It'll sort of show up like a car, more or less. Different scoring models might treat it differently than a car loan.
The impact that adding such a loan to your report will have, depends on other factors. What's your current utilization % getting reported every month? If your Util% is already low, then this installment loan debt consolidation probably won't affect your score much, it might actually drop it some (younger average age of accounts & age of newest account). But if you utilization is high, like over 20-30%, then your score might go up. But of course, nothing is certain.
Sounds like a good overall financial move though, unless you're planning on getting a mortgage in the next few months with scores that aren't well into the top tier already. A few points can matter a lot with a mortgage, but if a new mortgage isn't in your plans then I wouldn't stress about the +/- 10 points this loan might change, sounds like the money you'll save on interest makes it well worth it.
Total Loan Balance: $43k / $65k
Total SL: $78k
@tussking wrote:I have three cards with 0% APR but I am tired of sending them $1k each.
I can get an installment loan at 2.25%.
I do have the $ available to pay them off but would rather take my time @ 2.25.
I have one installment loan (Acura Lease) now this will report as a second. I guess it will show just like another car?
Thanks in advance.
If I were you I would, in order of preference,
(a) pay them off, or
(b) just let them ride.
I wouldn't take out a new loan for no good reason, which
IMHO is what you would be doing, thus invoking (a) a hard
pull (b) a lower average age of accounts (c) a reset of
age of youngest account and (d) adding another to my
overall accounts.
