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     | Tuesday, January 30, 2001 - 05:29 am  I have a 4.9 percent car loan from Ford Credit, which is basically five points better than my bank would give me. So I'm a smart shopper. Right? Well, I'm not so sure now. I pulled a free TransUnion report from worthknowing.com. According to worthknowing.com, my Ford loan is a "finance company" account that could lower my credit score. In fact, my credit score at worthknowing.com has dropped from 77 to 32. About the only things that changed in my file were the opening of the Ford loan and a CC account, and the closure and "paid in full" notations on my old car loan and a CC I closed when I got the new one. Many people on the Web have suggested worthknowing.com's scoring software can't be trusted, but that doesn't mean worthknowing's not right about treating a Ford loan as a finance company account. Is it true? Can a loan from Ford or GMAC or Chrysler Credit lower your credit score?
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| | Tuesday, January 30, 2001 - 10:10 am Yes, if they report as finance company accounts they usually lower FICO credit scores. You shouldn't have closed your credit card account either. I highly recommend you read Improving your Credit Scores.
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| | Tuesday, January 30, 2001 - 10:28 am Worthknowing.com has recently changed their scoring software. I emailed them about this b/c everyone I know has had their scores dropped dramtically, they replied that they have installed a new scoring model and have received alot of negative feedback. I know a few people who had scores in between 80-100 and they all dropped to a FIVE!!! I told worthknowing they had better get back to the drawing board with this system. But yes to your question finance companies do seem to lower one's scores.
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| | Tuesday, January 30, 2001 - 11:07 am Christine and Ann: Thanks for your input. I'd still choose a 4.9 rate over 9.9 despite a minor FICO hit, but the CC is another matter altogether because it affects the average age of my accounts. Guess I bought into the fluff about not having too much available credit when you go mortgage shopping. When I go in the spring, I didn't want them to think I could charge up a super bundle, so I shut down one of my accounts that had a high interest rate. They just sent me a letter offering to reopen it. Maybe I'll take them up on it and negotiate some better terms.
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| | Tuesday, January 30, 2001 - 11:38 am Don't reopen the credit card unless they report the OLD account. If they assign you a new account number and report as NEW account, your scores might go even lower. Aside from the annual fees (often waived when requested) there should not be any cost associated with a credit card. I.e. the rates and terms are irrelevant unless you use it. As far as Worthknowing's credit score, they should just remove it. It's a COMPLETE waste of time because NO lender uses it to approve loans.
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| | Tuesday, January 30, 2001 - 12:17 pm Christine: The offer was to reopen my old account with the old account number. There are no fees about which to concern myself. I agree with your assessment of worthknowing.com's credit score.
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| | Tuesday, January 30, 2001 - 01:03 pm Yes let's hope "WHEN" Equifax and the rest of them release those hush hush scores of ours, Qpsace, WN, and the rest of them go out of business. I personally will feel pure pleasure when Qspace goes down!!
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