@Anonymous wrote:
@RevelateSecond point, it's not Revolving vs. Charge that's a problem, it's Term = 1 month for the exclusion.
Can you elaborate on this at all? My Lowes card for term says "revolving" just like my other bank cards. Are you saying then that this store card would definitely be considered by the FICO algorithm (not ignored) even though the account type states "charge" rather than "revolver?" Does this mean that all store cards that are excluded from being counted state "1 month" under term? I've never looked at that field before until now.
Yeah. The charge card exclusion is explicitly Term = 1 month for FICO 04 and later algorithms. Basically any revolving tradeline that has a Term (or Terms on Experian) of 1 month, doesn't count for revolving utilization calculations. You normally see it for installment loans giving the repayment length, but it's applicable for revolving accounts too in this case.
Off a recent Experian report:
Amex Charge card: (excluded FICO 04/8/9, included FICO 98)
Terms 1 Months
Amex revolver: (counts for all)
Terms NA
Synchrony revolver: (counts for all)
Terms NA
My CFA installment loan:
Terms 47 Months
Auto Loan:
Terms 59 Months
My mortgage:
Terms 15 Years
@uga03 wrote:
That’s what throws me off...no tradeline reports as a CFA. Only in the score explanation where they list positive and nagative factors is there reference to having CFA’s as a negative impact. But I have no CFA’s, not a single one so I’m not sure what they’re referring to. I have 2 auto loans, one with Honda & the other through CO. 2 credit cards & 1 store card.
Nothing I have could be even remotely confused for a CFA.
Ah, I hate to break it to you but apparently loans from Honda Financial are now CFA's. That's explicitly what I was alluding to in my earlier post regarding some auto loans being recharacterized.
We saw a report of that a few weeks ago, took me by surprise TBH.
@Anonymous wrote:
When did that become the case with Honda Financial? I had a loan through them from March 2015 through this past March 2018 and to my knowledge it wasn't a CFA. I've never seen any negative reason statements pointing to a CFA, so I'm assuming that my Honda loan was not one.
It must've been recent but there was a thread over in General where the poster was swearing up and down it was Honda and there wasn't much else on the file as I recall.
Could be mistaken on that, hence suggesting "apparently"
If you have access to EQ FICO 04 reason codes would go look there as it's always been on that score regardless of scorecard for me, FICO 8 doesn't seem to care as much about CFA's in my experience on the Classic scores though it shows up in some industry options for me.