Does No Payment No Interest affect credit score?

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I took advantage of the No Payment No Interest for 6 months offer of the famous home improvement store which I also have a store credit card with them . But will this affect my credit score even though I pay on time all the time?
I own a Credit Card from this home improvement store and bought a washing machine using their promo of No Interest No Payment til 2009 for purchases of $ 300 and above. I am wondering if they run my credit when I did the purchase and how many points do they take from your fico score?

  1. Reply
    July 21, 2011 at 2:31 am

    You should seriously call. I took advantage of an offer like this and they reported they I was late on payment. Call and see if there is anything hidden.

  2. Reply
    Rob A
    July 21, 2011 at 2:44 am

    Maybe, Part of the credit scoring model is based on the percentage amount of available credit you have. For example, if that is the only line of credit that you have and the credit limit is $ 5,000 and you have $ 4,000 charged, you are using 80% of your credit. Anything over 25%-30% will negatively affect your credit. I’m sure the store ran your credit, which dinged your score, and another big part of your credit score is the average age of your accounts. A new line of credit can really lower your account age average if you only have a few open lines.

  3. Reply
    July 21, 2011 at 3:20 am

    Rob is partly right…..but I believe this effect will only be temporary.

    Long term, you establish a new line of credit. As long as you complete the payments on time you should not have any problems, and after a year it should improve your score.

    Pay it off after 6 months, and it’s a win/win. No interest payments, another credit line item….I highly recommend it.

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