The lien probably will be reported, but that has no effect on FICO scoring. I agree that this is a pretty good deal, but as jmbfl says, don't run up that debt again, while the installment loan is in effect. I think that the minor hit you will take for the new account, will be offset and then some by the increase you will see from your uti going down. Just be sure that the bank/CU is not trying to be over-officious in their actions (ie. telling you that you must close your cards in order to get the loan).