Finance Companies

[JoyJoy]

Does having finance companies listed on your credit report lower your FICO score?

Is a person considered a bad risk for credit just because a finance company appears on their credit report even if the account is closed?

If you had an account with lets say HFC and you are paying them on a payment plan with 0% interest and want to take advantage of their 4.25% savings account, would you first pay off the payment plan before applying?

Would Citi/Citifinancial (endorsed by The Oprah Show) and Wells Fargo Financial be considered better companies than the others?

[Ima saver]

You should always pay off your debts first. I would think a finance company would lower your fico score!

[JoyJoy]

Originally Posted by Ima saver

You should always pay off your debts first. I would think a finance company would lower your fico score!

Thanks for responding to my post Ima Saver! You are so right about paying off my debts first! I wrote a check to HFC today for the balance. I have $4,900.00 worth of debt now and according to Quicken that will be gone before the year is over. I do want to get in on the HSBC offer, however!


The presence of finance companies on one's credit report does affect the FICO score and that is the reason for this thread. I didn't know this for sure but seeing it written under Negative Factors on my Experian report makes it real.

[Ima saver]

That is great Joy! I checked my fico score and they said it would be higher if I had a mortgage. I have owned all my homes free and clear since I was 32, but I guess that does not count on your score. My score is 816, so I am not too worried.

[JoyJoy]

Originally Posted by Ima saver

That is great Joy! I checked my fico score and they said it would be higher if I had a mortgage. I have owned all my homes free and clear since I was 32, but I guess that does not count on your score. My score is 816, so I am not too worried.

Thanks again for replying Ima Saver!! You are so blessed! At 31 I was diagnosed with Multiple Sclerosis but I did own my own home and had purchased it at 21 years of age. I had a lot of financial obstacles and now I am just about over that hurdle. Congratulations on the 816 score! Mine are not that good.....669, 707 and 731, but I am blessed for I am more than a FICO score.

[Ima saver]

You are certainly more than a fico score. Congratulations of buying your own home at such a young age. I did too. It is so hard for young couples to do that now. I am sorry about your ms, but you sound like your spirit is high and your will to get financially sound is right up there too!! Good luck!!

[JoyJoy]

Thanks Ima and you're a real trooper yourself too!

[Ima saver]

you sound like a very nice person. I am glad i found this site.

[PRICEPLUS]

Welcome to the site. I believe the following, "out of debt, out of danger"!

[Ima saver]

I have pretty low debt, but I also have the funds to pay everything off if needed. Since my husband builts homes with our money, I have to keep a bit of cash in the banks.