Confused by Equifax Score.....😳

[Anonymous]

Yep. As always, follow the money.

[jazzyvar84]

Hello. I’m not familiar with FCA loans. Why would it be negative? I’ve paid off other pieces of furniture from Kimbrell’s and it never hurt my score.

[sarge12]

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@jazzyvar84 wrote:
Hello. I’m not familiar with FCA loans. Why would it be negative? I’ve paid off other pieces of furniture from Kimbrell’s and it never hurt my score.

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It would not hurt fico 08 or fico09....the excuse given for being nagative on the fico 2, 4, and 5 is that consumer finance accounts have traditionally carried debt that would not be approved at banks, and charged very high interest for the added risk. In any case loans that are coded as a CFA is seen in those models as a negative, even if fully paid perfectly. Just the existance of the account on a credit report will lower those scores until it falls off the report 10 years after paid. If you want to say it is stupid beyond belief, you will get no argument from me, but it is what it is. If you have not checked the other scores and looked at the reason codes you would not know...well not until you started the mortgage process.

[sarge12]

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@jazzyvar84 wrote:
Hello. I’m not familiar with FCA loans. Why would it be negative? I’ve paid off other pieces of furniture from Kimbrell’s and it never hurt my score.

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Also, being financed at a furniture store is not a guarantee it is a CFA, but smaller furniture stores have to use finance companies as banks usually will not work with them. Banks are more interested in cars and houses, and big retailers usually have Synchrony or Comenity credit cards. Furniture and smaller appliance stores are more often than not using consumer finance accounts to secure financing.

[jazzyvar84]

Hello, 

I just spoke with the account specialist at the furniture store, and she informed me that becuause of my credit score that my loan is actually through WellsFargo. Does this mean that it could still report as a CFA on my credit report? 

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@sarge12 wrote:

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@jazzyvar84 wrote:
I see something on the furniture paperwork that says Vantage 3.0.

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Ding, ding, ding, ding....Congratulations, you have finally found some lender that actually does a Vantage 3.0 credit pull for loan approvals. To the best of my knowledge, nobody else has ever posted in these forums that a lender pulled from Vantage 3.0. The Vantage 3.0 score was created by the big 3 CRA's to compete with fico, but it never has seen any wide use. Now, about that furniture approval...that is almost certainly financed by a CFA(Consumer Finance Account) If you lack this little peice of knowledge, it can cost you for 30 years. A CFA is viewed as a negative on earlier versions of fico, even if always paid perfectly. The mere existance of a CFA on those versions of fico can, and will lower those scores. That is vital to know because those scores are used for the 3B pulls by mortgage lenders to set the interest rate offered on a mortgage, which is why that furniture debt can cost you thousands in added mortgage interest, and the CFA will be on your report for 10 years. It may be too late if you have already pulled the trigger on the furniture debt, but if so, perhaps this post might prevent someone else from doing so. If you have no intention of buying a house in the next 10 years, a CFA has no more effect on fico 08 or 09 scores then any other installment loan does.

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@sarge12 wrote:

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@jazzyvar84 wrote:
I see something on the furniture paperwork that says Vantage 3.0.

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Ding, ding, ding, ding....Congratulations, you have finally found some lender that actually does a Vantage 3.0 credit pull for loan approvals. To the best of my knowledge, nobody else has ever posted in these forums that a lender pulled from Vantage 3.0. The Vantage 3.0 score was created by the big 3 CRA's to compete with fico, but it never has seen any wide use. Now, about that furniture approval...that is almost certainly financed by a CFA(Consumer Finance Account) If you lack this little peice of knowledge, it can cost you for 30 years. A CFA is viewed as a negative on earlier versions of fico, even if always paid perfectly. The mere existance of a CFA on those versions of fico can, and will lower those scores. That is vital to know because those scores are used for the 3B pulls by mortgage lenders to set the interest rate offered on a mortgage, which is why that furniture debt can cost you thousands in added mortgage interest, and the CFA will be on your report for 10 years. It may be too late if you have already pulled the trigger on the furniture debt, but if so, perhaps this post might prevent someone else from doing so. If you have no intention of buying a house in the next 10 years, a CFA has no more effect on fico 08 or 09 scores then any other installment loan does.

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@sarge12 wrote:

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@jazzyvar84 wrote:
I see something on the furniture paperwork that says Vantage 3.0.

---

Ding, ding, ding, ding....Congratulations, you have finally found some lender that actually does a Vantage 3.0 credit pull for loan approvals. To the best of my knowledge, nobody else has ever posted in these forums that a lender pulled from Vantage 3.0. The Vantage 3.0 score was created by the big 3 CRA's to compete with fico, but it never has seen any wide use. Now, about that furniture approval...that is almost certainly financed by a CFA(Consumer Finance Account) If you lack this little peice of knowledge, it can cost you for 30 years. A CFA is viewed as a negative on earlier versions of fico, even if always paid perfectly. The mere existance of a CFA on those versions of fico can, and will lower those scores. That is vital to know because those scores are used for the 3B pulls by mortgage lenders to set the interest rate offered on a mortgage, which is why that furniture debt can cost you thousands in added mortgage interest, and the CFA will be on your report for 10 years. It may be too late if you have already pulled the trigger on the furniture debt, but if so, perhaps this post might prevent someone else from doing so. If you have no intention of buying a house in the next 10 years, a CFA has no more effect on fico 08 or 09 scores then any other installment loan does.

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@sarge12 wrote:

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@jazzyvar84 wrote:
I see something on the furniture paperwork that says Vantage 3.0.

---

Ding, ding, ding, ding....Congratulations, you have finally found some lender that actually does a Vantage 3.0 credit pull for loan approvals. To the best of my knowledge, nobody else has ever posted in these forums that a lender pulled from Vantage 3.0. The Vantage 3.0 score was created by the big 3 CRA's to compete with fico, but it never has seen any wide use. Now, about that furniture approval...that is almost certainly financed by a CFA(Consumer Finance Account) If you lack this little peice of knowledge, it can cost you for 30 years. A CFA is viewed as a negative on earlier versions of fico, even if always paid perfectly. The mere existance of a CFA on those versions of fico can, and will lower those scores. That is vital to know because those scores are used for the 3B pulls by mortgage lenders to set the interest rate offered on a mortgage, which is why that furniture debt can cost you thousands in added mortgage interest, and the CFA will be on your report for 10 years. It may be too late if you have already pulled the trigger on the furniture debt, but if so, perhaps this post might prevent someone else from doing so. If you have no intention of buying a house in the next 10 years, a CFA has no more effect on fico 08 or 09 scores then any other installment loan does.

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[jazzyvar84]

The credit specialist at the furniture store just informed me that my loan is actually through Wells Fargo bank because of my credit worthiness. Could this still report as a CFA loan?

[Anonymous]

I have seen many post in these forums from lenders using Vantage scores, this is far from the first. and I personally came across several when I was car shopping that used Vantage exclusively. One dealer pulled up a report on his screen and checked off to send the apps just to those that only use Vantage.

[sarge12]

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@jazzyvar84 wrote:

The credit specialist at the furniture store just informed me that my loan is actually through Wells Fargo bank because of my credit worthiness. Could this still report as a CFA loan?

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I do not think so, Wells Fargo is still a bank in spite of their devious past behavior. CFA is dictated by the fact that the lender is not a bank that is subject to more regulation and usually has stock holders. It is a finance company, that is less regulated by the Government and not FDIC insured.