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Senior Contributor
Posts: 13,274
Registered: ‎01-04-2014

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

@Absolution16

 

Once that paid down percentage settles into the proverbial "sweet spot" as indicated by CreditGuyInDixie's reply to your Q's, and reports to the CRA's at the next statement period, you will realize a markedly noticable new gain by virtue of FICO's own rule system that applies to the previously discussed variables available within Mix category itself as pertains directly to IL's.

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


markrexh wrote:
For credit mix does my open mortgage act as an open installment? Or is that considered a different account type

Open installment; ergo this reindeer game is not for you (or for me anymore either heh).

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 688, TU 4 758, EX 2 703, EQ 8 728, TU 8 762, EX 8 739 (6/12/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Registered: ‎12-30-2011

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


Absolution16 wrote:

UPDATE:

 

It took exactly 3 business days, as told by Dixie, to have my $510 of the funds as "available."  I went ahead and finished the application process.  $500 shared secured loan for 60 months, rebuilding credit purpose, etc.  At the bottom of the application page, it did state that Alliant will pull credit information, but as I have read from others, only a soft pull is initiated, so I am hoping that no hard pull is done on my credit report.

 

I submitted my e-mail address as the contact info, so I should probably get an e-mail reply sometime this week?

 

Question:  Is it a good idea to ask for a payment date at an earliest available date so that I can actually make my first lump-sum payment ASAP?  If I pay off $420, do I get exactly $420 of the funds in my Alliant savings account unfrozen?


Doesn't really matter, I wouldn't rock the boat we're talking a month here.

 

Alliant keeps double the loan amount as a security deposit, so if you have $80 left on the loan, you'll have $160 held in my experience.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 688, TU 4 758, EX 2 703, EQ 8 728, TU 8 762, EX 8 739 (6/12/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Posts: 101
Registered: ‎03-07-2016

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

Thanks to Dixie's in-depth guide, Revelate's personal experience, and everyone else who have chimed in, I think I now am at a comfortable spot.

 

Just like I was told, my first loan transfer did go through for $9.19 on April 7.  I waited until this morning to do a few things:

 

1.  Checked to make sure that the auto transfer did indeed go through and reduced the balance on my loan.

2.  Made additional payment to the loan from the Alliant savings account, to reduce the loan balance to $43 and some change.

3.  Deleted the auto transfer from savings to loan for $9.19 every 7th of the month.

4.  Transferred out most of my funds from the Alliant savings account back to my external account, leaving just $94.81 as current balance and $46.78 as available balance on my Alliant savings account.  Seems to match the pattern that Revelate indicated previously to my question.

 

Alliant indeed did report to the bureaus, starting April 6, reporting the $80 balance on the loan.  The credit report factors indicate this as a negative, stating that the remaining balance on the installment loan is too high.  However, it also took out the negative factor of not having any installment loan.  Now once May 6 hits, my balance on the installment loan should report at less than 9%, which should help me quite a bit, like stated below:


CreditMagic7 wrote:

@Absolution16

 

Once that paid down percentage settles into the proverbial "sweet spot" as indicated by CreditGuyInDixie's reply to your Q's, and reports to the CRA's at the next statement period, you will realize a markedly noticable new gain by virtue of FICO's own rule system that applies to the previously discussed variables available within Mix category itself as pertains directly to IL's.


So now, the only things left to do it seems is to:

 

1.  Check back on May 6 to see update on my credit report

2.  Check back on May 7 and on for the next few days to see if the funds transfer did indeed get deleted.

3.  Assuming that the funds transfer did get deleted, to make sure that both Alliant account stay active by making manual transfer periodically.

 

That's the update so far.  I will post more when there is more to update.

 

Thank you again to all the contributors, and special thanks to Dixie and Revelate.


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Senior Contributor
Posts: 3,970
Registered: ‎07-17-2014
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Re: Adding an installment loan -- the Share Secure technique

Glad everything has gone well.  Good luck.

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Registered: ‎01-21-2016
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Re: Adding an installment loan -- the Share Secure technique

[ Edited ]

did this just now! now i await for the email. Smiley Happy 

 

edit: same day!?!? that was quick! 

 

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FICO scores | Inq | AAoA: EX: 809 | 6 | 3yrs \ TU: 811 | 2 | 2yrs \ EQ: ? | 1 | 2yrs

Frequent Contributor
Posts: 495
Registered: ‎01-21-2016
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Re: Adding an installment loan -- the Share Secure technique

what's the drawback of not paying $420 but instead paying it more, perhaps $460, to make it report <9% from the get-go? 

wishlist: Marvel Spider-Man MC \ PenFed CU \ NFCU \ Golden1 CU | gardening since June '16

FICO scores | Inq | AAoA: EX: 809 | 6 | 3yrs \ TU: 811 | 2 | 2yrs \ EQ: ? | 1 | 2yrs

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Senior Contributor
Posts: 3,970
Registered: ‎07-17-2014

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

Hi Incubus.  You certainly can do that.  Unlike a savings account, however, you can't put debt back into a loan once you have paid it down.

 

So what many people choose to do is to pay a lot of it off right away, but still leave enough debt so that one or two autopays could go through and still be above $44.  As you will see as you read the guidance, the DELETE button next to the autopay does not work at first.  You actually have to let the first autopay go through, wait for a day, and then delete it. 

 

In theory you could pay your debt down to $44, let the first autopay go through (another $9-10), and then delete it.  But now your balance is down to $35 and you still are signing on in a month to turn off your autopay. 

 

If a person is desperate to get every possible FICO point as fast as possible, then I would pay it down immediately.  But if you can afford to wait, it may make sense to pay it down once and then make the final much smaller payment once the autopay is turned off.

Community Leader
Super Contributor
Posts: 14,568
Registered: ‎11-11-2014

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

Good job on this thread... Very thorough information.

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Posts: 248
Registered: ‎06-16-2015
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Re: Adding an installment loan -- the Share Secure technique

[ Edited ]

@CGID 

So, Alliant is known to report these loans slowly huh?

 

BTW thank you for informative post(s). Very valuable info. Thumbs up

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