How does an installment loan thru SDFCU work?

[Anonymous]

I know I read somewhere on here about installment loans thru them, but I've been searching through old posts for about an hour and just can't find a succinct explanation. I don't have an installment loan in the mix - just 3 cc's. I'm more interested in what positive effects having one would do on my score. I'm starting to get obsessive about getting scores up - no goal like a mortgage in mind. Higher scores would just make me feel that I've succeeded in fixing the mess.

Am I right that the loan is based on the amount deposited in a savings account? Ex: Deposit $500.00 in savings and get a loan for $500.00 thus just getting your money back and repaying it to that savings account. So the only real benefit is in getting the reporting boost to the CRA.

Would going that route be better than checking with my CU for a small loan. They just gave me a CC with a $5000 limit? I know my CU would be a HP.

I'm just looking for the best way to get an installment into my mix.

TIA

[Anonymous]

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@Anonymous wrote:

I know I read somewhere on here about installment loans thru them, but I've been searching through old posts for about an hour and just can't find a succinct explanation. I don't have an installment loan in the mix - just 3 cc's. I'm more interested in what positive effects having one would do on my score. I'm starting to get obsessive about getting scores up - no goal like a mortgage in mind. Higher scores would just make me feel that I've succeeded in fixing the mess.

Am I right that the loan is based on the amount deposited in a savings account? Ex: Deposit $500.00 in savings and get a loan for $500.00 thus just getting your money back and repaying it to that savings account. So the only real benefit is in getting the reporting boost to the CRA.

Would going that route be better than checking with my CU for a small loan. They just gave me a CC with a $5000 limit? I know my CU would be a HP.

I'm just looking for the best way to get an installment into my mix.

TIA

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For getting a Secured loan from SDFCU:

An excellent place to start is the State Department Federal CU.  You can join for free, if you dont otherwise qualify, by first joining the American Consumer Council (ACC).  You can join ACC using a coupon code of 'consumer' for free.  After you join SDFCU, you can get a secured loan for as low as 250 for 36 months at low interest.  Take the proceeds of the loan and use it as collateral for a 250 secured CC.  Use the CC as any other one.  The entire process can be completed without a HP.  Be aware that they use the Chex System, but will still accept members if it is settled.  The secured loan will also help satisfy the 'credit mix' portion of the Fico scoring, so potential for more points that way.

You might qualify for an unsecured loan from SDFCU as well as other CUs.

hth

[Anonymous]

They won't let you do the 500 for 36 mo anymore. It's only 12 mo as I signed up for it. They also will only let you pay the loan toward only a few months. I took out the 500 secured. Paid it forward (455) leaving 45 to report. My next payment is due June that payment is 42. Then julys payment will pay it off. I got the loan in February.

[gdale6]

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@Anonymous wrote:
They won't let you do the 500 for 36 mo anymore. It's only 12 mo as I signed up for it. They also will only let you pay the loan toward only a few months. I took out the 500 secured. Paid it forward (455) leaving 45 to report. My next payment is due June that payment is 42. Then julys payment will pay it off. I got the loan in February.

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If this is what they are doing then you just want to make the monthly payment to term of the loan you dont want a short changed loan if you are rebuilding.

[Anonymous]

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@gdale6 wrote:

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@Anonymous wrote:
They won't let you do the 500 for 36 mo anymore. It's only 12 mo as I signed up for it. They also will only let you pay the loan toward only a few months. I took out the 500 secured. Paid it forward (455) leaving 45 to report. My next payment is due June that payment is 42. Then julys payment will pay it off. I got the loan in February.

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If this is what they are doing then you just want to make the monthly payment to term of the loan you dont want a short changed loan if you are rebuilding.

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Yea I ddnt know LOL. I just wanted that installment on my TU and EQ as my CU installment doesnt report to those with my currect CU. SO i'm probably going to pay the 3 year one off at my CU and take out another at SDFCU for a little bit more, they said 1000 they will do for 36mo,  after this one is paid off and Just keep it longer and pay double payments untill it's paid forward for awhile.

MY AAoA is already garbage so it wont matter much. But i suggest to anyone else whos wanting an installment is to pay only a few months ahead at a time to get the best benifit from the loan.

I'm hoping this one can be unsecured. I could even try to move my installment loan over from my current CU to SDFCU. I havent researched that part of it yet, but that loan will be a year old soon.

[Anonymous]

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@Anonymous wrote:
They won't let you do the 500 for 36 mo anymore. It's only 12 mo as I signed up for it. They also will only let you pay the loan toward only a few months. I took out the 500 secured. Paid it forward (455) leaving 45 to report. My next payment is due June that payment is 42. Then julys payment will pay it off. I got the loan in February.

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Its too bad they have changed up like that. Maybe check into NASAFCU, They are easy to get into as well, I joined the American Space Society to qualify, which didn't cost anything at all. Opened the account with $25 but never did anything through them.

Has anyone done secured loans with NASAFCU?