Should I get an installment loan?

[Anonymous]

So I applied last night, and woke up to text messages asking me to call NFCU for verification which seemed normal because I had to verbally agree to the terms with alliant.  I checked my secure message box and found a message stating I was approved for the $500 shares secured loan for 65 months, and they were waiting for me to confirm I still wanted it.  Instead of responding by secure message I called which was a big mistake. 

The person on the phone stated the secure message was incorrect, because they only offer 60 months on $3000 secured loans, and I would be granted 6 months for $500.  After going back and forth I finally caved.  I figured I could try for 60 months for a $500 loan again at the end of 6 months, and only by secure message next time . . .

[manyquestions]

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@Anonymous wrote:

So I applied last night, and woke up to text messages asking me to call NFCU for verification which seemed normal because I had to verbally agree to the terms with alliant.  I checked my secure message box and found a message stating I was approved for the $500 shares secured loan for 65 months, and they were waiting for me to confirm I still wanted it.  Instead of responding by secure message I called which was a big mistake. 

The person on the phone stated the secure message was incorrect, because they only offer 60 months on $3000 secured loans, and I would be granted 6 months for $500.  After going back and forth I finally caved.  I figured I could try for 60 months for a $500 loan again at the end of 6 months, and only by secure message next time . . .

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Ouch. That's too bad. But it will give you a chance to experience how paying ahead works with them to see if it is similar to Alliant.

[Anonymous]

Hey YV.  Was sorry to hear that 15 year shared secured loan for a small to medium amount wasn't available. 

Currently it looks like the best way for a person who wants to use the SS loan technique (due to his lack of any open installment loans) is to use Alliant and implement a series of five-year $500 SS loans, paying each one down to $44 at the beginning, and adding a new loan as the previous one is nearing its five year term.

I don't know of another lender who allows you to do all of the following:

      Use the SS technique on a very small original loan amount ($500)

      Pay most of it off early on

      Keep it open for a full five years

Even Alliant is not perfect for us here.  The dream come true situation would be a lender that allowed a longer term (7?  10?) and also allowed you to make automatic billpays to keep it open, neither of which Alliant lets you do. 

Anyone who discovers a lender that is as good or better than Alliant here, I would like to know.  I don't mind if the lender requires more to lock down the loan (1k, 2k, etc.) as long as he unlocks the portion I pay off in principal.

[olehammer]

I've initiated secured loans with both SDFCU and Alliant so i thought i'd share a summary of my experince with each

SDFCU

* SP for membership and Secured Loan.  (note as of 2016 they are HP for membership)

* I recently paid down to 9% of initial $500 balance. It only pushed the new payment date out 90 days.

* Not sure if it will push out another 90 days once i make the next payment due in March.

Alliant

* SP for membership and secured loan.  Great experience setting up and great customer service via phone to confirm a few items.

* Was able to take out $500 (with $505 in savings balance) for 5 year term at 4%.

* Paid down 2 months right away and next due date was pushed out.

* No mention of minimum $7 payment.  Note - i wasn't able to schedule recurring payments at a different value that the normal payment amount.

* Planning on bulk paydown to less than 9% in a few months. 

* My plan will be to pay $1 every other month once paid down, manually scheduled as a one time payment each time.

Given both experiences my vote and recommendation for forumites would be to go with Alliant.

[manyquestions]

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@olehammer wrote:

I've initiated secured loans with both SDFCU and Alliant so i thought i'd share a summary of my experince with each

SDFCU

* I recently paid down to 9% of initial $500 balance. It only pushed the new payment date out 90 days.

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Looks like SDFCU is not very useful if the max it will push the date forward is 90 days. Thanks for the info.

[Anonymous]

Sorry to hear YF!

So I finally got an email from Alliant this morning saying I needed to call, no way to do it over the phone.
I just got off the phone and hace the $500 SS loan for 60 months. The rate is 4% but the $$ in savings account - although frozen - accrues interest at 1%. So really it's a 3% @ 60 mo. I declined auto payments. Rep confirmed that pre-paying will push out the next due date by however many months I paid ahead. Looks like cost will be just over $9/mo.
Loan docs are being emaiked to me for my electronic signature. Funds are going to be deposited into the High Rate checking account I opened (with an $80 sign-up bonus!).
Although the snafu with the email and the LONG wait for contact rubbed me the wrong way, the LO was very nice and it seems like it will be smooth from here on out.
Hope so!

[Anonymous]

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@Anonymous wrote:
Sorry to hear YF!

So I finally got an email from Alliant this morning saying I needed to call, no way to do it over the phone.
I just got off the phone and hace the $500 SS loan for 60 months. The rate is 4% but the $$ in savings account - although frozen - accrues interest at 1%.@ So really it's a 3% @ 60 mo. I declined auto payments. Rep confirmed that pre-paying will push out the next due date by however many months I paid ahead. Looks like cost will be just over $9/mo.
Loan docs are being emaiked to me for my electronic signature. Funds are going to be deposited into the High Rate checking account I opened (with an $80 sign-up bonus!).
Although the snafu with the email and the LONG wait for contact rubbed me the wrong way, the LO was very nice and it seems like it will be smooth from here on out.
Hope so!

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So if you were to pay down the loan- say 90% - you would still not be able to access the funds in the savings account until the loan was completed?

[olehammer]

As you pay down (on Alliant or SDFCU) the secured portion becomes available.

For example, if you start out at $500 and pay down $100 then only $400 is unavailable.

You need a balance above the current balance of the loan in your account to make payments.  Either that or you can pay from a connected checking account.

[Anonymous]

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@Anonymous wrote:
Sorry to hear YF!

So I finally got an email from Alliant this morning saying I needed to call, no way to do it over the phone.
@I just got off the phone and hace the $500 SS loan for 60 months. The rate is 4% but the $$ in savings account - although frozen - accrues interest at 1%. So really it's a 3% @ 60 mo. I declined auto payments. Rep confirmed that pre-paying will push out the next due date by however many months I paid ahead. Looks like cost will be just over $9/mo.
Loan docs are being emaiked to me for my electronic signature. Funds are going to be deposited into the High Rate checking account I opened (with an $80 sign-up bonus!).
Although the snafu with the email and the LONG wait for contact rubbed me the wrong way, the LO was very nice and it seems like it will be smooth from here on out.
Hope so!

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I am gled the loan is all done WestRiver. Hope it all goes smooth from here on out for you.

[Anonymous]

Thanks Slim! I hope so too. The funds were transferred into the checking account. Now I'm undecided whether I should make a large payment to take the loan to under 10%, or if I should wait until the account posts to the CRAs and then pay?