@Anonymous wrote:
Yes lenders will grant CFA's to those with weak credit profiles, but they'll also happily grant them (perhaps without consumer knowledge of their adverse impact) to people with strong credit profiles.
Perhaps that's the key: Maybe it's the lender that determines whether or not an account will be treated as a CFA? For whatever reason, certain lenders other than banks and credit unions trigger the CFA notification.
But then why would the CRAs deem some auto loans CRAs but not others from the same lender, captive or not? Does it have to do with the terms of the loan? It's a mystery!
@ridgebackpilot wrote:
@Anonymous wrote:
Yes lenders will grant CFA's to those with weak credit profiles, but they'll also happily grant them (perhaps without consumer knowledge of their adverse impact) to people with strong credit profiles.... Maybe it's the lender that determines whether or not an account will be treated as a CFA? ...
Yes, it is the lender. There is no indication that the terms of the loan matter AT ALL to the CRA when determining if an accout is a CFA. Only who created it. You could have 850 scores and get a 0% interest loan for any length, but if it came from the "wrong" lender, it could be a CFA.
But no one is going to tell you that when you're agreeing to terms. No one will tell you that the ratings agencies are going to penalize you by 25-50-75 points for taking a loan from this lender, instead of one with the same terms (or worse terms) from that lender.
.
