topic Re: Credit builder loan that can be paid off 95% immediately in Personal Finance

Credit builder loan that can be paid off 95% immediately

folks19 — Wed, 22 Jul 2020 04:23:31 GMT

I currently have a self credit builder loan, which I opened to add installment credit to my report.

The thing is that self doesn't let you pay early. (If you pay early, it just shortens the term of the loan, and you still must make the minimum payment next month.) This is a problem because the high unpaid balance lowers my score. And also, the time when a loan helps the most is when it's almost paid off but not fully paid. With self, that period of time will only last about a month or two.

So I'm now looking for a new credit building loan that I can open today, pay it down TODAY to a very small amount, and pay the remainder when the loan term is about to finish.

(For example:

I take out a loan of 1200 today, with a 50 monthly payment for 24 months. I then pay 2350 immediately, and 23 months later, I pay the remaining 50.

By doing that, I enjoy 2 years of having an open loan on my report but with less than 5% utilization.)

Does anybody have any suggestions?

As a side note, I don't understand why self won't give this option, as their purpose is to help build credit, but without the option of prepayment, you get stuck with a high balance for a long time.

I also want to mention that I do NOT plan to close my self loan, but rather, I'll leave it open for now. At least as of now. Thank god I only chose the 12 month option.

Re: Credit builder loan that can be paid off 95% immediately

Anonymous — Wed, 22 Jul 2020 04:32:50 GMT

NFCU SSL

Alliant Personal Loan

Re: Credit builder loan that can be paid off 95% immediately

AllZero — Wed, 22 Jul 2020 04:36:52 GMT

Suggestion? Stick with what you have until your term ends.

I would only recommend a 5+ year SSL if available to you.

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

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.

Re: Credit builder loan that can be paid off 95% immediately

folks19 — Wed, 22 Jul 2020 04:42:37 GMT

Thank you for the suggestions. Although, I don't think I'm eligible to join NFCU, but I'll check out the other ones.

Re: Credit builder loan that can be paid off 95% immediately

Anonymous — Wed, 22 Jul 2020 05:20:43 GMT

US Bank personal loans work too I think

Re: Credit builder loan that can be paid off 95% immediately

SouthJamaica — Sun, 28 Mar 2021 16:06:27 GMT

Lightstream personal loans also work. When you make a prepayment they give you the option of lowering your monthly payment, which would keep the term of the loan intact.

Update 3/28/21 After the Lightstream loan got down to a $1000 balance, it stopped giving me that option.

Re: Credit builder loan that can be paid off 95% immediately

CH-7-Mission-Accomplished — Fri, 24 Jul 2020 03:35:47 GMT

@Anonymous wrote:
NFCU SSL

Alliant Personal Loan

This also works with Alliant auto loans. I took out a car loan in January 2019 but have paid it down to 5K. My next payment due is years from now. Also, my SO had a loan from Nissan on a used Nissan Leaf, and they do the same thing. Pay ahead and they push out the next due date for as long as you have pre-paid.

Re: Credit builder loan that can be paid off 95% immediately

CH-7-Mission-Accomplished — Fri, 24 Jul 2020 03:38:22 GMT

@AllZero wrote:
Suggestion? Stick with what you have until your term ends.

I would only recommend a 5+ year SSL if available to you.

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

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.

is SSFCU Security Service Federal CU? There are many CU's that have the same acronyms, so that's why I ask. Thanks!

Re: Credit builder loan that can be paid off 95% immediately

AllZero — Fri, 24 Jul 2020 03:50:31 GMT

@CH-7-Mission-Accomplished wrote:
@AllZero wrote:
Suggestion? Stick with what you have until your term ends.

I would only recommend a 5+ year SSL if available to you.

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

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.

is SSFCU Security Service Federal CU? There are many CU's that have the same acronyms, so that's why I ask. Thanks!

You are correct, it is.

Re: Credit builder loan that can be paid off 95% immediately

Anonymous — Sun, 28 Mar 2021 09:13:23 GMT

@Anonymous wrote:
US Bank personal loans work too I think

I think USBank does but the total cost of the loan is higher with them than w a CU if I read it correctly at their website. I think there's a monthly fee or something. Just double check the total cost of the bank loan versus at a CU.

Even if you're not a member of NFCU or Alliant and can't find a way to join, know many CU's offer an SSL and you likely can join at least a good local CU. 🙏🏻

Re: Credit builder loan that can be paid off 95% immediately

Horseshoez — Sun, 28 Mar 2021 15:16:06 GMT

I'm going to open a "Share Loan" from PenFed once my money currently on deposit ages to at least 30 days. My understanding from my conversation with one of their associates is one can front-end the loan payments (thus reducing the minimum monthly payment) and not shorten the duration of the term. I'll be able to confirm this in a few weeks, but I'm hoping others here have first hand experience with a PenFed Share Loan.

Re: Credit builder loan that can be paid off 95% immediately

Remedios — Sun, 28 Mar 2021 15:30:54 GMT

@Anonymous wrote:
US Bank personal loans work too I think

Nope

Re: Credit builder loan that can be paid off 95% immediately

Anonymous — Sun, 28 Mar 2021 17:55:34 GMT

@Remedios wrote:
@Anonymous wrote:
US Bank personal loans work too I think
Nope

@Remedios I stand corrected then. Do they move the maturity date forward? I thought I had read somewhere that members used them and it worked. That's why I said I think. Thank you for correcting me.

Re: Credit builder loan that can be paid off 95% immediately

Remedios — Sun, 28 Mar 2021 19:17:43 GMT

Mine doesn't, it's paid down to 50% after only a year (48 month term), next payment due in two weeks.

I do not know if that's new or not, but that's my personal experience with their PLs

Re: Credit builder loan that can be paid off 95% immediately

Anonymous — Mon, 29 Mar 2021 01:13:20 GMT

@Remedios wrote:
Mine doesn't, it's paid down to 50% after only a year (48 month term), next payment due in two weeks.
I do not know if that's new or not, but that's my personal experience with their PLs

@Remedios Wow, that's very good to know. I don't know if it's a recent change or not, it may have always been that way, but I do recall a couple threads where I thought somebody had used them.

I may have even linked them in the Primer. I'm gonna have to go check and remove them if so. Thanks for the heads up!

Re: Credit builder loan that can be paid off 95% immediately

folks19 — Tue, 30 Mar 2021 02:57:09 GMT

@Anonymous wrote:
@Anonymous wrote:
US Bank personal loans work too I think
I think USBank does but the total cost of the loan is higher with them than w a CU if I read it correctly at their website. I think there's a monthly fee or something. Just double check the total cost of the bank loan versus at a CU.

Even if you're not a member of NFCU or Alliant and can't find a way to join, know many CU's offer an SSL and you likely can join at least a good local CU. 🙏🏻

@Anonymous I still didn't find any CU that offers this type of loan since I posted this thread 8 months ago! It's doesn't seem like a product that any topical CU just offers.

Re: Credit builder loan that can be paid off 95% immediately

CH-7-Mission-Accomplished — Tue, 30 Mar 2021 03:03:59 GMT

@folks19 wrote:
@Anonymous wrote:
@Anonymous wrote:
US Bank personal loans work too I think
I think USBank does but the total cost of the loan is higher with them than w a CU if I read it correctly at their website. I think there's a monthly fee or something. Just double check the total cost of the bank loan versus at a CU.

Even if you're not a member of NFCU or Alliant and can't find a way to join, know many CU's offer an SSL and you likely can join at least a good local CU. 🙏🏻
@Anonymous I still didn't find any CU that offers this type of loan since I posted this thread 8 months ago! It's doesn't seem like a product that any topical CU just offers.

I am not on here very much anymore but can I confirm that Navy still does credit builder loans and advances the next payment due date? I want to do a 40k, 15 year credit builder and pay it down to $400. My auto loan pays off in three years and I want a long term backup. Will this work? 15 years with no HP???

Re: Credit builder loan that can be paid off 95% immediately

Anonymous — Tue, 30 Mar 2021 03:14:11 GMT

@CH-7-Mission-Accomplished wrote:
@folks19 wrote:
@Anonymous wrote:
@Anonymous wrote:
US Bank personal loans work too I think
I think USBank does but the total cost of the loan is higher with them than w a CU if I read it correctly at their website. I think there's a monthly fee or something. Just double check the total cost of the bank loan versus at a CU.

Even if you're not a member of NFCU or Alliant and can't find a way to join, know many CU's offer an SSL and you likely can join at least a good local CU. 🙏🏻
@Anonymous I still didn't find any CU that offers this type of loan since I posted this thread 8 months ago! It's doesn't seem like a product that any topical CU just offers.
I am not on here very much anymore but can I confirm that Navy still does credit builder loans and advances the next payment due date? I want to do a 40k, 15 year credit builder and pay it down to $400. My auto loan pays off in three years and I want a long term backup. Will this work? 15 years with no HP???

@CH-7-Mission-Accomplished Navy still works. I don't know about the HP, you might hit the mega thread for it.

Re: Credit builder loan that can be paid off 95% immediately

AllZero — Tue, 30 Mar 2021 03:16:00 GMT

@CH-7-Mission-Accomplished wrote:
I am not on here very much anymore but can I confirm that Navy still does credit builder loans and advances the next payment due date? I want to do a 40k, 15 year credit builder and pay it down to $400. My auto loan pays off in three years and I want a long term backup. Will this work? 15 years with no HP???

@CH-7-Mission-Accomplished From NFCU website, they do $25,000 minimum loan amount for 61 to 84 months and $30,000 minimum loan amount for 85 to 180 months

https://www.navyfederal.org/loans-cards/personal-loans.html

Re: Credit builder loan that can be paid off 95% immediately

CH-7-Mission-Accomplished — Tue, 30 Mar 2021 03:25:03 GMT

@AllZero wrote:
@CH-7-Mission-Accomplished wrote:
I am not on here very much anymore but can I confirm that Navy still does credit builder loans and advances the next payment due date? I want to do a 40k, 15 year credit builder and pay it down to $400. My auto loan pays off in three years and I want a long term backup. Will this work? 15 years with no HP???
@CH-7-Mission-Accomplished From NFCU website, they do $25,000 minimum loan amount for 61 to 84 months and $30,000 minimum loan amount for 85 to 180 months

https://www.navyfederal.org/loans-cards/personal-loans.html

Thanks Mr. Zero. I just wanted to make sure that Navy still advances the next due date. I haven't opened any new accounts in two years, no inquiries, etc., and my goal is to get the highest possibe FICO scores when my BK falls off at 10 years (I'm now at about 7.5 years), so I don't want any new accounts or inquiries after two years prior. I want to be a virgin again (or something like that. Ha!). No seriously I just want to triple check that Navy still advances the next due date. I have a 50K visa with them at 5.99% and a 15K credit line, but I have never done an installment loan with them.