Prioritization and 'consumer finance accounts'

[Anonymous]

FICO is telling me that my consumer finance accounts are hurting my score. I'm looking for advice on prirotizing to raise my score enough to refinance my mortgage and pay off several credit cards via equity (would save about $2000 per month). From my research this is what I think might qualify as a consumer finance account:

Affirm - just paid this off early

Best Egg - 20.99% - 2 months old

PayPal Credit - 23.99% - 7 months old

OneMain - 21.75% - 1 year old

Credit Union - 11.49% - 2 years old 

Here are my credit cards 

Amazon 4000/4200

Barclay 12000/12400

Macy's Amex 4000/4200

Lowes 850/1000

Credit Union 7300/7500

Amex 1900/2000

Best Buy 4000/4200

Costco 5500/6500

Home Depot 0/500

JC Penney 0/1400

I haven't had a late payment in over 8 years. Appreciate any help. 

[SouthJamaica]

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@Anonymous wrote:

FICO is telling me that my consumer finance accounts are hurting my score. I'm looking for advice on prirotizing to raise my score enough to refinance my mortgage and pay off several credit cards via equity (would save about $2000 per month). From my research this is what I think might qualify as a consumer finance account:

Affirm - just paid this off early

Best Egg - 20.99% - 2 months old

PayPal Credit - 23.99% - 7 months old

OneMain - 21.75% - 1 year old

Credit Union - 11.49% - 2 years old 

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It doesn't matter now. There's nothing you can do about that.  Closing them now won't accomplish anything.

[FireMedic1]

Welcome @Anonymous 

It would help if you'd list you cards with credit line and balance owed. Yes CFA's FICO doesnt care for. I believe Affirm, Best Egg, and One Main are considered CFA's. (Someone will correct me if I got it wrong) Pay them off and close them out. PayPal and the CU are not CFA's. List out your cards and the gang will work on getting you where you need to get refinanced.

[Anonymous]

I've updated my post with the credit cards and balances. Pandemic forced my wife's small business to close for half a year. My credit cards got clobbered as a result. 

[GatorGuy]

You need to focus on utilization and not CFAs. Your utilization is crushing your score.

Paying off a CFA will still show the CFA on your report until it's removed (up to 10 years).

[FireMedic1]

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@Anonymous wrote:

FICO is telling me that my consumer finance accounts are hurting my score. I'm looking for advice on prirotizing to raise my score enough to refinance my mortgage and pay off several credit cards via equity (would save about $2000 per month). From my research this is what I think might qualify as a consumer finance account:

Affirm - just paid this off early

Best Egg - 20.99% - 2 months old

PayPal Credit - 23.99% - 7 months old

OneMain - 21.75% - 1 year old

Credit Union - 11.49% - 2 years old 

Here are my credit cards 

Amazon 4000/4200

Barclay 12000/12400

Macy's Amex 4000/4200

Lowes 850/1000

Credit Union 7300/7500

Amex 1900/2000

Best Buy 4000/4200

Costco 5500/6500

Home Depot 0/500

JC Penney 0/1400

I haven't had a late payment in over 8 years. Appreciate any help. 

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All of those accounts outside of HD and JC Penney are considered maxed out basically. They need to be paid down. Sooner the better. What your paying in interest on all those accounts is thru the roof. As you pay down the balances you'll see score changes for the good. Known thresholds are Maxed 88.9%, 68.9%, 48.9%, 28.9%, and then 8.9%. The CFA's are a drop in the bucket right now. Good Luck!

[REDBOYYY56]

The general consensus seems to be that the 2-3 points per CFA should not be a deal-breaker if you're able to Maximize in all other categories!!