Auto loan vs personal loan-effect on FICO scores

[cobbson]

I am considering buying a used car for my grandson as a gift. The loan I want is $5,000 for 3 years and will be from the bank I do business with, USBank. Ignoring all other factors such as interest, etc., would there be any difference so far as reporting for the auto vs the personal loan to the CRA's since both are installment loans and both should be reported and any difference in the effect on my FICO score.

Also, do future creditors frown upon personal loans in their credit decisions?

Thanks in advance

[CreditDunce]

I can give you my guess.  But it is just a guess.

The auto loans and personal loans will have the same effect for your base credit score.  However, the auto enhanced credit scores will be helped more by an autoloan than by a personal loan.  I don't have a guess for how it would affect the credit score auto insurance companies use.  

In general, the more types of loan you have on your CR, the better.   Personal loans with good payment history is a positive in future loans.   Note, any active loan will be considered in any DTI calculations.  If your debt is to high based on income it would affect the size of loans you would qualify for. 

If you are absolutely sure you will make all of the payments on time, you could also talk with him if he would like to be added to the loan.  It would be a good way to start his credit life.  Teaching him about credit would also be a nice gift.