Consumer Finance Tradelines

One the things thats hurting my credit report which I obtained from Myfico.com is a consumer finance account.

Its states that a consumer finance companies typically grant loans to people with poor credit histories. 

The only consumer finance company I have on my report is Ford Credit, an automobile loan. 

Why would this affect my FICO scroes?

Georgia

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Hi Georgia,

You’ve answered your own question within the question: “consumer finance companies typically grant loans to people with poor credit histories”.  Don’t worry too much about it, though – it’s not a major factor.  It’s contained in a portion of FICO called “Types of Credit” that accounts for the lowest percentage of your total score.

If given a choice, however, avoid any other loans that will result in a finance company notation on the report.  Furniture store loans and any ‘buy now pay later’ types are at the top of the ‘no-no’ list.

Thanks for the questions and hope this helps.

Paul