Are loans through Synchrony subject to random AA on credit cards?

[urbex]

I'm in the market for a new utility trailer for the truck that's going to set me back around $25K.  I don't know if trailer loans are considered personal or auto loans, so I put it here.

I can pay cash for it, but I also see that many of the dealers have a 12 month 0% promo on a 60 month term loan through Synchrony. 

I have zero intentions for another car loan or mortgage any time soon, have around 750-760 scores, and low INQs so I'm not concerned about CR hits.  Just looking at it from the standpoint of leaving that 20K sitting in an interest gaining account for another year. 

But I've also read about people with higher exposure with Sync credit cards getting random major CLDs and account closures.  At the moment I have around $35K CL across 4 Sync cards.  This loan would put me over the seemingly common 50K trigger point...

Curious if people have been seeing these AAs when Sync loans are brought in to the mix, or if loans and credit cards are handled separately?

[SouthJamaica]

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@urbex wrote:

I'm in the market for a new utility trailer for the truck that's going to set me back around $25K.  I don't know if trailer loans are considered personal or auto loans, so I put it here.

I can pay cash for it, but I also see that many of the dealers have a 12 month 0% promo on a 60 month term loan through Synchrony. 

I have zero intentions for another car loan or mortgage any time soon, have around 750-760 scores, and low INQs so I'm not concerned about CR hits.  Just looking at it from the standpoint of leaving that 20K sitting in an interest gaining account for another year. 

But I've also read about people with higher exposure with Sync credit cards getting random major CLDs and account closures.  At the moment I have around $35K CL across 4 Sync cards.  This loan would put me over the seemingly common 50K trigger point...

Curious if people have been seeing these AAs when Sync loans are brought in to the mix, or if loans and credit cards are handled separately?

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1. An installment loan that is current wouldn't be subject to the type of adverse action that Synchrony takes with credit cards.

2. Neither would it be grouped by Synchrony for underwriting purposes with the revolving accounts.

3. A loan of the type you're describing with Synchrony may wind up being classified as a "consumer finance account" and therefore cost you some FICO points.

4. If I were you I would forget about the 0% interest thing, and just get the lowest price you can get. Synchrony is a low class outfit. If I were you I would either pay cash or get a regular vehicle loan from a better bank or credit union.

[JoeRockhead]

As stated above they're handled separately. I'd also agree that you should go elsewhere for a personal loan if you decide to go that route for the trailer. 

[Zeiram]

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@JoeRockhead wrote:

As stated above they're handled separately. I'd also agree that you should go elsewhere for a personal loan if you decide to go that route for the trailer. 

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Most personal loans are not going to do 12 months 0% APR. If OP can seriously pay this thing now but just wants to string them along a bit, earn interest, and have an installment loan report on the credit, I don't know why not to do Synchrony. They do weird things with credit cards, but they can't balance chase you on an installment loan so who cares.

[NoMoreDebt]

Ill agree with the majority on this one. if i have a way to just buy it now im not going to complicate my life by opening a new loan much less one that would have stynchrony show up on my credit reports.  

[FicoMike0]

I'd sure look closely at the fine print. Are there origination fees? How about prepay penalty? Also, is this a 'timebomb' deal, where if you are one dollar short or one day late, the 0% is void and you owe 25% for the whole year? If so, make double sure you know the due dates and pay them early.

[urbex]

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@Zeiram wrote:

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They do weird things with credit cards, but they can't balance chase you on an installment loan so who cares.

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Not so much that I'm concerned about balance chasing the loan, rather that I'm concerned about balance chasing my cards, or waking up tomorrow and finding they closed a number of my credit accounts to equal the amount of the loan. 

I don't see it as a hassle..I get loan, I go home with trailer.  I set autopay to..well, autopay the monthly for the first 11 months, then the 12th payment is a balloon payment to cover what's left.  Meanwhile that $20-$25K is sitting in my account earning 5% for the year, which is not an insignificant amount. 

Whether it's worth it is all relative.  There was a time in my life that I would do just about anything to come out $20 ahead.  Today, I won't bother with even trying to sell things for less than $200, and sometimes that number goes as high as $500..those things just go straight to the trash or scrap bin...just not worth my time to deal with CL and Facebook flakes.  But saving $1200?  Yeah..that gets my attention, lol. 

[Zeiram]

I'd put it in the best CDs you can get now before the savings rates fall. You could probably find some that have 8, 9, or 11 months on them which would make it available again by the time the loan is due.