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crazy app spree and bizarro world of fico

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lord_kinbote
Established Contributor

Re: crazy app spree and bizarro world of fico

Ok, Alliant just gave me a call.  Obviously, the CSR I spoke with was very misguided.  Additionally, Alliant would in fact do a 60 month shared secured loan but the interest was at 3.8%.  I left at 48 months to take advantage of the 2.80% interest rate. I know, 9 dollars and some change is nothing to get in a fuss about.  I had the option for a check to be sent or for Alliant to drop the funds in my Alliant savings account.  I picked the account so I could just transfer back to my bank account.  

 

As soon as the funds get processed back into my bank account I am gong to repeat the process - but this time I am going to take advantage of my new relationship with NASAFCU - assuming they do not do a HP for a share secured loan.  That would be funny if they did, assuming they gave me a 30k CL on a CC with a SP!

Message 41 of 48
lord_kinbote
Established Contributor

Re: crazy app spree and bizarro world of fico

Just signed my documents online.  On a side note, I called NASAFCU and the minimum amount they require for a share secured loan is 1,000.00.  For a 60 month term, the interest rate is 3.1, so that would cost me 80 dollars and some change for a 5 year loan.  That does not seem cost effective, but it still may be an option to avoid a HP.  Question, can I just open a second share secured loan with Alliant or should they be from different sources?  Thanks in advance for the insight.

Message 42 of 48
jamie123
Valued Contributor

Re: crazy app spree and bizarro world of fico


@akula wrote:

Just signed my documents online.  On a side note, I called NASAFCU and the minimum amount they require for a share secured loan is 1,000.00.  For a 60 month term, the interest rate is 3.1, so that would cost me 80 dollars and some change for a 5 year loan.  That does not seem cost effective, but it still may be an option to avoid a HP.  Question, can I just open a second share secured loan with Alliant or should they be from different sources?  Thanks in advance for the insight.


It's up to you but I would suggest opening an account with another credit union so you have another different lender on your reports. I would suggest opening an account with SDFCU (State Department Federal Credit Union). If I remember correctly it is free to join but you have to join as a member of some organization that is free to join also. (Similar to how you joined NASA FCU).

 

They would only give me a 2 year term on a $500 loan but others here have recieved 60 month $500 loans. They too wanted me to increase the size of the loan for a longer term. You can open a savings account and get a shared secured loan without any HPs.

 

SDFCU has all kinds of benefits related to foreign travel if you do much of that. They also have low APRs on all their loans. It would at least be worth your time to investigate them a bit.


Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20
Message 43 of 48
lord_kinbote
Established Contributor

Re: crazy app spree and bizarro world of fico

Thanks, I will check them out today.
Message 44 of 48
lord_kinbote
Established Contributor

Re: crazy app spree and bizarro world of fico


@jamie123 wrote:

@akula wrote:

Just signed my documents online.  On a side note, I called NASAFCU and the minimum amount they require for a share secured loan is 1,000.00.  For a 60 month term, the interest rate is 3.1, so that would cost me 80 dollars and some change for a 5 year loan.  That does not seem cost effective, but it still may be an option to avoid a HP.  Question, can I just open a second share secured loan with Alliant or should they be from different sources?  Thanks in advance for the insight.


It's up to you but I would suggest opening an account with another credit union so you have another different lender on your reports. I would suggest opening an account with SDFCU (State Department Federal Credit Union). If I remember correctly it is free to join but you have to join as a member of some organization that is free to join also. (Similar to how you joined NASA FCU).

 

They would only give me a 2 year term on a $500 loan but others here have recieved 60 month $500 loans. They too wanted me to increase the size of the loan for a longer term. You can open a savings account and get a shared secured loan without any HPs.

 

SDFCU has all kinds of benefits related to foreign travel if you do much of that. They also have low APRs on all their loans. It would at least be worth your time to investigate them a bit.


Quick question.  How does Alliant or SDFCU report the installment loan?  Does it show that it is secured?  I doubt this has an impact for fico scoring purposes, but was curious.  I noticed a thread in connection with SDFCU and secured credit cards that was from 2013, which indicated SDFCU started reporting certain revolving account as secured; this upset a lot of the credit rebuilders.

Message 45 of 48
Revelate
Moderator Emeritus

Re: crazy app spree and bizarro world of fico


@akula wrote:

@jamie123 wrote:

@akula wrote:

Just signed my documents online.  On a side note, I called NASAFCU and the minimum amount they require for a share secured loan is 1,000.00.  For a 60 month term, the interest rate is 3.1, so that would cost me 80 dollars and some change for a 5 year loan.  That does not seem cost effective, but it still may be an option to avoid a HP.  Question, can I just open a second share secured loan with Alliant or should they be from different sources?  Thanks in advance for the insight.


It's up to you but I would suggest opening an account with another credit union so you have another different lender on your reports. I would suggest opening an account with SDFCU (State Department Federal Credit Union). If I remember correctly it is free to join but you have to join as a member of some organization that is free to join also. (Similar to how you joined NASA FCU).

 

They would only give me a 2 year term on a $500 loan but others here have recieved 60 month $500 loans. They too wanted me to increase the size of the loan for a longer term. You can open a savings account and get a shared secured loan without any HPs.

 

SDFCU has all kinds of benefits related to foreign travel if you do much of that. They also have low APRs on all their loans. It would at least be worth your time to investigate them a bit.


Quick question.  How does Alliant or SDFCU report the installment loan?  Does it show that it is secured?  I doubt this has an impact for fico scoring purposes, but was curious.  I noticed a thread in connection with SDFCU and secured credit cards that was from 2013, which indicated SDFCU started reporting certain revolving account as secured; this upset a lot of the credit rebuilders.


Alliant, USAA, and presumably DCU report as secured.  Doesn't matter: all the big ticket installment loans (mortgage, auto, HELOC in some cases) are all secured by definition.

 

SDFCU might not as I don't think their secured credit card used to but I never used it personally.  I wouldn't pick on secured vs. not personally, look at term and financial costs and if they report to all 3 bureaus.  

 

Always compare the APR with the interest rate on the underlying deposit, but there's cheaper ways than doing it with NASA FCU apparently.  Thank you for your research on that one.




        
Message 46 of 48
lord_kinbote
Established Contributor

Re: crazy app spree and bizarro world of fico


@Revelate wrote:

Alliant, USAA, and presumably DCU report as secured.  Doesn't matter: all the big ticket installment loans (mortgage, auto, HELOC in some cases) are all secured by definition.

 

SDFCU might not as I don't think their secured credit card used to but I never used it personally.  I wouldn't pick on secured vs. not personally, look at term and financial costs and if they report to all 3 bureaus.  

 

Always compare the APR with the interest rate on the underlying deposit, but there's cheaper ways than doing it with NASA FCU apparently.  Thank you for your research on that one.


I app'd SDFCU for a savings account after completing membership with American Consumer Council.  The only response I received from SDFCU is that they would be contacting me in 1-3 days.  Yes, I checked NASAFCU off the list when I learned about the 1k min requirment.  I am going to shoot for a 5 year with SDFCU, but I will post my results over the next few days.  I am about to transfer the 500 that Alliant dropped in my savings account back to my bank account so I can repeat for SDFCU.  

 

It may be hard to discern the impact on my fico score, because I have a lot of new accounts (9 revolving plus these 2 installments).  6 of the 9 new revolving accounts have hit EX, and only 4 are reporting on EQ/TU as of yet - but I will post the results as myfico alerts me.

 

The theory about a 2 year and 4 year installment sounds interesting - I think the recommendation was abandoned by OP, but if SDFCU only provides a 2 year term for the share secured loan, it may prove entertaining..

Message 47 of 48
Anonymous
Not applicable

Re: crazy app spree and bizarro world of fico

I applied to Alliant FCU yesterday and got an approval e-mail notification today. I will be following the advice in this thread and taking out a secured loan. I also applied to the NASA FCU yesterday as well. No hard pulls on my account for either of those (so far). Fingers crossed.

Message 48 of 48
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