Don’t Borrow From Finance Companies
Not all lending companies are created equal, especially in the eyes of Fair Isaac scores!
In general loans from banks and credit unions are looked at more favorably by the credit bureaus then those from general finance companies. This is because general finance companies tend to be sub prime lenders. Anyone who is doing business with them tends to pay higher interest rates. The reason they have to settle for those high interest rates is because they are in trouble financially.
Here is a list of general finance companies that you should avoid dealing with lest your association with them lower your credit score –
• American General Finance
• Beneficial
• CitiFinancial
• Heights Finance Corporation
• Household Finance
• Lendmark Financial Services
• World Acceptance Corporation
Avoid these companies and borrow from more mainstream vendors who offer low interest rates. Getting the lowest interest you can on a loan or credit card reflects very well on your credit card.