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Navy Federal Share Secured Loan

Re: Navy Federal Share Secured Loan


@wrote:

Most of the banks and CUs we have researched do not permit the borrower to pay off most of the entire balance at month 1 and keep it open for the full length of the loan.  


Hi that is correct - It is difficult to find one with this requirement. 

 

However, in case this was not that important for me (just wanted an installment loan to report for like 12 months for a boost) - is there any cu/ bank you guys would recommend? But would prefer one without a hp. I wouldn't mind taking a $1000 loan and paying ~ $40 interest for the life I kept it. 

 

I found the Penfed ssl at 2% (>500$ loan) to be good option but that has a hp for membership. Any options better than this for my requirements?

Message 11 of 19
Community Leader
Super Contributor

Re: Navy Federal Share Secured Loan


wrote:

wrote:

Most of the banks and CUs we have researched do not permit the borrower to pay off most of the entire balance at month 1 and keep it open for the full length of the loan.  


Hi that is correct - It is difficult to find one with this requirement. 

 

However, in case this was not that important for me (just wanted an installment loan to report for like 12 months for a boost) - is there any cu/ bank you guys would recommend? But would prefer one without a hp. I wouldn't mind taking a $1000 loan and paying ~ $40 interest for the life I kept it. 

 

I found the Penfed ssl at 2% (>500$ loan) to be good option but that has a hp for membership. Any options better than this for my requirements?


 

The boost will end after you pay it off.  You have no open loans of any kind right now, correct?  Including installment accounts like a car lease?

 

Do you anticipate getting a "real" loan for something you really need -- like a car, for example?  If so, when would that be?

Message 12 of 19

Re: Navy Federal Share Secured Loan


@wrote:

The boost will end after you pay it off.  You have no open loans of any kind right now, correct?  Including installment accounts like a car lease?

 

Do you anticipate getting a "real" loan for something you really need -- like a car, for example?  If so, when would that be?


OK understood. Correct no open loans of any kind right now, no installment loans like a car lease. No do not anticipate getting a "real" loan for anything in the future. Only possibility could be a mortgage in around 12/15 months.

 

Mainly want the boost and thicker file from the installment loan to get more credit cards in 6 to 12 months.

Message 13 of 19
Community Leader
Super Contributor

Re: Navy Federal Share Secured Loan

Your top priority should be developing a plan.  The plan should include goals and steps to achieve the goals, with all the pieces working together.

 

You mention a desire to (possibly) buy a house in 12 months but also a desire to open multiple credit cards shortly before that.  That's an example of two things working against each other, not together.

 

People here can help you put together a plan, but they'd need to know things like:

 

How many credit cards do you have now?

 

Is your credit card utilization in the 1-9% right now?

 

What are your three FICO 8 scores now?

 

When did you open your oldest account?  Is that account still open?

 

Message 14 of 19

Re: Navy Federal Share Secured Loan

Excellent -thanks for your thoughts.

 

My main issue is my AAoA and that for my credit profile is mainly from AU. Cards as follows: 

1. Chase Amazon - Util: 0%, CL:5K opened 06/2003; AU

2. Citi Prestige - Util: (<1%); CL: 28K; 02/2016; AU

3. Amex SPG- Util: 3%;CL:28K; 11/2017; AU

4.Discover IT Secured; Util: 0%; SL: 800; 02/2018; primary

5. Capital One QS: Util: 1%; SL= 10,000; 02/18; primary

INQ last 24 months: (EX: 2; EQ: 2; TU:1). Discover was with SP since it was a pre-approval

FICO 8 scores (as of 01/31/2018): EX: 756, EQ: 760; TU: 762

AAoA =<1month

 

Based on what I have read on myfico, a ssl can really help me in my situation, to thicken my file and keep my AAoA lower when I apply for new accounts in 6 to 12 months. Should I get a ssl? And if so, from PenFed or is there anyone else you suggest? I could keep an ssl for 24 months if need be though ideally I would like to pay total interest <$80.

 

My main aims are: (1) Get new credit cards though I can easily app for them after the mortgage; and (2) Get a mortgage as co-applicant with my wife (Her scores are great so she can get mortgage as sole owner too if need be: Fico 8 EX: 790; EQ: 788; AoOA= 17 years; AAoA = ~ 7 years; newest account: that SPG Amex; INQ (EX:1, EQ:1; TU:0)) 

 

If we get a mortgage as co-applicants, is the applicable score just her middle score (as the higher scored applicant) or an average of my and her middle scores?

Message 15 of 19
Community Leader
Super Contributor

Re: Navy Federal Share Secured Loan

The mortgage officer will look at your middle mortgage score (call it X) and your wife's middle score (call it Y).  Then he will take the lower of X and Y.

 

I would allow the impending mortgage to drive all your decisions.  You have plenty of credit cards now, so do not apply for any until after you own your new home.  If your wife has only one or two cards, or none in her name, then there might be a case for her to apply for a card in the next few months.

 

Executing the SSL technique can't hurt at all, given your time frame.  A lot of people think that it is a good idea to have shown that you can handle an easy loan before you apply for a major loan (car or home).

 

Trouble is that we don't have clear options for lenders.  Navy is a a good choice and so would an Alliant unsecured loan.  Remember that all inquiries lose all score impact after a year.

Message 16 of 19

Re: Navy Federal Share Secured Loan


@wrote:

I would allow the impending mortgage to drive all your decisions.  You have plenty of credit cards now, so do not apply for any until after you own your new home.  If your wife has only one or two cards, or none in her name, then there might be a case for her to apply for a card in the next few months.


Thanks. That's all great information here. The cards I am an AU on, those are my wife's cards. That is she has 3/5 cards (in my original list) - Chase, Citi Prestige and Amex SPG and I am AU on all 3. And 2/5 cards are in my name - Discover IT Secured and Capital One QS and she is AU on none.

 

wrote:

Executing the SSL technique can't hurt at all, given your time frame.  A lot of people think that it is a good idea to have shown that you can handle an easy loan before you apply for a major loan (car or home).

 

Trouble is that we don't have clear options for lenders.  Navy is a a good choice and so would an Alliant unsecured loan.  Remember that all inquiries lose all score impact after a year.

 

Thanks. I think the reason you haven't found that clear option is for the requirement "after making a bulk payment to 8.9% util, the payment date still remains (60-8)= 52 months in future, rather than bringing forward the payment due date. 

For some one like me this is not an extemely imp requirement (I only want a score boost and thicker file for when I go apply the mortgage in 12 months) and a $1000 ssl from PenFed @2% for 60 months term works- that I make min payment for 10 months, then pay down to 8.9% util and then pay min payments for another 5 months works. Cause by the time the loan comes as "paid" (around month 15) I would have gotten mortgage by then. 

Is there any other option better than PenFed for me? Given what my requirement is, plus I don;t want to pay more than $80 of interest, and $0 loan origination and other fees.

I can't join NFCU and I don't know if I would get approved for the Alliant unsecured given my AAoA <1 month. 

What do you think is my best ssl option?

Message 17 of 19
Highlighted

Re: Navy Federal Share Secured Loan

The other reason I ask for better option than PenFed (which required hp for membership) is that there is a small chance we might bring forward our home buying & might be looking for mortgage in ~7/8 month rather than the 12/15 months first mentioned.

Message 18 of 19
Community Leader
Super Contributor

Re: Navy Federal Share Secured Loan


@bondsandloanwrote:

The other reason I ask for better option than PenFed (which required hp for membership) is that there is a small chance we might bring forward our home buying & might be looking for mortgage in ~7/8 month rather than the 12/15 months first mentioned.


 

I suggest you research this on your own.  Your situation is not terribly uncommon.  Somebody has no loans now but plans on getting a very important loan (e.g. car or home) in the next 4-18 months and wants to get a score boost before they apply for it.  (And also to create a clear trail of having managed an installment loan, possibly in case of a manual review.)

 

The person does not care about the loan staying open for 60 months -- their strategy will be to pay down to 8% 60 days before they apply for their "real" loan. 

 

What they do care about is making sure that they don't have an extra hard pull.  Some of these people also have a low score and could be rejected if they apply for an unsecured loan.

 

Thus somebody needs to do the legwork to find a CU for which all of the following is true:

       (1)  The CU offers SS loans.

       (2)  There is no hard pull to join the CU.

       (3)  There is no hard pull when you apply for the loan.

       (4)  It's not hard to join the CU (no onerous criteria for membership)

 

You'd be helping out a lot of people if you'd call around and find what you consider a safe option that meets all four criteria.  If you do that, I'd love to post your research and then your experience with the loan in our Quest For An Alternative To Alliant thread.

 

Message 19 of 19