How bad does this hurt your credit?

[geojen]

My husband and I needed a new mattress bad--he has bad lumbar support, so we couldn't go all cheap either. We financed a sleep number bed on their 1 year 0% interest deal. We are of course going to pay it off way in advance, we just didn't have the money up front for it when our other mattress finally bit the dust. Then, afterwards, I read an article that said these types of deals really hurt your credit score. Does anyone have experience with this?

[Bookie]

Re: How bad does this hurt your credit?

These offers of 0% financing are serviced by the small loan industry. The product vendor doesn't extend the credit. Instead, the contract is discounted to a loan company.

Doing business with small loan companies doesn't look good on your credit history, or so I've read. Of course, the account might never be reported to a credit bureau either, in which case it would be irrelevant.

[Hypersion]

Re: How bad does this hurt your credit?

The size of the loan company has nothing to do with how much it hurt or helps your credit score.

As long as you pay back the loan as agreed it should actually help your credit score not hurt it.

[autoxer]

Re: How bad does this hurt your credit?

It might 'hurt' by never reporting, but as long as all of your payments are on time, you have nothing to worry about.

[Great to be Debt Free]

Re: How bad does this hurt your credit?

An aside. Dh and I got our sleepnumber bed last February. Dh falls asleep in an instant now. I have always had back problems and still occasionally wake up achy, but it's still much better than it was.

I think it was definitely worth the investment for us, so i hope you enjoy yours as well.

Chiropractic and a tens unit have been very helpful to deal with my back issues as well.

[cricket]

Re: How bad does this hurt your credit?

Pay it off as quick as you can that will help your credit.
Glad you are sleeping better.

cricket