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Adding an installment loan -- the Share Secure technique

Community Leader
Senior Contributor

Re: Adding an installment loan -- the Share Secure technique - NFCU


chord wrote:

I just signed up for the Alliant Savings Secured Loan last month. Alliant claims they reported the account to all three credit bureaus on 07/01/2017, the first day of the month after I opened the account. It did not report to Equifax until 07/08/2017 (Alliant customer service saidf it could take up to two weeks to see it on your credit reports). It has not reported to the other two credit bureaus as of yet. I only saw a 2 point score boost in my Vantage 3.0 score on Equifax, however I had done some credit repair work prior to getting the loan. I removed all negative collection accounts that were paid off the report. Then I was added as an Authorized User on 3 family credit cards which boosted my score considerably. I have 0 credit cards in my name, 3 authorized user credit cards, and 1 savings secured loan. I have a feeling the score boost will be more significant when it has a few months of payment history. I opened the Savings Secured with $500, and paid $420 off immediately as mentioned in the guide and the first autopay is setup for 08/03/2017. The main point of this account is to change the credit mix and to have a solid and lengthy payment history, so I will focus on that long term goal.


Welcome to the forums!

 

There's no reason to believe that this technique will help you with your Vantage scores.  Do you have any tools for checking your FICO 8 scores?

 

Once the loan has been on your reports at < 8.9% (for a couple months in a row), I would begin making plans for acquiring credit cards in your own name.  No need to rush that, but a reasonable goal should be to have three cards in your own name by June of next year.

Message 1201 of 1,651
Established Member

Re: Adding an installment loan -- the Share Secure technique

Updating my Alliant situation, I ended up being able to get my account fully up and running and then paid down to a $44 balance by the end of business on June 30, as I had been hoping, and this morning I got an alert that it was reporting to TransUnion. The TU entry is completely up to date, showing the original balance, the current $44 balance, etc.

 

If I had to do it over again, I would have started the process no later than the 15th of the month, but it appears that an account can literally be opened and paid down on the 30th of the month and still make that month's Alliant update to the credit bureaus. (The guidance on page 1 suggests trying to get it done at least three business days before the 30th, but that appears to be unnecessary.)

 

Unfortunately, the two CC issuers that give me a free monthly TU score both tend to update around the 23rd of the month, so it might be a while before I see the effect on my TU score. Ditto for Equifax, which I get once a month around the 23rd. Amex updated my Experian score about 4 days ago, so as soon as I get an alert that the account is reporting to Experian, I can log into the Discover FICO site and refresh my score there, so I'll know the exact impact of the Alliant loan on my EX score. (All of my CCs close on the 20th of the month, so there shouldn't be any updates/changes to my EX report except for the Alliant loan.)

 

Thanks again to CGID, et al., for the great thread.

Message 1202 of 1,651
Established Member

Re: Adding an installment loan -- the Share Secure technique

As a further update to the above, my Alliant loan reported one day later to Equifax, but it's now the 17th and it still hasn't shown up at Experian, which usually reports new accounts sooner than TU and EQ. Not sure what's up there.

 

After getting errors for many days while trying to delete the auto-pay of my first payment, I was able to delete it once the first payment was only about 2 days away. This is consistent with prior reports here.

 

None of my TU or EQ free credit scores from my banks have updated since last week, so I have no FICO updates to report.

Message 1203 of 1,651
Highlighted
New Contributor

Re: Adding an installment loan -- the Share Secure technique

Joe - I got my SSL on June 20 and no report to Experian. I got 10---15 points on TU and EQ but I had other things going on (2 CC apps and 14% UTI on June 30, now 8.8%). I think that bump is about right given my activity.

 

Hopefully we'll find out about EX in a coupe weeks.

Message 1204 of 1,651
Established Member

Re: Adding an installment loan -- the Share Secure technique


Cfrepro wrote:

Joe - I got my SSL on June 20 and no report to Experian. I got 10---15 points on TU and EQ but I had other things going on (2 CC apps and 14% UTI on June 30, now 8.8%). I think that bump is about right given my activity.

 

Hopefully we'll find out about EX in a coupe weeks.


Thanks for the reply. I seem to recall people in this thread mentioning some sort of glitch that kept Alliant from reporting to, or updating, Experian, but they said it had been corrected. I wonder if that problem has reappeared.

Message 1205 of 1,651
Established Member

Re: Adding an installment loan -- the Share Secure technique

Updating again, my TransUnion score was refreshed yesterday via one of my credit card accounts, and it jumped from 691 in late June pre-Alliant to 733 yesterday.

 

A few accounts and a couple inquiries aged past 12 months either last month or this month, so it's possible the entire increase isn't due to Alliant, but it clearly gave me a big jump. My overall utilization is about the same as in June and nothing else was added to or deleted from my reports.

 

I'll post again when I get EX and EQ updates.

 

Thanks again for the great thread. Great to be back in the 700s across the board.

Message 1206 of 1,651
Regular Contributor

Re: Adding an installment loan -- the Share Secure technique


joe_miami wrote:

Updating again, my TransUnion score was refreshed yesterday via one of my credit card accounts, and it jumped from 691 in late June pre-Alliant to 733 yesterday.

 

A few accounts and a couple inquiries aged past 12 months either last month or this month, so it's possible the entire increase isn't due to Alliant, but it clearly gave me a big jump. My overall utilization is about the same as in June and nothing else was added to or deleted from my reports.

 

I'll post again when I get EX and EQ updates.

 

Thanks again for the great thread. Great to be back in the 700s across the board.


For some reason I can't give you kudos - but that's awesome ! Congrats !

 

I just paid 93% of my loan yesterday and am still waiting fot NFCU to return it to me. They told me it takes 24-48 hours, whereas most people reported they got theirs back immediately. I think I am on some kind of slow track with NFCU where everything is going 100x slower than the average person.

 

I don't think they will report until the 23rd but I wanted to get it out of the way.


BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
11/17 ~ EX: 646; TU: 650; EQ: 639
Message 1207 of 1,651
Regular Contributor

Re: Adding an installment loan -- the Share Secure technique

I've decided to do this SSL technique because though I have a closed (in Feb 2013) installment loan (auto), every website where I can get a full report or synopsis dings me for my lack of credit mix (I have CCs only).  My purpose for doing this is to prime the pump for a new auto loan in 20 months.  I'd like to qualify for a 0% or 1.9% dealer-incentive interest rate and with all the recent positive changes to my credit file along with having an open installment loan under 9% utilization, I'm feeling like I'd qualify.  So away we go! Like so many others I'll report my progress here.

 

 

On July 19th I attempted to join Alliant.  I say attempted because the process wasn't instant.  I got back a message saying something to the effect of 'I could not be approved at this time and a membership representitive will need to look over my application'.  Huh.  Well, it didn't seem to matter as I got an email from them about 15 hours later saying welcome to Alliant.  I have no idea what that was about.

 

ETA:  Since I'm impatient I'm going to have to call Alliant to get my membership number so I can fund my account.  Must. Not. Expose. Scheme. To. CSR's.

 

Moving on to step 2...



EX 743 // TU 713 // EQ 715
Message 1208 of 1,651
Regular Contributor

Re: Adding an installment loan -- the Share Secure technique

Update:

 

So I got through all the account set up stuff and now I need to wait for the verification process to be completed on Alliant's end.  It's a common practice -- Alliant makes a deposit into my account, then I come back to Alliant and tell them how much it was in order to prove that's really my account.  

 

They say this process takes up to 3 business days.  We shall see.

 

alliant.png



EX 743 // TU 713 // EQ 715
Message 1209 of 1,651
Regular Contributor

Re: Adding an installment loan -- the Share Secure technique


joe_miami wrote:

Updating again, my TransUnion score was refreshed yesterday via one of my credit card accounts, and it jumped from 691 in late June pre-Alliant to 733 yesterday.

 

A few accounts and a couple inquiries aged past 12 months either last month or this month, so it's possible the entire increase isn't due to Alliant, but it clearly gave me a big jump. My overall utilization is about the same as in June and nothing else was added to or deleted from my reports.

 

I'll post again when I get EX and EQ updates.

 

Thanks again for the great thread. Great to be back in the 700s across the board.


Man that's a nice jump!  I'm glad that my file will go static by the time the Alliance goodness hits so I'll be able to tell which is which.  I'm sure you got something for your inquiries but who knows if you got anything for your accounts aging past 12 months.  Did that cause your AAoA to round to the nearest whole or something?  

 

 



EX 743 // TU 713 // EQ 715
Message 1210 of 1,651