Did you know that if you are using the “Same As Cash” options available through department stores, like Best Buy, Macy’s or Rooms To Go you might not be helping your credit scores? The folks we help found that their credit scores (especially FICO) took a dive when they utilized these types of credit.
Why? Well, I’m talking about the type of account where you apply at the Piano Store (for instance), however it’s really Wells Fargo Financial that’s loaning the money. If you imagined that you could have “type A” credit sources and “type B” and finally, “type C” – the Financial Companies will likely always have the worst classification (and if you don’t pay it by the due date – you have a significantly higher interest rate!)!
So our advice is to use this type of financing sparingly!
How do you know if that’s what kind of credit you have? Look at your Pottery Barn Card – you aren’t really making your PAYMENTS to Pottery Barn, there’s a Bank backing that credit!
If you have questions about purchasing a home in NC or Virginia, and what kind of FICO Credit Scores you need for a mortgage loan… please call Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-649-5058.