I noticed this for the first time the other day when viewing my credit card FICO on EX's site.
Just saw my EX FICO 9 and I have an "Excellent" score, but in the list of reasons for my score, reason 3/3 is "Too many consumer finance company accounts." About how many points do you think I'm losing for these cons fin cos? Is it a flat penalty for having any at all or do I lose points for each co?
My score recently increased a lot. Maybe this caused another factor to be removed from the list and the consumer finance account factor was been bumped up the list?
Even if the cons fin acct is closed it's a negative? Why would it affect me if it's closed? Even if it was open, it seems so harsh to penalize someone for going through a lender that typically deals with high risk customers, especially if the account was closed with no lates.
@cr101 wrote:I noticed this for the first time the other day when viewing my credit card FICO on EX's site.
Just saw my EX FICO 9 and I have an "Excellent" score, but in the list of reasons for my score, reason 3/3 is "Too many consumer finance company accounts." About how many points do you think I'm losing for these cons fin cos? Is it a flat penalty for having any at all or do I lose points for each co?
My score recently increased a lot. Maybe this caused another factor to be removed from the list and the consumer finance account factor was been bumped up the list?
Even if the cons fin acct is closed it's a negative? Why would it affect me if it's closed? Even if it was open, it seems so harsh to penalize someone for going through a lender that typically deals with high risk customers, especially if the account was closed with no lates.
It is not "suddenly" causing issues. The reason code was always there, you just couldn't see it because you are only shown the top 4 reasons that your score is not higher
I have a CFA and my score got to 848 before I opened a new card so it is not "hurting" your score a whole lot IMO.
@dragontears wrote:
@cr101 wrote:I noticed this for the first time the other day when viewing my credit card FICO on EX's site.
Just saw my EX FICO 9 and I have an "Excellent" score, but in the list of reasons for my score, reason 3/3 is "Too many consumer finance company accounts." About how many points do you think I'm losing for these cons fin cos? Is it a flat penalty for having any at all or do I lose points for each co?
My score recently increased a lot. Maybe this caused another factor to be removed from the list and the consumer finance account factor was been bumped up the list?
Even if the cons fin acct is closed it's a negative? Why would it affect me if it's closed? Even if it was open, it seems so harsh to penalize someone for going through a lender that typically deals with high risk customers, especially if the account was closed with no lates.
It is not "suddenly" causing issues. The reason code was always there, you just couldn't see it because you are only shown the top 4 reasons that your score is not higher
I have a CFA and my score got to 848 before I opened a new card so it is not "hurting" your score a whole lot IMO.
Thanks. I never paid attn to the # of reasons given...Congrats on your 848!
FICO doesnt like CFA's. Even closed until it ages off you'll see that. Is it a lot of points? Not really. But with your scores no biggie. The avg over the yrs on here is around 10 pts +/- depending on profile. I've seen even ALLY and Audi auto loans rank as CFA's. Nice scores!!!!!!!!!!
@cr101 wrote:I noticed this for the first time the other day when viewing my credit card FICO on EX's site.
Just saw my EX FICO 9 and I have an "Excellent" score, but in the list of reasons for my score, reason 3/3 is "Too many consumer finance company accounts." About how many points do you think I'm losing for these cons fin cos? Is it a flat penalty for having any at all or do I lose points for each co?
My score recently increased a lot. Maybe this caused another factor to be removed from the list and the consumer finance account factor was been bumped up the list?
Even if the cons fin acct is closed it's a negative? Why would it affect me if it's closed? Even if it was open, it seems so harsh to penalize someone for going through a lender that typically deals with high risk customers, especially if the account was closed with no lates.
@cr101 I have often wondered the same things ( Is it a flat penalty for having any at all or do I lose points for each co? )when I started to learn more about credit.
I have 3 in total (when I started rebuilding I got them for credit mix but didn't know about the CFA impact).
At least @dragontears impressive score of 848 would suggest they don't have a massive negative impact.
THE THING IS..... (a conclusion I came to one day)...
A derog account impacts your credit for 7 years.
A CFA paid perfectly and closed would still negatively impact your score (although slightly) for a minimum of 10 years.
So you would actually have a GOOD account negatively impacting you at least 3 more years than a derogatory account.
This definietly makes no sense at all.