Consumer finance accounts. I find this subject interesting. I know many companies with the word “finance” or “financial” in their name come up as such on credit reports. But generally those are companies that are above 36% interest rates. I have had a few different personal loans in my life from Avant, Prosper, and Best Egg. None of them ever had that negative connotation on my credit reports. Every one comes up and unsecured loan on my credit reports. And I’ve never had the reason code come come up too many personal finance accounts.
And the peer peer to peer companies don’t come up either as that. Many getting rates lower than banks for people with top credit scores. It would be interesting to find out what the major companies that come up as such from people on here. It’s old an outdated thinking to say only get loans from a bank. I say hogwash to that one. Some of the best rates are from online lenders. I personally think that it is way more overblown the amount of points taken off for such a tradeline in this changing market. And no one in here has ever been able to quantify how many points one loses in any of the FICO models. A manual review it may be a factor with some companies. Just food for thought and for a discussion in here.
