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Will a 0% Loan still show on my credit report?

ch3cker
Contributor

Will a 0% Loan still show on my credit report?

Will a 0% loan for 36 months still show as a credit buliding line of credit on my credit report? It will be taken through either Synchrony or FreedomRoad.

 

Also, if I want to credit boost my spouse will having them as a cosigner be benficial for them? It will show for them too?


EQ 816, TU 821, EX 826
Message 1 of 16
15 REPLIES 15
Anonymous
Not applicable

Re: Will a 0% Loan still show on my credit report?

A loan is a loan is a loan.  The interest rate on it isn't relevant to Fico scoring.  So yes, your 0% loan will show up on your CR.  Whether you consider it "credit building" or not is arguable depending on the rest of your file.  If the loan is co-signed, it show up on the CR of person that co-signs it as well.

Message 2 of 16
ch3cker
Contributor

Re: Will a 0% Loan still show on my credit report?

I have 8 total accounts (7 CC and 1 mortgage). No hard inquires. Utilization under 10%. No derogatory marks. 10 years average age of accounts. Oldest is 30 years and youngest is 1 year.

I was thinking I’d benefit from another account. This would be a motorcycle loan (auto I think).

I don’t really have a set score goal. I’m just trying to see how high I can get my score safely without much effort.

EQ 816, TU 821, EX 826
Message 3 of 16
Anonymous
Not applicable

Re: Will a 0% Loan still show on my credit report?

8 total accounts (open and closed combined) or just 8 open accounts?

 

A move from 8 accounts to 9 accounts is a non-factor when it comes to Fico scoring.  You've already got a non-thin file, so that box is checked off.  Do you have any other open installment loans currently?  If so, what is the current balance / original balance(s)?

Message 4 of 16
ch3cker
Contributor

Re: Will a 0% Loan still show on my credit report?

My only installment is the mortgage. Original balance 100k and current balance 84k.

5 open accounts (4 CC, 1 mortgage)
3 closed (2 CC, 1 auto)

Also, I misquoted my CC accounts in my original post. My bad.

EQ 816, TU 821, EX 826
Message 5 of 16
Anonymous
Not applicable

Re: Will a 0% Loan still show on my credit report?

If you have an open mortgage in place, adding another installment loan will add nothing of value (no points at all) to your Fico scores and could only drop your score(s) due to the inquiry and age of accounts reductions from a new account.

 

If you youngest account is > 12 months old, which it sounds like is the case from your second post, opening a new account will reset your AoYA to 0 months and typically drop your Fico scores 15-25 points on a profile such as yours.

Message 6 of 16
ch3cker
Contributor

Re: Will a 0% Loan still show on my credit report?

Would it be of any value to my credit profile down the road. In say 3-4 years. I have no other credit plans until then.

EQ 816, TU 821, EX 826
Message 7 of 16
SouthJamaica
Super Contributor

Re: Will a 0% Loan still show on my credit report?


@ch3cker wrote:

Will a 0% loan for 36 months still show as a credit buliding line of credit on my credit report? It will be taken through either Synchrony or FreedomRoad.

 

Also, if I want to credit boost my spouse will having them as a cosigner be benficial for them? It will show for them too?


Yes it shows up just like any other installment loan.

 

I would not recommend having your spouse cosign. Having a new loan creates more negatives than positives for most people.  Without knowing her whole profile I can't exactly be sure as to how it will affect her scores... but don't do it.

 

 


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 8 of 16
SouthJamaica
Super Contributor

Re: Will a 0% Loan still show on my credit report?


@ch3cker wrote:
I have 8 total accounts (7 CC and 1 mortgage). No hard inquires. Utilization under 10%. No derogatory marks. 10 years average age of accounts. Oldest is 30 years and youngest is 1 year.

I was thinking I’d benefit from another account. This would be a motorcycle loan (auto I think).

I don’t really have a set score goal. I’m just trying to see how high I can get my score safely without much effort.

This loan will accomplish absolutely nothing for you, except REDUCE your score. You already have a mortgage. You gain nothing from another installment loan.

 

But you will lose points from it.


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 9 of 16
SouthJamaica
Super Contributor

Re: Will a 0% Loan still show on my credit report?


@ch3cker wrote:
Would it be of any value to my credit profile down the road. In say 3-4 years. I have no other credit plans until then.

No it is of no value to you whatsoever, unless you enjoy losing points.


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 10 of 16
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