Samsung Financing dropped Credit Score

[sarge12]

I wish there was a way to warn everyone about CFA's and the damage they do to a CR. It is not even always a small company that is a CFA. I first noticed one given as the reason my mortgage scores were not higher...the presence of a CFA on my credit report. Investigation proved the culpret to be American Honda Financial. I bought a Honda Goldwing in 2010 and financed it with AHF at the dealership. The next day I called the credit union and refinanced it with them. So the CFA that I had a business deal with for one day, has caused some points lost for 10 years....ONE DAY!!!

Consumer Finance Accounts should be avoided at all times.

[Anonymous]

Interesting regarding American Honda Financial, Sarge. I've got 2 closed loans through them but don't recall ever seeing a CFA related negative reason statement related to my file when those accounts were open or now when they're closed but still on my reports.

[sarge12]

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@Anonymous wrote:
Interesting regarding American Honda Financial, Sarge. I've got 2 closed loans through them but don't recall ever seeing a CFA related negative reason statement related to my file when those accounts were open or now when they're closed but still on my reports.

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It surprised me as well when it showed as a factor that was hurting my score. Even though it identified them by name as a consumer finance account, I had to google it to confirm. It is no longer listed as a reason, so I do not know if it is still considered as a CFA or not, but it was a few years ago. It was only listed as what is hurting your score on the mortgage scores myfico 3b pull.

[SouthJamaica]

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@Anonymous wrote:

@Anonymous, sure ask as many questions as you'd like.  I am willing to share some information to help others as well as myself.

Thanks everyone for the input. I am pretty new to myFICO, so maybe I am not reading or understanding the alerts. Within a short period of time I did apply for several things... because I was excited that I improved my credit score. I didn't really see anything else that I applied for popup on my account though, just a few inquiries. I will share what I applied for very recently and what my alerts look like. As soon as I got approved for my Chase Credit Card, I went for Samsung and two cards that I've always wanted.

1. Chase Freedom Unlimited (Approved)
2. Samsung Financing (Approved)
3. Discover Card (Approved)
4. KOHLS (Approved)

Here is a screenshot of my previous Fico Alerts. It doesn't even show Chase/Discover/Kohl being added as accounts, just the Samsung; I now have both Chase/Discover cards in my wallet.

FICO ALERTS

I guess my score is going to be in a world of hurt after all I just did... Have mercy on my credit score soul...

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You're getting a lot of valid input from knowledgeable forum members, but my take is a little different:

1. I don't think it's the Samsung account that hurt you, so much as the combination of factors involving new credit.

2. I don't think you need to do anything radical or call anyone.

3. IMHO you should just take a deep breath and

(a) pay the Samsung account down to 9% or less of the original amount;

(b) maintain your credit cards as follows: let one report a small (9% or less) balance while the others report a zero balance;

(c) apply for no new credit for 6 + months.

I predict that your scores will come back.

[Revelate]

Just for reference my own datapoint where I have a CFA on EX/EQ:

My peak scores, AAOA 3 and change years at the time, overly thick file, clean, no inquiries at that point.

EQ FICO 8: 818

EX FICO 8: 825

Also I cleared 770 on the mortgage trifecta even with a few inquiries still on there back in January.

Ultimately a CFA is a *minor* penalty in the grand scheme of things... I agree with the advice to not open them, they are absolutely stupid as there's no way to even tell what is the CFA on one's report other than by educated guessing and process of elimination (I knew what mine was, a loan from Cashcall) as it's some presumably matching based on tradeline name in a database that isn't accessible by consumers.

Which sucks.  

It should be changed as all sorts of things are being flagged as CFA's as this thread highlights, but if you get one, it's not the end of the world and it won't prevent you from getting into the top tier on every relevant FICO model in existence if your file is otherwise clean and a little bit of age on it.

[Anonymous]

I agree. I wish i could go back in time.😭