Quicken won't recognize new car loan as a loan, but rather a credit card.

CelieMom

Same issue as DrDave49 in 2/2021, but it is now 11/22 and I'm having the same problem. I recently bought a new car with a loan from the Va. Credit Union. When I try to do an online loan set up, Q recognizes the account at my bank but only as a "credit card," with no other options, so it won't amortize my payments. What is strangest is that it still recognizes old, paid off loans as "loans" but won't let me set up a new account the same way. Any suggestions?

Frankx

Hi @CelieMom,

Unfortunately, I cannot explain why "Q recognizes the account at my bank but only as a "credit card" but I suspect it may more likely be caused by the credit union rather than Q.

That being said, I would also like to make a recommendation that you not setup this auto loan as a "connected account" but rather set it up as a manual loan account in Quicken.  The reasons for taking that approach include the fact that Quicken eliminates the account register for these loans. Which in turn, doesn't let you see the various transactions (including payment history), or to make any changes or adjustments to the account.  It is a little more work, because you'll need to split the transaction payments between principal and interest, but that data is already provided by the bank.

So the fact that Quicken wants to classify this as a credit card - may be a good thing after all!

Frankx

Frankx

Hi @CelieMom,

Unfortunately, I cannot explain why "Q recognizes the account at my bank but only as a "credit card" but I suspect it may more likely be caused by the credit union rather than Q.

That being said, I would also like to make a recommendation that you not setup this auto loan as a "connected account" but rather set it up as a manual loan account in Quicken.  The reasons for taking that approach include the fact that Quicken eliminates the account register for these loans. Which in turn, doesn't let you see the various transactions (including payment history), or to make any changes or adjustments to the account.  It is a little more work, because you'll need to split the transaction payments between principal and interest, but that data is already provided by the bank.

So the fact that Quicken wants to classify this as a credit card - may be a good thing after all!

Frankx

CelieMom

Thanks! I think you're right that it's a Credit Union problem, though my other accounts all work fine. I did try setting up the loan manually, but the first payment didn't apportion the Principal & Interest correctly, so I need to do that manually too. I take it you are recommending doing it that way, rather than setting up a credit card, since a credit card won't apportion P&I either. Thank you!

Frankx

Hi again @CelieMom,

That's absolutely correct - you will need to apportion the payment either way, so the potential benefits of a "connected loan" disappear when the bank treats it as a credit card.  BTW - you can set up, and then save, a "memorized transaction" in Quicken that will make entering the monthly payment transaction a little easier.

Frankx

CelieMom

Will do - I usually do that, but I assume I will have to manually enter the P&I, as it changes every month. Q does it automatically for my mortgage and used to for older loans, but maybe Q & the Credit Union will get things worked out in the future! Thanks again