewed as a negative ob CR's?
Message 14 of 15
Anonymous
Not applicable

Re: CitiFinancial loan letter

I wouldn't risk it unless desperate for money.
Message 15 of 15
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