Consumer Finance Account

[Anonymous]

Hey all.

I just got a score watch alert that said: You have a consumer finance account on your credit report.

My score dropped by nearly 18 points because of this. Anybody know what this means? My most recent app for credit was about 2 months ago, but I already saw that on my credit report.

[Tikon]

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@Anonymous wrote:

Hey all.

I just got a score watch alert that said: You have a consumer finance account on your credit report.

My score dropped by nearly 18 points because of this. Anybody know what this means? My most recent app for credit was about 2 months ago, but I already saw that on my credit report.

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A consumer finance account is a high risk loan reporting on your credit. Things like store loans for items, high risk car loans, certain signature loans can report as CFAs. They hurt your score even if you pay them on time. Unlike a traditional car loan, for example, which exactly diversifies your credit and sets a payment history, CFAs are seen as a desperate type of credit. You need to pull your report and see which trade line has CFA notation. You might be able to contact the company and see about removing the notation.

[Anonymous]

Thanks for the review.

I called MyFico today. The manager was extremely helpful. (Thanks Olga!!!).  She explained which account it was and gave me further instruction. I'm going to write the company and see if I can have it removed. I was never late, paid in full, but the account is only 6 years old. I'm hoping I can get it removed. I will update when I hear back.

Thanks!

[llecs]

Lenders like Wells Fargo Financial, CitiFInancial, Beneficial, One Main Financial, and a few other "Financials' out there report as a CFL (or CFA). The ding is relatively minor. In most cases, the age of the TL helps more than the ding of the CFL hurts and you can actually lose points if you get one removed. If I had one, and if it was younger than my AAoA, I'd ask the OC to remove it via a GW. They'll continue to report and FICO will continue to see it as a negative for as long as it reports (up to 10 yrs roughly after closure).

[Anonymous]

Im sorry, but what is an OC?

The age of the consumer finance account is 6 years, and my oldest account is 10 years. I just mailed off a Goodwill letter to the company asking them to remove it. I hope that was the right move. Cant wait to hear back.

[llecs]

OC = original creditor

[Anonymous]

Thanks