Consumer Finance Accounts

[MissLiz]

@AzCreditGuy  I already have an auto loan, so it shouldn't affect my credit mix and since it's already on my report (showing a balance) my score has already been penalized for having a CFA. 

[FlaDude]

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@MissLiz wrote:

@AzCreditGuy  I already have an auto loan, so it shouldn't affect my credit mix and since it's already on my report (showing a balance) my score has already been penalized for having a CFA. 

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All the loans that I suspect are CFAs have been paid off for over 4 years and I still get the reason code. I don't think they actually go away and improve your scores until they drop off 10 years after being closed.

[md_rebuild]

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@AzCreditGuy wrote:

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@MissLiz wrote:

@AzCreditGuy  That's interesting! We will see if my score drops after Affirm posts the paid off account. It'll be a month or more before that happens as I've just paid it off, but I will come back and update. 

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@MissLiz Well I can already tell you that your score will drop. You no longer have a loan, so you will penalized for that and than the CFA code will pop up as well, another ding. Diff lets us know how much for a drop 

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@AzCreditGuy @MissLiz   As I mentioned, I paid off around $10K on 2 CFAs (Best Egg).   I also still have a revolving loan that is active (NFCU Auto loan), so my mix is fine.   Equifax just updated yesterday (nice to get the alerts letting you know exactly what is happening) and my score dropped 5 points (701 to 696).   I'll be curious to see what happens with Transunion and Experian.

[MissLiz]

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@MissLiz wrote:

@AzCreditGuy  That's interesting! We will see if my score drops after Affirm posts the paid off account. It'll be a month or more before that happens as I've just paid it off, but I will come back and update. 

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@AzCreditGuy  My paid off Affirm account finally posted to EX (the only bureau it reports to) and my score dropped two points. 

[AzCreditGuy]

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@MissLiz wrote:

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@MissLiz wrote:

@AzCreditGuy  That's interesting! We will see if my score drops after Affirm posts the paid off account. It'll be a month or more before that happens as I've just paid it off, but I will come back and update. 

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@AzCreditGuy  My paid off Affirm account finally posted to EX (the only bureau it reports to) and my score dropped two points. 

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What is it coding as?

[MissLiz]

@AzCreditGuy  I'm not sure where to find that. On my 3B report it shows as "loan type - other"

[AzCreditGuy]

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@MissLiz wrote:

@AzCreditGuy  I'm not sure where to find that. On my 3B report it shows as "loan type - other"

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The only reports I see the CFA code on, are Experian 3B report and when you apply for CLI and get a report and it shows up as "Too many Consumer Finance Accounts"  My score was in the high 800s when I had my Sofi loan and when I paid in off, my scores dropped anywhere from 10 to 20 pts and the CFA code popped up. If I had another loan, the drop may not have been that bad. But no one knows how many pts a CFA drags you down, I think its BS that it stays with you for 10 yrs because Experian is an ancient system and doesnt want to reward consumers with the many new modern loan options out there and most of them are not CFA