Help, asking CU for loan on my terms ?

Anonymous · ‎12-09-2015

So I applied for a rebuilder loan the other day, and haven't heard back .

I called this morning and asked for an update . The csr said looks like they were still working on it and to call back later this afternoon.

After I hung up got this idea in my head ," why not ask for what I'm really looking for" so I logged on to check the status of my app, so I could send a message directly to the underwriting dept. and asked for a builder loan for $2500 , with terms are the funds are placed on hold, repayment over 24mos ,and 5 %apr .

This CU doesn't currently have a product with those terms, has anyone ever asked the CU for something they didn't exactly have ?

CH-7-Mission-Accomplished · ‎12-09-2015

@Anonymous wrote:
So I applied for a rebuilder loan the other day, and haven't heard back .

I called this morning and asked for an update . The csr said looks like they were still working on it and to call back later this afternoon.

After I hung up got this idea in my head ," why not ask for what I'm really looking for" so I logged on to check the status of my app, so I could send a message directly to the underwriting dept. and asked for a builder loan for $2500 , with terms are the funds are placed on hold, repayment over 24mos ,and 5 %apr .

This CU doesn't currently have a product with those terms, has anyone ever asked the CU for something they didn't exactly have ?

Banks and CUs don't typically issue loans on terms other than their own. They are managing a lot of customers and they need some consistency.

Moreover, your plan is flawed. For a credit builder, you want the lowest possible amount for the longest possible term for the lowest possible rate. You get no brownie points for having a $2500 credit builder versus a $300 credit builder. All you achieve is higher payments and you pay more in interest. That's it.

I stupidly made this rookie mistake myself, opening two credit builder loans in the first year, one for 6 months, one for 12 months. Dumb move! I later opened a four year $3000 one. I should have opened it for $500!!!

Also, it is not normal for a credit union to underwriter a credit builder loan or do an HP to approve it. Normally, you make the deposit and get the loan, no questions asked -- if you are a member.

That said, you should join Alliant CU and open a $500 shared secured loan for 48 months at today's rate of 3.0%.

Opening these installment loans more often, like every 12 months, is counterproductive since it cuts your average age of accounts and the loans never get seasoned for scoring purposes. If you could find a 10 year credit builder for $1000, that would be ideal, but I don't know anyone that will issue one for that long.

Anonymous · ‎12-09-2015

CH-7-Rebuilding

The amount I asked for wasn't a random amount , it is what I am comfortable with saving every month . I'm in the process of building up my emergency fund and starting from scratch, (nope I don't have 500 at this moment) but I'm the type that likes to kill two birds with one stone(save and rebuild),and the account they would deposit the funds in still earns i2% cutting what I'm paying in interest down to 3%, similarly like other products out here. The worse they can say is no, and give an offer or not.

48 months isn't bad at all , thanks.

Anonymous · ‎12-09-2015

@Anonymous wrote:
So I applied for a rebuilder loan the other day, and haven't heard back .

I called this morning and asked for an update . The csr said looks like they were still working on it and to call back later this afternoon.

After I hung up got this idea in my head ," why not ask for what I'm really looking for" so I logged on to check the status of my app, so I could send a message directly to the underwriting dept. and asked for a builder loan for $2500 , with terms are the funds are placed on hold, repayment over 24mos ,and 5 %apr .

This CU doesn't currently have a product with those terms, has anyone ever asked the CU for something they didn't exactly have ?

Well, my first question is - do you really NEED a rebuilder loan? You only need one open active installment loan for scoring purposes, if you have an auto loan or student loans, you are good to go and do not need to get another loan.

CH-7-Mission-Accomplished · ‎12-09-2015

@Anonymous wrote:
CH-7-Rebuilding

The amount I asked for wasn't a random amount , it is what I am comfortable with saving every month . I'm in the process of building up my emergency fund and starting from scratch, (nope I don't have 500 at this moment) but I'm the type that likes to kill two birds with one stone(save and rebuild),and the account they would deposit the funds in still earns i2% cutting what I'm paying in interest down to 3%, similarly like other products out here. The worse they can say is no, and give an offer or not.

48 months isn't bad at all , thanks.

Just so you understand, on a credit builder loan, say for $500, you only have to tie up your $500 for a few days at most. You give the CU $500 to put in your savings account. They draw up loan documents that you sign, and they give you back your $500 on the spot -- by depositing it into your checking or that same savings account. So if they put it in the savings account, the account would now show a balance of $1000 with $500 available that you can withdraw.

So if you pay let's say $800 for rent, you could use some of that money on say the 15th of the money, open your credit builder account, and you would have the money back by the 20th of the month. So you do not have to tie up your own money. It is just the way the credit builder loan is established.

And then as you pay down the loan through monthly payments, they release the principal amount by that amount each month.

It's so much better than taking out a loan where the CU requires no deposit, but they want to fund the savings account themselves, charge 7% or more in interest, do an HP and run your credit -- all for no reason at all!

Don't mix up saving money with the credit builder loan. By all means open a savings account and save. In fact if you did not need the $500 for your rent that month, you could use that initial $500 cash back to stay in your savings account and get you started. So you would have $1000 in savings, $500 available, $500 being used as security.

Anonymous · ‎12-09-2015

@CH-7-Mission-Accomplished wrote:
@Anonymous wrote:
CH-7-Rebuilding

The amount I asked for wasn't a random amount , it is what I am comfortable with saving every month . I'm in the process of building up my emergency fund and starting from scratch, (nope I don't have 500 at this moment) but I'm the type that likes to kill two birds with one stone(save and rebuild),and the account they would deposit the funds in still earns i2% cutting what I'm paying in interest down to 3%, similarly like other products out here. The worse they can say is no, and give an offer or not.

48 months isn't bad at all , thanks.

Just so you understand, on a credit builder loan, say for $500, you only have to tie up your $500 for a few days at most. You give the CU $500 to put in your savings account. They draw up loan documents that you sign, and they give you back your $500 on the spot -- by depositing it into your checking or that same savings account. So if they put it in the savings account, the account would now show a balance of $1000 with $500 available that you can withdraw.

So if you pay let's say $800 for rent, you could use some of that money on say the 15th of the money, open your credit builder account, and you would have the money back by the 20th of the month. So you do not have to tie up your own money. It is just the way the credit builder loan is established.

And then as you pay down the loan through monthly payments, they release the principal amount by that amount each month.

It's so much better than taking out a loan where the CU requires no deposit, but they want to fund the savings account themselves, charge 7% or more in interest, do an HP and run your credit -- all for no reason at all!

Don't mix up saving money with the credit builder loan. By all means open a savings account and save. In fact if you did not need the $500 for your rent that month, you could use that initial $500 cash back to stay in your savings account and get you started. So you would have $1000 in savings, $500 available, $500 being used as security.

Agreed - those kind of "credit building" loans are total ripoffs, IMHO. THey are simply charging YOU interest for depositing money into a savings account each month, and reporting that as "payments" on a loan that in reality, was never issued.

Anonymous · ‎12-09-2015

CH-7-Rebuilding wrote:

That said, you should join Alliant CU and open a $500 shared secured loan for 48 months at today's rate of 3.0%.

So I called them, and asked about doing 500 for 48 and was told no, most they would that amount for was 12.

Anonymous · ‎12-09-2015

@Anonymous wrote:
@CH-7-Mission-Accomplished wrote:

That said, you should join Alliant CU and open a $500 shared secured loan for 48 months at today's rate of 3.0%.

So I called them, and asked about doing 500 for 48 and was told no, most they would that amount for was 12.

@SDFCU will do $500 for 36 months @ 3.99%. Payments are a bit less than $15 a month.

CH-7-Mission-Accomplished · ‎12-09-2015

@Anonymous wrote:
@Anonymous wrote:
@CH-7-Mission-Accomplished wrote:

That said, you should join Alliant CU and open a $500 shared secured loan for 48 months at today's rate of 3.0%.

So I called them, and asked about doing 500 for 48 and was told no, most they would that amount for was 12.

@SDFCU will do $500 for 36 months @ 3.99%. Payments are a bit less than $15 a month.

@Anonymous's 3% interest for savings secured loan up to 48 months, or 4% for a loan from 49 months to 60 months. They have one loan @ 3% for 12 months where it's a lump sum at the end. See the attached link from their website. Somebody gave you bad information or you didn't understand them.

https://www.alliantcreditunion.org/borrow/get-a-credit-union-personal-loan#compare

Anonymous · ‎12-09-2015

@CH-7-Mission-Accomplished wrote:
@Anonymous wrote:
@Anonymous wrote:
@CH-7-Mission-Accomplished wrote:

That said, you should join Alliant CU and open a $500 shared secured loan for 48 months at today's rate of 3.0%.

So I called them, and asked about doing 500 for 48 and was told no, most they would that amount for was 12.

@SDFCU will do $500 for 36 months @ 3.99%. Payments are a bit less than $15 a month.
@Anonymous's 3% interest for savings secured loan up to 48 months, or 4% for a loan from 49 months to 60 months. They have one loan @ 3% for 12 months where it's a lump sum at the end. See the attached link from their website. Somebody gave you bad information or you didn't understand them.

https://www.alliantcreditunion.org/borrow/get-a-credit-union-personal-loan#compare

Any idea what CRA and score variant Alliant pulls for Auto Loans?