Killbadcredit Posted April 21, 2021 Share Posted April 21, 2021 (edited) Experian says that my Fico Auto Score 8 at 638. Also Fico Score Auto 2 at 654 are being held back because of a consumer finance account, is this like personals loans? I do have loans but there paid off as agreed. Just trying to really figure out why my scores don’t improve. Late payment was August of 2018 and none since, thank God. Edited April 21, 2021 by Killbadcredit Quote Link to comment Share on other sites More sharing options...
legaleagle2012 Posted April 21, 2021 Share Posted April 21, 2021 Usually a credit card or any credit extended to a consumer. (non business) Quote Link to comment Share on other sites More sharing options...
Killbadcredit Posted April 21, 2021 Author Share Posted April 21, 2021 (edited) Thanks legal eagle, I have some furniture paid off, personal loans paid off, and even my home smart cameras are financed by Fortiva. Anyway, I can improve my scores even with having these? Edited April 21, 2021 by Killbadcredit Quote Link to comment Share on other sites More sharing options...
hdporter Posted April 21, 2021 Share Posted April 21, 2021 (edited) 8 hours ago, Killbadcredit said: Experian says that my Fico Auto Score 8 at 638. Also Fico Score Auto 2 at 654 are being held back because of a consumer finance account, is this like personals loans? I do have loans but there paid off as agreed. Just trying to really figure out why my scores don’t improve. Late payment was August of 2018 and none since, thank God. When it comes to FICO scores, "consumer finance account" is a reference to a specific type of financing; it's a term used to refer to lending by "consumer finance companies" who predominantly engage in higher risk/higher rate consumer lending. I have one such account that kicked off the "consumer finance account" flag on my myFICO score report ... Affirm. I tapped the finance option to pay for an online purchase over 3 months with no finance charge, simply curious about its novelty. I had no idea that in doing so I would incur a modest FICO score penalty. As this suggests, the presence of such an account on your report triggers a FICO score penalty. The magnitude of that penalty is likely fairly small, particularly if you otherwise have a well rounded credit portfolio. (I imagine that the hit is harder on those with few tradelines comprised solely of revolving accounts.) One can infer the FICO scores the account negatively out of the concept "birds of a feather flock together". While there are good reasons why a strong credit worthy borrower might avail themselves of an Affirm account (as I did), the majority of their business and profit is associated with higher risk/rate products. FICO scores on statistical correlation, thus if Affirm customers (or CFA customers in general) are more likely to default on credit obligations, then as a customer of Affirm yourself you're tarred by the same brush. FICO recognizes that this isn't an iron clad relationship, but it's one that has some predictive value. As such, the score hit tends to be modest. And, any such impact will diminish with time until the account drops from your report at 10 years post closure. (If I were more concerned, I might ultimately argue with the CRA that because the account carries a FICO score penalty, it must be considered as having an adverse status under the FCRA and should be removed 7 years after the account established ... not sure that would get traction, and in any case, I'm not concerned.) It might be tempting to engage in efforts to manipulate the reporting so as to remove the account early. I'll suggest that such tactics bear risk in themselves and it's best to treat the account as a "nit" and let it be. You can confirm that relatively light impact the CFA score factor has by observing where it lies in the list of myFICO "negative score factors". For my scores where this is listed as a factor, it's relegated to the #3 or #4 (of 4) reason. Definitely small potatoes in the scheme of things. Edited April 21, 2021 by hdporter cashnocredit, MarvBear and nemo 3 Quote Link to comment Share on other sites More sharing options...
Killbadcredit Posted April 21, 2021 Author Share Posted April 21, 2021 So just for fun, Experian is right or making stuff up? I need to get my Fico Scores Auto 8 and 2 but if that’s the case I find it rather annoying? Quote Link to comment Share on other sites More sharing options...
DollarDog Posted April 21, 2021 Share Posted April 21, 2021 You filed for bankruptcy twice and keep financing stuff. Do you want to increase your credit score so you can borrow more money, finance more stuff, and plan for your third bankruptcy? Quote Link to comment Share on other sites More sharing options...
Sidewinder Posted May 19, 2021 Share Posted May 19, 2021 Mmmmmmmm, potatoes... centex 1 Quote Link to comment Share on other sites More sharing options...
Killbadcredit Posted May 19, 2021 Author Share Posted May 19, 2021 Apparently did t know that consumer finance accounts was viewed as bad. I was just trying to build credit, go figure. Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 20, 2021 Share Posted May 20, 2021 I sometimes get the "too many consumer finance accounts" score factor on some FICO models, and there's no apparent reason. Closest thing I have reporting is a Macy's store card. Don't worry about it, in the real world there is no practical consequence. Quote Link to comment Share on other sites More sharing options...
hdporter Posted May 20, 2021 Share Posted May 20, 2021 4 hours ago, cv91915 said: I sometimes get the "too many consumer finance accounts" score factor on some FICO models, and there's no apparent reason. Closest thing I have reporting is a Macy's store card. Don't worry about it, in the real world there is no practical consequence. "TMCFA" may just be the credit slut's version of a "cold sore" ... centex 1 Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 20, 2021 Share Posted May 20, 2021 5 hours ago, hdporter said: "TMCFA" may just be the credit slut's version of a "cold sore" ... I want to go on the record as stating that I've never gotten a cold sore from an encounter at Macy's. DebtFreeIn04 1 Quote Link to comment Share on other sites More sharing options...
centex Posted May 20, 2021 Share Posted May 20, 2021 20 hours ago, Killbadcredit said: Apparently did t know that consumer finance accounts was viewed as bad. I was just trying to build credit, go figure. That is RARELY going to be the sole reason given for a denial or why a score is low. Sort of like when Inquiries are cited. It is usually a third or fourth item on an adverse action notice... Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 20, 2021 Share Posted May 20, 2021 6 hours ago, cv91915 said: I want to go on the record as stating that I've never gotten a cold sore from an encounter at Macy's. Now, JoAnn Fabric... that's a different story. Warning: Aired on TV but may not align with your sensitivities. Click AYOR. Quote Link to comment Share on other sites More sharing options...
hdporter Posted May 20, 2021 Share Posted May 20, 2021 7 hours ago, cv91915 said: I want to go on the record as stating that I've never gotten a cold sore from an encounter at Macy's. Philly was never your haunt ... http://www.cruisinggays.com/philadelphia/areas/23655-macys-formerly-lord-taylor/ Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 20, 2021 Share Posted May 20, 2021 4 hours ago, hdporter said: Philly was never your haunt ... http://www.cruisinggays.com/philadelphia/areas/23655-macys-formerly-lord-taylor/ Says who? Quote Link to comment Share on other sites More sharing options...
hdporter Posted May 20, 2021 Share Posted May 20, 2021 11 hours ago, cv91915 said: I sometimes get the "too many consumer finance accounts" score factor on some FICO models, and there's no apparent reason. Closest thing I have reporting is a Macy's store card. My experience is that DSNB didn't trigger the "consumer finance" comment. Sure you don't have another relatively obscure account issued by an entity that also engages in consumer finance lending? For me, Affirm was the culprit. Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 20, 2021 Share Posted May 20, 2021 3 hours ago, hdporter said: My experience is that DSNB didn't trigger the "consumer finance" comment. Sure you don't have another relatively obscure account issued by an entity that also engages in consumer finance lending? For me, Affirm was the culprit. Potentially sketchy: - Macy's store card (open) - Discount Tire store card - Synchrony (closed) - Express store card - Comenity (closed) Also: - Secured credit union installment loan from way back when I met you fine people (closed) Aside from that, just a thousand M/V/AE/D, a collection of open/closed mortgages, two open HELOCs, two closed auto loans and my current car lease. Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 20, 2021 Share Posted May 20, 2021 ⬆️ Fun fact from that credit report review: The sum of my last 13 car lease payments is 20 times our current mortgage balance. Quote Link to comment Share on other sites More sharing options...
hdporter Posted May 20, 2021 Share Posted May 20, 2021 3 hours ago, cv91915 said: Potentially sketchy: - Macy's store card (open) - Discount Tire store card - Synchrony (closed) - Express store card - Comenity (closed) Also: - Secured credit union installment loan from way back when I met you fine people (closed) Aside from that, just a thousand M/V/AE/D, a collection of open/closed mortgages, two open HELOCs, two closed auto loans and my current car lease. All I can relate is that until I did a "why the hell not" retail purchase through Affirm, the presence of DSNB/Synchrony/Comenity on my report didn't trigger the "too many consumer finance" comment. Seems to me that among your M/V there were at least a couple of "oddball" cards. No chance one or more of those are flagged as also being a "consumer finance" lender? Quote Link to comment Share on other sites More sharing options...
hdporter Posted May 20, 2021 Share Posted May 20, 2021 3 hours ago, cv91915 said: ⬆️ Fun fact from that credit report review: The sum of my last 13 car lease payments is 20 times our current mortgage balance. I had the sense that our Holloween candy budget was larger than your outstanding mortgage balance ... cv91915 and centex 1 1 Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 20, 2021 Share Posted May 20, 2021 3 hours ago, hdporter said: All I can relate is that until I did a "why the hell not" retail purchase through Affirm, the presence of DSNB/Synchrony/Comenity on my report didn't trigger the "too many consumer finance" comment. Seems to me that among your M/V there were at least a couple of "oddball" cards. No chance one or more of those are flagged as also being a "consumer finance" lender? PayPal Extras MC Rack-U-10 Visa There are also two credit union credit cards, one open (PennFedd) and one closed (Enneffseeyou), but those wouldn't trigger the "consumer finance" flag, although they do make me look stupid and desperate. Quote Link to comment Share on other sites More sharing options...
hdporter Posted May 21, 2021 Share Posted May 21, 2021 13 hours ago, cv91915 said: PayPal Extras MC Rack-U-10 Visa There are also two credit union credit cards, one open (PennFedd) and one closed (Enneffseeyou), but those wouldn't trigger the "consumer finance" flag, although they do make me look stupid and desperate. Those are both Synchrony ... I'll throw my hands up as to what's triggering your "consumer finance" account flag. As far as PenFed, I think I take the booby prize with my $500 O/D LOC against a checking account I've never transacted on. Quote Link to comment Share on other sites More sharing options...
Killbadcredit Posted May 26, 2021 Author Share Posted May 26, 2021 I kid you guys not, I have a few personals loans that helped me report as positive payment. There all paid and never missed a payment t, however Experian says that too many consumer finance accounts are bringing score down, go figure. Quote Link to comment Share on other sites More sharing options...
cv91915 Posted May 26, 2021 Share Posted May 26, 2021 4 hours ago, Killbadcredit said: I kid you guys not, I have a few personals loans that helped me report as positive payment. There all paid and never missed a payment t, however Experian says that too many consumer finance accounts are bringing score down, go figure. This is a really minor score factor. My FICO 8 is at 850 more than it isn't lately, yet the "consumer finance" score factor pops up on other score models from time to time. I also have 2 inquiries under six months old on Experian, and that doesn't stop me from hitting 850 on FICO 8 either. Quote Link to comment Share on other sites More sharing options...
Killbadcredit Posted May 27, 2021 Author Share Posted May 27, 2021 Interesting, thanks for sharing. Guess they ain’t to bad on my credit. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.