I recently went through a lean time and needed to get some $ from a finance co. (they sent me a pre-approval letter for $6K). My score plummeted 33 POINTS as soon as they reported!!!! What the.....!!? I have NO LATES, but a number of new accounts... is this normal!! I was about to apply for a significant sized equipment loan and now I am sure that this will squelch any chance of it. Ideas? Suggestions? Thanks.
"THEY" say a FINANCE COMPANY even PAID AS AGREED will hurt your score...I DON'T SEE THE LOGIC!!! It might be SUB-SUB PRIME... People who get SUB PRIME credit cards don't take a "HIT" for a PAID AS AGREED account!!!
Re: Finance Co. Loan drops score 33 It is sub-prime, but I did not care since I only intend to have it for about 2-3 months. However, I did not think it would rock my score like this!!! [sigh] Do you think my score will rebound if I pay it in full? This SUCKS!
Well, it seems like the EVIL Experian is the only CRA that dropped it that far. EQU dropped it three points (although it was just reported yesterday, so maybe if there's a delay in the FICO calcs it will drop further).
How does the FICO calcs know if it's prime, sub, or sub-sub prime? Anyone know if paying it to zero will make my scores rebound?? I figured it would help to have an installment loan (it's my only installment type loan) and pay it timely and shorten the repay. [sigh]
F.I.C.O. decides how to calculate the account... It is amazing that you would have been better off with a SUB-PRIME credit card...(NO 33 PT "HIT")
I had posted on this before but loans from places like beneficial,citifinancial, american general, ect will hurt your score badly and will not go up at least right away even if you pay them.
[[I had posted on this before but loans from places like beneficial,citifinancial, american general, ect will hurt your score badly and will not go up at least right away even if you pay them.]]] You gotta be KIDDING ME! What gives with this? I need some procedural advice here....what should I do? Pay it, then disupute? Dispute, then pay it? Offer to pay the balance early (with some of the calculated interest) in return for a COMPLETE removal? HELP!
TOTAL REMOVAL is probably the only way...EVEN PAID AS AGREED BALANCE $0 WON'T HELP...so "THEY" say...
Pay in full and ask the loan company to have it REMOVED... Tell them you had no idea that it would hurt your F.I.C.O. score so much...
After I paid them off I send in disputes as not mine. Tu was the only one to remove them. Fico thinks that a finance loan means you are in financial trouble. What a load of horse crap. You can have 6 hard inquiries from shopping around and not be able to get a bank loan so you get a finance loan. That does not mean you have a bad credit report.
Re: Re: Finance Co. Loan drops scor What are my chances of getting the loan company to remove it when/if paid in full?
Re: Re: Finance Co. Loan drops scor Even a car loan like mine (thru Nissan - NMAC) count as a finance account. At least according to TU. 0.9% interest is not sub-prime, yet it is counted negatively anyways.
Re: Re: Finance Co. Loan drops scor I agree that it is unfair. All of these count as finance accounts and hurt your score: Student Loans (i.e. Sallie Mae) Car Dealer Financing (i.e. Toyota/Honda Finance) Home Furniture Financing (i.e. Ethan Allen) But as harmful as they are, a finance account is better than a late on a non-finance account. So if you needed the cash to avoid deliquency, and this was the only way to get it, then you made a good decision.
Re: Re: Finance Co. Loan drops scor Sorry if this is "generally known," marci, but car dealer financing is frowned upon? How about auto financing through a bank - how is this viewed? I haven't financed a care in a long time and find this interesting.
Re: Re: Re: Finance Co. Loan drops scor Only by FICO. Dealership financing is often through manufacturer *finance companies*, not banks. FICO loves bank installment loans, but they are rated as *bank* installment loans. So, if you finance through a bank for a car at 5.9% and the dealership offers you the same terms at 5.9%, go through your bank. But if the bank offers 5.9% and the dealership offers you 1.9% - go with the dealership. Forget about FICO at that point and save your money! Finance accounts hurt more than bank installment loans but they aren't the kiss of death to your score that they are sometimes made out to be and eventually they don't hurt at all.
