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Fico Score Negative Factors Question?


Northern Lights
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My Experian report on My Fico scores is reporting in the section for Negative Factors as: "Relatively high number of consumer finance company accounts being reported"

Here are the top factors where you have the most opportunity to take action that will increase your FICO score over time (they are listed in priority of impact on your score):

You have a relatively high number of consumer finance company accounts being reported

I know I could remove at least 5 positive consumer finance company accounts from my report some being reported twice with same account number.

Question: Do I risk removing these accounts to limit the amount of finance companies reporting to help out my experian score or should i just leave it alone?

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Sub prime and loan shark outfits lower your score. You need to get rid of them. I used to have lots of them.

If it is an emergency, then I can understand. But if you want to build up credit, there are so many other places to go to that will not report as a finance company.

You need to stop going to those places unless it is an emergency. 30 percent, 88 percent or higher in interest does not help your financial situation. There are plenty of revolving credit places that will give you the big chorizo but at least it won't show up as a finance company...

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:lol:Another trick is to pay them off and show acct. closed by you and even though they are sub prime, it shows your ability to pay your debts thereby increasing your scores. The best CR should have a good mix of cards, definitely do not get a lot of store cards, and use a credit union for loans or open a LOC that does not report like a credit card. Regardless if it is subprime, don't remove the oldest tradeline that is positive. In my zest for credit repair I wanted Merrick bank off mine thinking ugh sub prime, what I did was got rid of a positive tl with no lates and paid in full and tanked my scores almost 20 pts., thankfully I recovered.
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  • 7 months later...

I've read a lot about this, too, and went to a Life After Bankruptcy seminar with lots of good info. Sub-prime just begets (sp?) more sub-prime. From what I've seen, you should avoid the obvious ones like payday loans, buy-here pay-here places, rent-to-owns, but also finance companies like furniture and jewelry stores. Also the biggies like Beneficial, Wells Fargo Financial, etc.

Your best bet is to build or rebuild with mainstream lenders: a small local bank in our area is actually rolling out a "Credit Builder Program" that offers three positive tradelines: auto loan, CD secured loan and secured credit card. They all report from the bank, so it's all mainstream lending on your CR.

Captive lenders like Ford Motor Credit and other auto lenders are considered mainstream, so these are good, too. Ford has a "Red Carpet Lease" that works well for rebuilding after BK.

(It's so nice to be able to give a little info instead of beg for it!) :lol:

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The best CR should have a good mix of cards, definitely do not get a lot of store cards, and use a credit union for loans or open a LOC that does not report like a credit card

Do Credit Unions look bad on your report?

What about lenders such as Crap 1, which are mostly subprime but have prime products as well?

What about small local/regional banks?

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Credit unions look great on your credit report... And best of all, they will take subprime customers and treat them like prime customers with interest rates and credit cards...

Go there first and to as many as possible and even to the ones that are out of state. Try out this web site:

www.creditunionaccess.com

It has all the local credit unions in your area and in your state...

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