@jasonkm1 wrote:I was thinking about applying for what my bank calls a "preferred creditline"; basically overdraft protection for my checking account which they say you can also use for a loan at 18%. Does anyone know if this counts as a new account? Yes. More specifically will it count toward my average age of accounts? Yes. Or will it even show up on my credit report? Yes. I've never heard of peoples overdraft protection showing up on a credit report but was wondering since my bank seems to encourage customers to use as a short term loan.
Reporting differs by the financial institution you have the LOC with. For example, NFCU reports their LOC just like a cc account, therefore, factoring into overall utilization. OTOH, a financial institution may report as a loan. Either way, it is a new account and will report as such.
@Anonymous wrote:
Every one I've ever seen shows up as a revolving account. i had 1000 dollars on my account but i never wrote a check that would have activated it...i let it report zero every month just like a credit card. it may hurt your AAoA short term but say in 6 months it'll help. mine did anyway.
I, too, had a $1k loan with my local CU a few years back and initially it reported as an installment but over time it starting reporting as a line of credit.