0% Finance on Bicycles - does it affect your credit score?

phoenixhdm

The major cycle companies such as Evans and Cyclesurgery have been offering 0% Finance for a while now.

If I used this method to buy a bike, would it negatively affect my credit score?

I rang V12 Finance who are the credit lenders for this scheme (for Cyclesurgery) and they said it wouldn't affect my score. But I can't believe that is the case as surely any request for extra credit would have negative impacts on one's credit rating.

Anyone who knows about this, your thoughts would be much appreciated!

molerat

Any credit that is reported to the credit reference agencies is likely to have some effect on your ability to get further credit, it can also have a positive effect if the payments are kept up to date. How expensive a bike are we talking about here ?

Cycrow

it can have some effect, afterall, it is a loan so it will show on your credit file.

whatever effect it'll have will depend on the rest of the file.
and how much this will effect on future credit will depend on the type of credit as well as the lender


in the short term it will add a new credit search on your file as well as a new credit account (too many can look bad)
After 6 months or so, it'll no longer be a new account and would look good (assuming its paid on time) as you will have additional lending history.