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@Pikaboo-icu wrote:
And yes, I believe having several hurts more, perhaps only one wouldn't cause damage. I get the scoring note: "Too many CFAs"
I'm assuming you didn't grab your score after your first CFA showed up and then again after others did? It would be cool to know the impact of one verses multiples, but I'm sure that's very hard to isolate and most of the time people that take on CFAs don't even realize that they're doing so.
When you said "Too many CFAs" can you clarify the exact wording of the negative reason statement you're seeing and what the source of that statement is? I believe I've see the negative reason statement that says something like "Presence of a Consumer Finance Account" but not one that references "too many." I'm just wondering if that reason code actually changes when going from 1 to 2 or something.
@Anonymous wrote:
@Pikaboo-icu wrote:
And yes, I believe having several hurts more, perhaps only one wouldn't cause damage. I get the scoring note: "Too many CFAs"
I'm assuming you didn't grab your score after your first CFA showed up and then again after others did? It would be cool to know the impact of one verses multiples, but I'm sure that's very hard to isolate and most of the time people that take on CFAs don't even realize that they're doing so.
When you said "Too many CFAs" can you clarify the exact wording of the negative reason statement you're seeing and what the source of that statement is? I believe I've see the negative reason statement that says something like "Presence of a Consumer Finance Account" but not one that references "too many." I'm just wondering if that reason code actually changes when going from 1 to 2 or something.
No, I didn't sorry. That would have been helpful but I wasn't monitoring my score at the time and was unaware the loans paid early would be viewed as neg. I was a dope and thought they would be helpful.. UGH
On My Fico it just says: Presence of a CFA on a few other sites, it states: Too many CFAs. Experian's site and another, I can't recall of the top of my head but I'll watch for it when I do the rounds & check my scores again. It's a site offered by one of my credit cards, I just can't recall which one atm. The only CB they report on is EX.
@Anonymous wrote:
@Pikaboo-icu wrote:
And yes, I believe having several hurts more, perhaps only one wouldn't cause damage. I get the scoring note: "Too many CFAs"
I'm assuming you didn't grab your score after your first CFA showed up and then again after others did? It would be cool to know the impact of one verses multiples, but I'm sure that's very hard to isolate and most of the time people that take on CFAs don't even realize that they're doing so.
When you said "Too many CFAs" can you clarify the exact wording of the negative reason statement you're seeing and what the source of that statement is? I believe I've see the negative reason statement that says something like "Presence of a Consumer Finance Account" but not one that references "too many." I'm just wondering if that reason code actually changes when going from 1 to 2 or something.
Found another source of that verbiage: Wells Fargo Fico Score. It does say "one or more" but I still think having several is more harmful, however, it's just a theory. I find it hard to believe one would cost me 20-30 points.. I believe my penalty is closer to 30.
Sorry for jacking your thread Queen. "Twas unintentional.
Tough to say with FICO scoring what exactly the algorithm is looking at. One would think that (say) 5 or 6 different 30 day late payments would result in a lower score than just 2 different 30 day late payments on otherwise identical profiles, but with diminishing returns the adding of 3, 4, 5 etc. really isn't relevant to scoring and often results in little to no additional adverse scoring impact.
But that's late payments and doesn't have anything to do with CFAs.
CFAs are Consumer Finance Accounts... you'll typically find these offered through places where once may want to finance a purchase without taking out a loan/CC. A good example of this would be purchasing furniture at a furniture store, or perhaps a piece of electronics at an electronics store. Such a store may not have it's own [store] CC, but may offer financing for a purchase. Historically, CFAs were "last resort" types of credit, typically used by those that couldn't otherwise obtain credit for such purchases, or be able to make the purchases without the CFA. As a result, CFAs were always viewed negatively by the FICO algorithm.
I don't really think a CFA these days is really indicative of anything adverse under many circumstances. I bought furniture back in 2013 or so and went into the store with every intention of using cash, but the salesman pushed their store financing on me. He told me it was 0% for 12 months or whatever, that it would help build my credit, etc. At the time I knew nothing about FICO scores, but I figured I could just use the store financing and pay the thing right off. I ended up paying it off in half the time. Fortunately, the account was never actually coded as a CFA, so I never saw any adverse scoring impact.