Never list a finance company where you have had a loan as a credit reference. Reason: Computers that most large lenders use to score applications will subtract points if a finance company appears on your credit history. Caution: Any loan that is still out- standing when you fill out a credit application must be listed. False or incomplete applications are the most common reason for denying discharge of a debt in bankruptcy.
In other words, there is such thing as lower quality loans that you really
don’t want to be reflected on your credit report. There are a few situations
were a loan officer may advise getting a current low quality loan placed on
your credit report for say just an additional trade line for a FHA loan.
Your credit scores typically are better served by your higher quality accounts
such as credit cards, or mortgages, but one must still be extremely careful
about how they handle any credit cards. If you have a balance on your credit
cards above forty percent of what your high balance is, this can drastically
lower your credit scores.
Always seek counseling from a true professional prior to making any decisions that can potentially affect your credit.
Two people who live together, but who are not married, have the power to insist that their incomes be aggregated to determine their credit-worthiness for a joint-mortgage application. Reason: The Equal Credit Opportunity Act bars discrimination on the basis of marital status.