Impact of Owner Financing on credit worthiness

[Dinesh T.]

I understand that the more loans you have in your name, credit worthiness (read credit score) of an individual goes down. Any loans you take from banks is information which is available to all other banks. Is the same true if I take a loan from a seller? If this information truly private, then I would assume that the credit worthiness would not take a hit initially.

On the flip side, individuals would not report payments to credit agencies and hence the long term credit would not improve.

Thoughts?

-Dinesh.