- Report: #1237430
Complaint Review: RAC program through Ashleys Furniture - Nationwide
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RAC program through Ashleys Furniture
Nationwide, USA
Phone:
479-616-1961
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RAC program through Ashleys Furniture RAC ruined my credit! Springdale Nationwide
My husband and I moved our family to Springdale in September of 2014. We were starting from nothing so we went to Ashley's Furniture to get our house set up. We went into the store with a 630 credit score. We were not approved for the Ashley's store credit line. They then began telling us about the RAC program which has higher interest rates and monthly payments but will build our credit so when we are done with it we can get a credit line through Ashley's. After agreeing to do the RAC program, we chose 2 bedroom sets totaling 2700.00. The payments were an outrageous 275.00 a month including insurances and such. We then waited 2 weeks for the furniture to arrive. When it did, and after setting it all up, we realize that instead of the really nice and sturdy set up we had seen in store we now had these unbelievably cheap and raggedy bedroom suits! We decided to make the payments anyway just to help our credit. After 8 months of making payments we discussed with the people at the RAC program about early payoff so we can get out from under these expensive payments. They told us that all it takes is 3 months of payments to raise our credit score and since we never missed or made a late payment we were good to go. So I payed off the furniture in full and waited for it to report to my credit bureaus. A month later it cleared my credit...and we were appauled. My beginning score that I had been working so hard to raise and had gotten to a 630..was now a whopping 520!!! I was outraged!!! Thanks to their lies about boosting credit I am now in the red on my credit scores and have p.o.s furniture.
1 Updates & Rebuttals
Robert
Irvine,California,
USA
The details....
#2Consumer Comment
Tue, June 23, 2015
Sorry but you are leaving out a lot of details that are very important in this, as it is extreamly unlikely that you making on-time payments for 8 months was the sole(or even a partial reason) of your credit score drop.
First off, you said you got your score up to 630, which is the same score you went to Ashley with. You then stated that 9 months later(8 months of payments and 1 extra month to wait for it to post) your score went down to 520. Okay, so what was your score in the months between? You were monitoring it then..right?
Did you use the same scoring model each time and the same credit report each time? As there are literally dozens of different credit scoring models and each one will give you a different credit score. You could have a 520 with one, a 630 with another, and even a 730 with another one. So you can NOT compare the score from one company and think it is equivalent with another score. Even when it comes down to the most widely used score, FICO, there is even several types such as FICO 2 or FICO 8. Each even though they are both a "FICO" score the scores will be totally different. Then because your score is based on your report and each Credit Reporting Agency may have different information if one of your scores was from Experian, if your other one was not you again can not compare them and treat them as equivalent.
Next, is what else changed in this 9 months. It is very unlikely that your credit report stayed the same with the exception of this account.
Did your balances on all of your other credit cards increase?
Are there other lines of credit that are on there now that were not there 9 months ago?
Do you have any new late payments?
Do you have any Collection accounts show up that were not there before?
Do you have any credit inquiries that were not there?
Because each and every one of those is also a factor in a credit score and can be considered a negative. Also, on that if you have any collection accounts, it won't matter what you do on the positive side, the negative of the collection will have a much bigger effect.
The "wildcard" in your score could be a factor of how "thin" your credit file is. The shorter the time you have had any type of credit, and the less number of items you have on your report the more prone your credit score is to big swings. So if you have had credit for less than a couple of years and only have a couple of items on your report, the things on your report will have more of a weight and yes can cause bigger "swings" in your score than say if you had multiple items and a longer history.
All of those questions can be answered by looking at your credit report. The answer to the above questions will be more telling as to why your credit score dropped than the positive payments you say you have with this credit item.
