I recently applied for an increase in my credit limit on my discover card. I was declined, and one of the reasons was "Too many finance company accounts" I am wondering if I am misunderstanding what is classified as a finance company. I didn't think I had any finance company accounts. Any ideas as to what is considered a finance company?
RE: what is considered a finan In California where I live finance companies are technically called "personal property brokers" and they are subject to a different set of regulations than banks. They provide credit to people who would have trouble obtaining credit from banks. Examples of finance companies include Wells Fargo Acceptance and Beneficial Finance. Generally, the interest rates charged reflect the higher risk of the borrowers. Frequently, the loans are secured by collateral such as cars and furniture but this is not always the case. Sometimes they make signature loans but the limits for these tend to be low. If you were denied because of too many finance company accounts, this may mean too many accounts of any kind or it may mean that the creditor thinks financing with these companies is a negative which implies high credit risk. Just a guess.
RE: what is considered a finan that's what I thought the definition of a finance company was. But I have none like that. Would a dept. store account through GECAF (Monogram Credit Card Bank of Georgia) count as a finance company? I have one of those.
RE: what is considered a finan Monogram Bank issues many retail cards, e.g., JC Penney, Walmart. It is not a finance company.
