Overdraft Protection Loan Approval - Question...?

[PerArduaAdAstra]

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!

[thornback]

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.   

[AllZero]

Congratulations on your approval!

[K-in-Boston]

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.

[PerArduaAdAstra]

Thanks guys!