Too many consumer finance company accounts
Image: Tadson Bussey
What it means: Consumer finance companies make relatively small personal loans, usually limited to several thousand dollars, and quite often at interest rates higher than those on most credit cards. Consumers who rely heavily on consumer finance company accounts tend to be riskier to lenders than consumers who do not have any.
What you can do about it: Paying off these types of accounts will not improve your credit immediately but it’s still a good idea to pay them off as soon as you can since the interest rates are probably high. Next time you need to borrow, try first to get a standard personal loan through a social lending website, for example, or your bank or credit union.
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