Amex,personal loan offer?

[Anonymous]

Please help....anyone sign up for that amex personal loan offer? I believe they said in notice it's SP also does personal loans effect AAOA the same ways CCs do?

[Anonymous]

I have one and it's a SP. I never got a HP. It reports as an installment not revolving. A person loan is not a line of credit.

[Anonymous]

Yes it does affect AAOA. Opening any credit account that report will affect AAOA.

[Anonymous]

Donny10,thks!!!

[Appleman]

While it will lower your AAoA's, it can improve your credit score if your credit card utilization exceeds 10%. FICO scoring treats a personal loan differently (better) than carrying the same debt on a revolving credit card. The reason I say 10% is the scoring models give you questionable benefit if you run below 9% (you get the benefit of not paying interest). Hopefully that makes sense.

Finally, if you do not have an installment loan this can help as well for scoring purposes.

[driftless]

I just replied to a similar thread, perhaps a moderator can merge them?  Does it lower your AAoA's exactly the same way that opening a new cc would?

[Anonymous]

Yes... exactly the same way.