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Overdraft Protection Loan Approval - Question...?

Established Member

Overdraft Protection Loan Approval - Question...?

I got approved for an Overdraft Protection Loan from my CU that I’m working to build a relationship with. LAST app before a very long garden.

Before I accept I just wanted to double check - How does this report? Is it anything that could look negative on my report?

At the beginning of my journey I took out a couple installment loans that Experian later told me look negative because they are from consumer finance companies or something to that effect. That’s not the right verbiage but basically some types of loans and companies just don’t look good. Kind of like payday loans I guess?

I just want to be sure this isn’t one of those loans before I accept.

Thank you!
Message 1 of 5
Senior Contributor

Re: Overdraft Protection Loan Approval - Question...?

It's not a CFA (consumer finance account) -- those tend to be product financing lines -- like from a furniture store, financing a new A/C through the manufacturer, or - as you mentioned - some payday loan companies. 


Your overdraft protection from your CU may be viewed as a revolving credit account (like a CLOC) or possibly categorized as "other loans" on your credit report; but it shouldn't be flagged as CFA.   

Personal Aphorism:"Forget What You Feel, Remember What You Deserve"
Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 04/2022: EX 796 ✦ EQ 793 ✦ TU 790
Current FICO 9s | 04/2022: EX 790 ✦ EQ 788 ✦ TU 782
2022 Goal Score | 800s

My AAoA:
4.6 years not incl. AU / 4.9 years incl. AU
My AoOA: 9.2 years not incl. AU / 11.2 years incl. AU
Inquiries: EX 0/12 ✦ EQ 0/12 ✦ TU 0/12
Report Status: Clean
Garden Status:  

Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 2 of 5
Mega Contributor

Re: Overdraft Protection Loan Approval - Question...?

Congratulations on your approval!
Message 3 of 5
Credit Mentor

Re: Overdraft Protection Loan Approval - Question...?

Checking Line of Credit (CLOC) should always report as a revolving line of credit. As for whether it will hurt you, no more than opening a new credit card account due to a new account and lowering of average credit age.
Message 4 of 5
Established Member

Re: Overdraft Protection Loan Approval - Question...?

Thanks guys!

Message 5 of 5
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