topic Re: Navy or Penfed still work for SSL technique? in Personal Finance

Navy or Penfed still work for SSL technique?

Upbeatstreet — Fri, 20 Jan 2023 23:44:58 GMT

I’d like to open an SSL (see thread below), I couldn’t find any very recent examples searching the forums - does anyone know if this technique still works at PenFed or NFCU?

https://ficoforums.myfico.com/t5/Personal-Finance/SSL-Share-Secured-Loan-Technique/td-p/6371294

Re: Navy or Penfed still work for SSL technique?

ZackAttack — Fri, 20 Jan 2023 23:53:43 GMT

Have you tried searching on NFCU or PenFed website for any more info?

If you check on NFCU https://www.navyfederal.org/loans-cards/personal-loans.html it is called "Savings Secure Loan" on the details of what you are looking for.

Re: Navy or Penfed still work for SSL technique?

FireMedic1 — Sat, 21 Jan 2023 00:47:12 GMT

Welcome @Upbeatstreet

Yes it still works. Heres the NFCU link from the your link. @SouthJamaica laid it out perfectly. I had one till I got an auto loan. And in the old days was my first SSL was with Alliant. Then they caught on to us and nerfed it.

Re: Navy or Penfed still work for SSL technique?

Upbeatstreet — Sat, 21 Jan 2023 00:04:22 GMT

@ZackAttack There's a lot about this SSL technique that banks don't put online, that can only be found out from testing. (For instance PenFed doesn't list SSL on their website even though they do still offer it).

So I'm hoping to hear if anyone has tried this SSL technique recently? Thanks

Re: Navy or Penfed still work for SSL technique?

GZG — Sat, 21 Jan 2023 00:13:38 GMT

@Upbeatstreet wrote:
I’d like to open an SSL (see thread below), I couldn’t find any very recent examples searching the forums - does anyone know if this technique still works at PenFed or NFCU?
https://ficoforums.myfico.com/t5/Personal-Finance/SSL-Share-Secured-Loan-Technique/td-p/6371294

it definitely still works at NFCU, and there's been DPs with it also working with PenFed as well.

Ideally with NFCU, you do a 5 year SSL for around $3000. Minimum is probably $3001*, but DPs have said to do $3001 or something like $3100 or $3200

Have the money in your savings with NFCU, call them up ask for a 5 year SSL for that $3000 amount, confirm it will be 5 years for that amount and it takes about 24 hours.

Pay it off to 9% and the due date will be pushed back several years

Re: Navy or Penfed still work for SSL technique?

FireMedic1 — Sat, 21 Jan 2023 00:12:28 GMT

@GZG wrote:
@Upbeatstreet wrote:
I’d like to open an SSL (see thread below), I couldn’t find any very recent examples searching the forums - does anyone know if this technique still works at PenFed or NFCU?
https://ficoforums.myfico.com/t5/Personal-Finance/SSL-Share-Secured-Loan-Technique/td-p/6371294

it definitely still works at NFCU, and there's been DPs with it also working with PenFed as well.

Ideally with NFCU, you do a 5 year SSL for around $3000. Minimum is probably $3000, but DPs have said to do $3001 or something like $3100 or $3200

Have the money in your savings with NFCU, call them up ask for a 5 year SSL for that $3000 amount, confirm it will be 5 years for that amount and it takes about 24 hours.

Pay it off to 9% and the due date will be pushed back several years

Yep over $3001. I paid $1 every other month for activity @Upbeatstreet

Re: Navy or Penfed still work for SSL technique?

Fico82 — Sat, 21 Jan 2023 03:16:10 GMT

I can confirm that ssl is working for me . Currently have one with nfcu. 👌

Re: Navy or Penfed still work for SSL technique?

Upbeatstreet — Tue, 24 Jan 2023 07:38:26 GMT

Based on everyone's helpful responses, I successfully got the NFCU membership (phew!), and I'm setting up the SSL for $3001 60 months, as we speak...

Thanks all for the intel!

Re: Navy or Penfed still work for SSL technique?

Upbeatstreet — Fri, 14 Apr 2023 03:49:55 GMT

Quick update: it worked perfectly, thanks everyone

Re: Navy or Penfed still work for SSL technique?

FireMedic1 — Fri, 14 Apr 2023 22:00:27 GMT

Congrats @Upbeatstreet !

Re: Navy or Penfed still work for SSL technique?

masscredit — Fri, 03 May 2024 20:28:00 GMT

NFCU is mentioned often here. How about PENFED? Both of these were IIB so I figured I wouldn't be able to have a relationship with either lender for the rest of my life. I was reading a post earlier so I decided to sign into each of my accounts to check them out. There is limited access in my NFCU account. I have full access on PENFED so I tried their pre-qualification page for a credit card. That was declined. I then jumped over to their personal loans. I put in $3500. Not only was I approved for that, they approved me for $5200. The rates range from 14.49 - 15.49% (ouch!@). But... I looks like I have a chance with them. My current SSL is with Andrews CU. I couldn't pay that down without changing the term of the loan. It will be paid off in November. I'll only have a few months with it below 9%. I don't need a loan so I'm planning ahead for what I'll do when this is paid off.

So for personal loans, PENFED doesn't list a SSL on their site. Anyone know if it's still available or if the regular load can be paid down without changing the term of the loan?

Re: Navy or Penfed still work for SSL technique?

FicoMike0 — Sat, 04 May 2024 00:53:14 GMT

I just did a ssl at penfed in febuary. They don't advertise it on their webpage. You have to call and ask. First you have to deposit the loan balance in a regular savings account, the one that pays 0.5%. You have to leave it there for at least 30 days. They will do the loan for a minimum of $25 X the term in months. That's $1500 for 60 months. I think they may go as long as 120 months. After the money ages, call them to do the loan. The loaned money shows up in the savings account. One day, balance $1500, the next, $3000, only $1500 withdrawalable. I moved the $1500 to another savings account. Once the loan is set up you can make payments online. It says to call to make a principle only payment, don't do it! That shortens the loan term. Just pay it down online as if it was a normal payment.

It worked fine for me, 30 - 40 point gain.

Re: Navy or Penfed still work for SSL technique?

masscredit — Mon, 02 Sep 2024 19:41:35 GMT

@FicoMike0 I meant to thank you for the detailed info after you posted it. Thanks! I'm getting ready to get an SSL with them. Will be depositing money into my savings account to let it sit for 30 days then I'll contact them for the loan. Is it a HP or SP? I think SSLs tend to be soft.

And when it comes to SSLs, is a higher amount helpful when it comes to showing experience with a larger loan? Like how you are more likely to get a card with a $20K limit if you have other cards in that range. I'll mainly be happy with continuing the scoring benefits of having a loan under 9% (my other one will be paid off in Nov) but I'll take any other benefits too.

Re: Navy or Penfed still work for SSL technique?

Horseshoez — Mon, 02 Sep 2024 20:10:02 GMT

@masscredit wrote:
@FicoMike0 I meant to thank you for the detailed info after you posted it. Thanks! I'm getting ready to get an SSL with them. Will be depositing money into my savings account to let it sit for 30 days then I'll contact them for the loan. Is it a HP or SP? I think SSLs tend to be soft.

And when it comes to SSLs, is a higher amount helpful when it comes to showing experience with a larger loan? Like how you are more likely to get a card with a $20K limit if you have other cards in that range. I'll mainly be happy with continuing the scoring benefits of having a loan under 9% (my other one will be paid off in Nov) but I'll take any other benefits too.

SSLs of $3,000 (some say $3,001 ) has been argued here many times as being the sweet spot; below that there are some duration issues when it comes to the term of the SSL, above that and there is virtually zero benefit.

I haven't used NFCU's SSL, but the one I used from PenFed was a soft pull.

Re: Navy or Penfed still work for SSL technique?

FicoMike0 — Tue, 03 Sep 2024 01:09:05 GMT

I haven't seen any indication that the amount of the loan has any impact on credit score. The amount needs to be enough to get the loan term you want. I've seen the $3001 amount mentioned as the requirement for a 60 month loan with nfcu. Penfed, who doesn't advertise they even do a ssl, has a simple requirement, $25/ month min payment. So with them, the amount is $25 X loan term, in months. $1500 for 60 months, $3000 for 120 months.

A new issue has been reported with penfed, auto early loan forgiveness. Some have reported that penfed has forgiven loans with as much as a $65 balance. Ordinarily, that would be a good thing. With a ssl with a $50 balance and no payment due for several years, not so much. I had planned to set up auto payments of say, $2/month, to pay it on time without effort. This would bring my balance down to $48 two years before the final payment. Since I don't want it canceled due to forgiveness two years early, I'm not doing that. I'll have to check and see if I can set up auto pay to start in about six years.

Re: Navy or Penfed still work for SSL technique?

burrissa — Tue, 03 Sep 2024 02:42:26 GMT

Does the Penfed SSL have to be from the regular savings account or can it be from the premium online savings? The reason I ask is because I just transfered funds from the regular to th premium last week. Does the 30 day countdown start over if I transfer it back to the regular savings?

Re: Navy or Penfed still work for SSL technique?

Horseshoez — Tue, 03 Sep 2024 02:55:08 GMT

@burrissa wrote:
Does the Penfed SSL have to be from the regular savings account or can it be from the premium online savings? The reason I ask is because I just transfered funds from the regular to th premium last week. Does the 30 day countdown start over if I transfer it back to the regular savings?

If memory serves, it is from a Regular savings account. That said, I think you can make a case for the 30 day aging period to start when the money first hit any of your PenFed accounts. Sounds like it is time for you to call their Customer Service and ask. Please let us know what you find out.

Re: Navy or Penfed still work for SSL technique?

Patient957 — Tue, 03 Sep 2024 04:11:36 GMT

The longest SSL term PenFed will do is 142 months. For that term, a loan amount of $3150 comes to exactly $25 per month. The interest rate is 2% or maybe 2.05%, can't remember. The phone rep will help you figure out the numbers for whatever term you want.

Re: Navy or Penfed still work for SSL technique?

masscredit — Tue, 03 Sep 2024 11:38:45 GMT

When people get these loans and stretch them over a long period of time, does the bank rep ask what the purpose is? Or do they know it's "just to have a loan"?

And why do they have the policy of funds have to be in the account for 30 days?

Re: Navy or Penfed still work for SSL technique?

FicoMike0 — Tue, 03 Sep 2024 12:38:14 GMT

Why?, I don't know.

With penfed, the colateral has to be in regular savings for 30 days. She didn't ask me why I wanted the loan.