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Adding an installment loan -- the Share Secure technique

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stinastina
Established Contributor

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union


@Glen_M wrote:

@stinastina wrote:

 

Tell me about this NFCU secured loan !!! How little can one put down ? Please and thank you !


 

For as little as $250, and with higher amounts for as long as 15 years.

 

I did $5k for 60months.  A bunch of other details back in my first couple posts on it:

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...


Does it matter if you do the 250 for 6 months versus a larger amount for a longer period of time in terms of immediate score bump ?

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
Message 1151 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union


@stinastina wrote:

Does it matter if you do the 250 for 6 months versus a larger amount for a longer period of time in terms of immediate score bump ?

 

Whether you do a 6-month or a 60-month loan, it still takes a good month to get any scoring benefit, so there is typically no immediate benefit for either loan.  And then, with the 6-month loan, you'll lose all the benefit you do get once the loan closes, so the 6-month would be an odd choice to make.  But this is explained in the first two posts of this thread, so you know that already, right?

 

Also explained in the first post is the fact that there is no FICO scoring benefit to size of loan. 

 

 

 

Message 1152 of 1,921
stinastina
Established Contributor

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union


@Anonymous wrote:

@stinastina wrote:

Does it matter if you do the 250 for 6 months versus a larger amount for a longer period of time in terms of immediate score bump ?

 

Whether you do a 6-month or a 60-month loan, it still takes a good month to get any scoring benefit, so there is typically no immediate benefit for either loan.  And then, with the 6-month loan, you'll lose all the benefit you do get once the loan closes, so the 6-month would be an odd choice to make.  But this is explained in the first two posts of this thread, so you know that already, right?

 

Also explained in the first post is the fact that there is no FICO scoring benefit to size of loan. 

 

 

 


I meant immediate as to whenever the score bumps. Sheesh. I don't think 6 months is odd since I need to do what I can afford. Since I read all 116 pages, I may be a little fuzzy on the details in the first page, which I will go back and re-read. Have a great evening. 

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
Message 1153 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union

The "do what you can afford" part is a little odd and doesn't really relate to the length of the loan. Remember, for this to work, you need to immediately pay off at least 90% of the loan amount, so even if $250 is all you can afford to tie up for a couple weeks, you still want a long-term loan and not a short-term loan. Even over 5 years, the interest on the remaining ~$50 of a loan is only $10 or less.

 

 

As for this taking about a month to see a score increase, is that because of the new-account hit to one's credit report or because it takes up to a month to hit the credit reports? If Alliant reports on the 30th of the month, as stated earlier in the thread, couldn't a person who opens this account this week see a nice bump by very early July, about 10 days from now? Thanks.

Message 1154 of 1,921
stinastina
Established Contributor

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union


@Anonymous wrote:

The "do what you can afford" part is a little odd and doesn't really relate to the length of the loan. Remember, for this to work, you need to immediately pay off at least 90% of the loan amount, so even if $250 is all you can afford to tie up for a couple weeks, you still want a long-term loan and not a short-term loan. Even over 5 years, the interest on the remaining ~$50 of a loan is only $10 or less.

 

 

As for this taking about a month to see a score increase, is that because of the new-account hit to one's credit report or because it takes up to a month to hit the credit reports? If Alliant reports on the 30th of the month, as stated earlier in the thread, couldn't a person who opens this account this week see a nice bump by very early July, about 10 days from now? Thanks.


Repeating that you all think it's odd to have a short term loan strikes me as a tad judgemental. I've already stated my reason. What do you mean "in order for this to work" ? What benefit are you referring to. Because even if I do a short term loan that reports to my credit report, I guarantee you my score will go up.

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
Message 1155 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union

If you a short term loan you will have short term benefits. The score bump will only last as long as the loan is open.

Message 1156 of 1,921
stinastina
Established Contributor

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union


@Anonymous wrote:

If you a short term loan you will have short term benefits. The score bump will only last as long as the loan is open.


I totally see that but couldn't you simply renew the loan or get another type of loan such as a car loan ?

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
Message 1157 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union

We'll be able to advise you better if we fully understand your situation.  Are you saying that you do not have $500 you can afford to tie up for two weeks, but that you do have $250?

 

Remember that whatever cash you use to secure the loan ($250 for a $250 loan, $500 for a $500 loan, etc.) you will get almost all of it back in a few weeks.

 

I would avoid reading the entire thread.  All you need to know is in the first three posts.  Try reading those again carefully, and then come back with any questions that were not answered there.  And do help us understand your financial situation better.

Message 1158 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union

If you know for sure you're going to have a car loan within 6 months, then I guess it doesn't matter. But the point is, it costs nothing to simply set up a 60-month loan and then pay it off early, if you no longer need it. Thus, why open a 6-MONTH loan and risk needing to open another one, etc., if the car loan is delayed, etc.?

Message 1159 of 1,921
Anonymous
Not applicable

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

Plus opening a 60-month SSL can boost your FICO Scores enough to get you a better auto loan rate.
Message 1160 of 1,921
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