topic Re: Secured loans in Personal Finance

Secured loans

Nelsoul — Sat, 28 Nov 2020 16:40:25 GMT

I recently joined Andrew's and NFCU Would like to do a secured loan to add a credit mix. Andrew's has a shared secured loan that seems to be the same as NFCU pledge loan . Need to know would I benefit from doing one at each credit union? Been reading about SSL hack where you pay down to 8% to get a credit boost. But if I did two paid down to 8% on each, then would I be at 16% DTI and not benefit? Would paying both to 4% work ? Would have two benefit me ?

Also I see starting the pledge loan @ 3001 for a 60 month term seems the way to go , would a larger amount ($5000) be more beneficial ? My goal is to get funding from NFCU for a line of credit and/or a unsecured loan ,around June to buyout my partner (15k -30k).

I'm keeping in mind my AAoA which currently is 1 year -

AU 10k 3 years

Joint card 19K 5months

Secured card $300 5 months

Capital one $750 3months ( Dec 9th)

I'm around 730-755 across all 3.

Also plan to get a NFCU CC soon after pledge loan and am considering doing a simultaneous app with Andrew's.

Would adding 4 new accounts in a few days wreck my AAoA and work against my plan ?

Would appreciate some advice on ways to go about this.

Thanks

Re: Secured loans

Anonymous — Sat, 28 Nov 2020 16:53:08 GMT

NFCU has a superior SSL to probably any other lender, due to the prepay factor that allows you to advance the due date

You only need one, so NFCU would be the one to go with

Be aware NFCU is not being too generous with LOC, anymore. While it was easy to get 15k in the past, you'd be rather lucky to get $500 now and then get slow CLIs on it.

A good game plan would be NFCU SSL and NFCU CC now. It builds the internal score/relationship. Then when you need the money, apply for the NFCU Platinum (12 month 0% APR no BT fee) for your financing needs.

Your credit is super young, so certain CUs will probably be your best bet on high limits and low APR

Your AAOA is low and inflated by an AU, so I wouldn't care about dropping it slightly on new accounts now

Re: Secured loans

AllZero — Sat, 28 Nov 2020 16:53:44 GMT

You only want one open installment loan. Any more more than that will be redundant.

Score wise, dollar amount does not matter.

I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant

From SouthJamaica
NFCU SSL

From adrianaesque
Approved NFCU SSL - with detailed steps (May 2020)

Re: Secured loans

Nelsoul — Sat, 28 Nov 2020 22:04:46 GMT

Okay great I was leaning on just the pledge and a CC ...

And the difference between 60 mon vs 36 mon, is only to avoid getting a AAoA hit sooner then later if I decide to do it again. The term itself wouldn't change the credit boost ?

Thanks

Re: Secured loans

AllZero — Sat, 28 Nov 2020 23:07:51 GMT

@Nelsoul wrote:
Okay great I was leaning on just the pledge and a CC ...

And the difference between 60 mon vs 36 mon, is only to avoid getting a AAoA hit sooner then later if I decide to do it again. The term itself wouldn't change the credit boost ?

Thanks

Correct on both counts.

If you have patience, I would recommend the Navy SSL first. Get some payment history with them. Give it at least 3 months before you apply for a card. Hopefully, it will yield an unsecured card approval and decent credit limit.

Re: Secured loans

Nelsoul — Sun, 29 Nov 2020 04:02:06 GMT

Normally I'd have patience , but want to build data points and run a bit of activity through the Navy CC.

I did prequlify for all the cards.

My Transunion is 731 - 3 HP this year, 12% utilization on 30K( about to transfer $2000) should be around 5%.

That's nothing stellar, I was assuming that'll be enough to get a card in 3 weeks or so but 3 months

Re: Secured loans

Nelsoul — Sun, 29 Nov 2020 04:33:33 GMT

Waiting for documents.

$3001@60 months.

Was just reading about someone's new balance posting vs total loan amount after paying down to 8%.

What's that about ?

Re: Secured loans

AllZero — Sun, 29 Nov 2020 04:51:08 GMT

@Nelsoul wrote:
Normally I'd have patience , but want to build data points and run a bit of activity through the Navy CC.

I did prequlify for all the cards.

My Transunion is 731 - 3 HP this year, 12% utilization on 30K( about to transfer $2000) should be around 5%.
That's nothing stellar, I was assuming that'll be enough to get a card in 3 weeks or so but 3 months

The online prequalify site might not be accurate. Calling in to CSR may be better.

Not knowing your complete profile, besides scores, CUs factor in your income and DTI Debt To Income.

You may or not be approved now. You may or may not get a decent credit limit. I'm just recommending steps to increase your odds.

I would recommend doing a little bit more research before you apply.

For your reading pleasure.

https://ficoforums.myfico.com/t5/Credit-Cards/Navy-Federal-CU-New-Accountholder-Data-Points/m-p/5982535

Navy Federal Thread for CLI and Additional Cards

Re: Secured loans

AllZero — Sun, 29 Nov 2020 04:54:18 GMT

@Nelsoul wrote:
Waiting for documents.
$3001@60 months.

Was just reading about someone's new balance posting vs total loan amount after paying down to 8%.

What's that about ?

Can you clarify the question?

Re: Secured loans

Nelsoul — Sun, 29 Nov 2020 11:32:19 GMT

@AllZero

The online prequalify site might not be accurate. Calling in to CSR may be better.

Not knowing your complete profile, besides scores, CUs factor in your income and DTI Debt To Income.

You may or not be approved now. You may or may not get a decent credit limit. I'm just recommending steps to increase your odds.

I would recommend doing a little bit more research before you apply.

For your reading pleasure.

https://ficoforums.myfico.com/t5/Credit-Cards/Navy-Federal-CU-New-Accountholder-Data-Points/m-p/5982...

Navy Federal Thread for CLI and Additional Cards

Of course appreciate the feedback

Re: Secured loans

Nelsoul — Sun, 29 Nov 2020 11:50:59 GMT

One member had posted that after making his first 92% payment, instead of the $3001 showing up on his credit report, the new loan amount posted.

How do I avoid that ?

Or Maybe I'm not understanding correctly, could have been just a fluke? i haven't found anyone else saying that..

Just got approved and funds are available again ! Want to make sure before moving forward because the more I read get a little confused-

I'm paying this down to 8% (2760.92)immediately, then I'm setting up a auto pay every 3 months to keep the loan active .

Re: Secured loans

AllZero — Sun, 29 Nov 2020 18:26:01 GMT

@Nelsoul wrote:
One member had posted that after making his first 92% payment, instead of the $3001 showing up on his credit report, the new loan amount posted.
How do I avoid that ?
Or Maybe I'm not understanding correctly, could have been just a fluke? i haven't found anyone else saying that..

Just got approved and funds are available again ! Want to make sure before moving forward because the more I read get a little confused-

I'm paying this down to 8% (2760.92)immediately, then I'm setting up a auto pay every 3 months to keep the loan active .

Timing? I don't know if NFCU does all the SSL reporting at the end of the month or not.

Ideally, you do not want it to report with 100% balance to loan utilization because you won't get that instant score gratification.

If it does, just wait until the next report cycle for the score boost. It should not be a major negative impact until then.