The fastest way to tank your credit and your sanity? Opening too many consumer finance company accounts before realizing what you’ve done. It starts innocently—maybe a furniture store offers you 0% for 12 months or a lender swears they’re “just like a credit card”—and before long, you’re neck-deep in 18 types of weird revolving credit you don’t fully understand. Sound familiar?
Why Too Many Consumer Finance Company Accounts Can Make Life Miserable
Alright, here’s the big surprise: Even if you’re paying on time, having a bunch of these accounts can still drag you down. No late payments, no collections… and yet somehow your credit score reads like a cry for help.
Why? Because major credit scoring models (hi, FICO and VantageScore) don’t love seeing your wallet stacked with consumer finance company accounts. These are considered “low-tier” credit because, statistically, people who use them are more likely to default in the future—even if you’re not that guy. The algorithm isn’t calling you irresponsible; it’s calling you statistically risky. Which, I’ll admit, stings a little. But it’s not personal—it’s math.
The kicker? Having multiple consumer finance accounts can signal that traditional lenders (like big banks or major credit card issuers) aren’t willing to offer you credit. So this “helpful” financing the furniture store offered you? It may quietly mess with your ability to get approved for a mortgage later.
Wait, What Counts As A Consumer Finance Company Account?
This is where it gets sneaky. Most people think these are just payday loans or title loans (which, yes, please avoid those like a raccoon in your attic). But “consumer finance company accounts” include all kinds of accounts from non-bank lenders like:
- Furniture or appliance store financing
- Store-branded personal loans (like those offered during checkout)
- Loans through platforms like Affirm, Genesis, or Synchrony
- Retailer installment loans for electronics or mattresses
- Subprime auto lenders that aren’t banks or credit unions
In the fine print, you’ll sometimes see names like “World Financial,” “OneMain,” “LendingPoint,” or “The Money Store.” If it sounds like it belongs in a strip mall next to a vape shop, it’s probably a consumer finance company. No offense to vape shops.
But If I’m Paying On Time, Why Does It Matter?
This is the part that drives people nuts: You’re doing the “responsible” thing, making payments, avoiding collections—and your credit still won’t budge. That’s because the type and quality of credit matters, not just whether you’re paying on time.
Your credit score looks at:
- How many accounts you have
- What kinds of accounts they are
- Your credit utilization
- Your average account age
So if you’re stacked with six high-interest installment loans from store chains and only one or two general-use credit cards, the score says, “Something’s off here.” It’s like showing up to a job interview wearing a tuxedo t-shirt. Technically correct, but it makes people nervous.
The Emotional Toll Of Too Much “Easy” Credit
Here’s what rarely gets talked about: the panic cycle these accounts create. People end up juggling five or six monthly payments with weird due dates and promotional APRs that could explode into 29.99% interest if you’re a day late. It’s not just financially risky—it’s mentally exhausting.
One woman was recently, juggling seven accounts from store financing companies. She wasn’t even behind—yet. But she was constantly anxious, checking her due dates like she was defusing a bomb every week. Her bank thought she looked overextended. She’d been turned down for a lease. She couldn’t figure out why.
When we broke it down, we saw the issue: She didn’t have too much debt. She had too many types of low-quality debt. That alone spooked lenders more than her balances.
How To Untangle The Mess Without Wrecking Your Score Even More
Step 1: Pull Your Reports (Yes, All Three)
Grab your credit reports from AnnualCreditReport.com—and yes, do all three: Experian, Equifax, and TransUnion. You want to see how many of these consumer finance accounts are showing up. Not sure how to read them? Credit Karma’s interface can help you identify the lender type, but remember—they make money by selling recommendations, so stay skeptical.
Step 2: Map Out What You Owe
Instead of traditional budgeting tips (which usually end with rage-throwing a spreadsheet out the window), try this:
- Track every dollar you spend for 30 days—no judgment, just write it down
- Sort those payments by category: need, want, due
- Compare that to your income and ask: what will actually work next month?
This gives you a plan based on how you live—not how some software tells you to live.
Step 3: Stop Adding New Accounts
Look, I know that shiny “0% for 6 months!” offer is tempting when the dryer dies. But financing has a ripple effect. Ask yourself: will this add more stress long-term? Can I float it using a responsible credit card I already have? Or better yet—can I wait, repair, or hit up OfferUp like a scavenger hunt?
Step 4: Consolidate Or Eliminate… Strategically
Debt consolidation can help. But it’s not automatic magic. If you don’t change habits, all it really does is clear the runway for more bad decisions with a fresh balance.
Personal loans or balance transfer cards are helpful only if you qualify for good terms and can stay disciplined. Otherwise, consider one of these options:
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
- Debt settlement: You may pay less than you owe, but there may be tax implications. (Compare failure rates)
- Bankruptcy: Don’t freak out. It’s not the end of the world—it could actually set you up for success. (Here’s the data)
- Talk to a real expert: Somebody like Damon Day, who isn’t trying to sell you snake oil disguised as help
If you’re considering working with a debt relief company, read this first: The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
A Must-Share Moment
“Your FICO score isn’t judging your morality—it’s judging your math patterns.” Weird, right? We spend our lives wrapped in shame around debt, like it somehow reflects who we are. But it’s just math. That’s it. The story you tell yourself about your debt? That’s the part we can change.
FAQ
Does Having Too Many Consumer Finance Accounts Hurt My Credit?
Yes. Even with on-time payments, they can lower your score by reducing your credit quality mix and signaling risk to traditional lenders. Less is more here.
Can I Close Some Of These Accounts To Improve My Score?
Not always. Closing active installment accounts can hurt more than help by increasing your utilization rate or shortening your credit history. Prioritize paying down and letting them age out.
How Many Consumer Finance Accounts Is Too Many?
There’s no fixed number, but if you have more than two or three, that’s a potential red flag—especially if they’re your oldest or most active accounts. Focus on consolidating or replacing them with higher-quality credit when possible.
One Last Thought (Before You Go Panic-Google “Secret Credit Fixes”)
Look, you’re not broken. You’re not dumb. You’ve been surviving—and some of these accounts probably got you through a hard phase. But if you’re ready to do more than survive, it’s time to shift the plan.
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