CFA notation

[800goal800]

How do I know if an account I have is being categorized as a CFA ?  Where would I see this ?

[Anonymous]

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@800goal800 wrote:

How do I know if an account I have is being categorized as a CFA ?  Where would I see this ?

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Unfortunately, no way to know. It will be an installment loan and not a revolving account.

It generally is accounts straight through the manufacturer, like Honda/Ford or places like Ally, many student loan companies like Great Lakes or State ran SL servicers, short term "easy" loans like Affirm, or loans from places like SoFi, etc.

It took until all my SLs from 1 servicer aged off 10 years after they were closed to find out it was them that were the CFAs and the CFA negative reason code dropped from my reports.

Who do you have installment loans with? Open or closed, it does not matter, just as long as they are still on your CRs.

[800goal800]

@Anonymous   Im assuming by the names, these are CFA: American First Finance and CheckNGo.   I just never knew they were in their own " less desirable " category.   I have/had auto loans but I'm assuming those are different. 

[Anonymous]

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@800goal800 wrote:

@Anonymous   Im assuming by the names, these are CFA: American First Finance and CheckNGo.   I just never knew they were in their own " less desirable " category.   I have/had auto loans but I'm assuming those are different. 

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These are certainly possible but it also doesn't exclude major auto loan companies from coding as a CFA.  List everything on your report that is installment based.  Also, what scoring models/bureaus are you seeing these on?

[800goal800]

@Anonymous 

These are all installment based and are either open or closed auto loans except for the two in the original post. 

Commerce Bank - Auto Loan

BofA - Auto Loan

Cap One Auto Finance

Volvo Car Financial Services

All of this is from MyFICO 

Together Credit Union - Auto

Global Lending Services - Auto

VW Credit 

[Anonymous]

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@800goal800 wrote:

@Anonymous 

These are all installment based and are either open or closed auto loans except for the two in the original post. 

Commerce Bank - Auto Loan

BofA - Auto Loan

Cap One Auto Finance

Volvo Car Financial Services

All of this is from MyFICO 

Together Credit Union - Auto

Global Lending Services - Auto

VW Credit 

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It would be my guess that the ones remaining have potential to be a CFA along with the 2 in your original post.  There is no way of knowing right now which one(s) are coding as a CFA as already mentioned.

[Anonymous]

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@Anonymous wrote:

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@800goal800 wrote:

@Anonymous 

These are all installment based and are either open or closed auto loans except for the two in the original post. 

Commerce Bank - Auto Loan

BofA - Auto Loan

Cap One Auto Finance

Volvo Car Financial Services

All of this is from MyFICO 

Together Credit Union - Auto

Global Lending Services - Auto

VW Credit 

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It would be my guess that the ones remaining have potential to be a CFA along with the 2 in your original post.  There is no way of knowing right now which one(s) are coding as a CFA as already mentioned.

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I would also believe the culprit is Volvo amd VW. Maybe this global lending you list, too.

As mentioned above, it doesnt have to be a sleezy lender. Directly through auto manufacturer financing is generally considered a CFA.

Like I said abive, Ford, Honda, etc. This would include Volvo and VW.

Subvented financing (i believe) thru manufacturers, where you can get 0% financing, and generally have pretty low requirements to get financing, inclhding their "top tier" for 0%, is often a CFA. I have seen DPs of 660+ scores getting 0% financing.

Finances before fico. You want 0% financing, you should consider that over losing points on your score. For me and my SO the points were fairly significant, 20-40+ pts (depending on bureau and which score), but I would still say finances over fico. I also believe the hit could vary on the scorecard you are in. Many say it is likely a "small number of points", but we just don't have the DPs, and this was my own personal experience seeing the CFAs come off.

[800goal800]

So leasing or financing a car with the manufacturer is a potential "negative "

[Anonymous]

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@800goal800 wrote:

So leasing or financing a car with the manufacturer is a potential "negative "

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Absolutely.  The problem is that not every loan will code the same for every person.  Some have claimed that Honda Financial has coded as a CFA, others have not.  I know for a fact that on my reports, Ally(GM Financial) codes as a CFA.  Maybe others do not have this designation on their reports.  I know that I will never take the chance of adding another CFA on my reports.  It's like gambling and the question is "Do you feel lucky?"

[Anonymous]

Just a data point, I have 3 different American Honda Financial loans on my CR and none of them were coded as a CFA / I've never had a CFA related negative reason statement associated with my file.