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I don't have an open installment loan and only have one closed installment loan on my credit report (a mortgaged that was paid off several years ago).
I was probably being foolish, but I thought I might be able to bump my FICO score a few points by opening a shared secured loan. I opened an account with Alliant and applied for a $500 48-month term (which was an option on the online form). I was contacted by a represenative, who insisted it could only be a 12-month term. I eventually sent her a link (that Ch-7-Rebuilding provided in this thread) to an Alliant webpage that says 48 months is an option). She replied that she checked with the underwriter who said no.
I guess I was naive. I thought a secured loan for $500 was going to be an easy process. But four phone conversations and several emails later, I'm wondering why I ever started this. The loan is not all that important to me. So I just replied:
Hi [her name],
Thank you for all your help. I appreciate all of your efforts. But I’ve decided not to pursue a loan with Alliant.
The loan that I wanted (and that Alliant’s website says is available) is apparently not available. I appreciate the opinion you shared with me on Monday that a 12-month term (renewed at the end) would be just as good as a 48-month term. You may be right, but I think I would still prefer the longer term.
Thank you again for your help this week.
[my name]
It's probably just as well. I really did it more on a whim, because I don't have an immediate need to raise my score (and I don't know if this actually would have even raised it). But I would think this would be really frustrating if the loan was important to me, if I either needed the funds or was trying to qualify for a mortgage.
Anyway, just thought I'd share. I learned a lesson.
This member had the same problem:
http://ficoforums.myfico.com/t5/General-Credit-Topics/Alliant-Credit-Union-Loan-Help/m-p/4430669
Unless they have had a recent change in the products they offer it sounds like there may have been confusion between "Savings Secured Short" and "Savings Secured Term" loans. You were asking for the "savings secured short" and she was hearing "saving secured term" which is limited to 12 months. It could also be that they have been getting a lot of applications for the 48 or 60 month loans and decided it is not worth it to write these low dollar loans for longer than 12 months. Some other CUs such as Navy are like that and require a larger loan amount to be elligible for the longer terms. Perhaps Alliant is going that way now.
@manyquestions wrote:Unless they have had a recent change in the products they offer it sounds like there may have been confusion between "Savings Secured Short" and "Savings Secured Term" loans. You were asking for the "savings secured short" and she was hearing "saving secured term" which is limited to 12 months. It could also be that they have been getting a lot of applications for the 48 or 60 month loans and decided it is not worth it to write these low dollar loans for longer than 12 months. Some other CUs such as Navy are like that and require a larger loan amount to be elligible for the longer terms. Perhaps Alliant is going that way now.
I do think there was some kind of confusion somewhere. But I was very clear that I wanted the "savings secured short." I sent her a link to their personal loan product page, and I told her it was the loan in the second column of the table. But I think it's still possible she was confused.
It's possible they changed policy (and didn't update their website or their online application form). But I think it's more likely that she just completely messed it up. I kind of expect to read here at myFICO sometime soon about someone getting the exact loan I couldn't get. All the same, I think she might have (inadvertantly) done me a favor.
Kepe the typical weight of Credit Mix in mind when worrying over stuff like this:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
Apply for credit products that suit you. Don't apply just for scoring reasons.
@Stevielynx wrote:
If you Google "Alliant Credit Union", there is more than one. The one that most are referring is the one in Chicago. Make sure you're contacting the right one.
That's good advice. I was dealing with the one in Chicago.
@Anonymous wrote:
@Stevielynx wrote:
If you Google "Alliant Credit Union", there is more than one. The one that most are referring is the one in Chicago. Make sure you're contacting the right one.That's good advice. I was dealing with the one in Chicago.
I would chalk this up to experience and try getting the loan again in a month. You should just do the loan app online so they really won't have the opportunity to tell you that you can only get a 12 month loan.
savings secured long, $500 minimum for 49 months.