topic Re: SSL Question in Understanding FICO® Scoring

SSL Question

ChiTownTony — Fri, 17 Jul 2020 09:51:36 GMT

Hi,

In January of 2020 I opened two credit cards (Visa, Discover). I lost a little over 50 points on my credit rating. What could I expect to lose if I opened an SSL with NFCU, ballpark? I'm thinking of doing this to add an installment loan to my profile in Jan/Feb of 2021 when my current inquirys fall off. I have a thin file. 3 revovlers and no installments.

Thanks.

Re: SSL Question

Iusedtolurk — Fri, 17 Jul 2020 13:57:56 GMT

@ChiTownTony wrote:
Hi,

In January of 2020 I opened two credit cards (Visa, Discover). I lost a little over 50 points on my credit rating. What could I expect to lose if I opened an SSL with NFCU, ballpark? I'm thinking of doing this to add an installment loan to my profile in Jan/Feb of 2021 when my current inquirys fall off. I have a thin file. 3 revovlers and no installments.

Thanks.

Pretty big hit for adding 2 credit cards but you should have picked up a few points since you have been paying on them since Jan.

Having 3 cards it's good to carry a zero balance on 2 of them and let 1 carry a small balance that will get you maximum points added to your score. Also the ssl will add some points due to you adding an open intallment loan.

No one can really say how many points would be gained because it's specific to your profile and doing the all zero except one move and credit mix enhancement along with all the moving parts such as aging, new inquiry/no new inquiry, where your scores are now, addition of a new account, age of oldest account, age of youngest account and some other variables.

You get the few points you lose from new inquiries (Jn 2020) after they age a year but they don't drop off until they are 2 years old if you looking for them to drop off in Jan of 2021 (they drop Jan 2022).

Re: SSL Question

ChiTownTony — Fri, 17 Jul 2020 14:19:37 GMT

Yes, I do the AZEO. And what I meant by dropping off is I'll get the points back after 12 months. I'm already over 800 on two of the three FICO 8 scores. I just don't want to open the SSL if I'm going to lose another 50 points or so.

Re: SSL Question

AllZero — Fri, 17 Jul 2020 15:45:56 GMT

If no open installment loan, doing the SSL technique could gain 15-30 points.

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

Re: SSL Question

ChiTownTony — Fri, 17 Jul 2020 15:50:36 GMT

@AllZero wrote:
If no open installment loan, doing the SSL technique could gain 15-30 points.

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

Thanks my friend.

Re: SSL Question

AllZero — Fri, 17 Jul 2020 15:53:47 GMT

@ChiTownTony wrote:
@AllZero wrote:
If no open installment loan, doing the SSL technique could gain 15-30 points.

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
Thanks my friend.

You are welcome. Good luck.

Re: SSL Question

SouthJamaica — Sat, 18 Jul 2020 04:10:48 GMT

@ChiTownTony wrote:
Hi,

In January of 2020 I opened two credit cards (Visa, Discover). I lost a little over 50 points on my credit rating. What could I expect to lose if I opened an SSL with NFCU, ballpark? I'm thinking of doing this to add an installment loan to my profile in Jan/Feb of 2021 when my current inquirys fall off. I have a thin file. 3 revovlers and no installments.

Thanks.

If you take out an SSL with NFCU, then pay it down to 9% of the loan amount, you'll experience a good score gain, not a loss.

Re: SSL Question

Anonymous — Mon, 20 Jul 2020 01:24:33 GMT

No you are not gonna experience that loss with a SSL. That loss came from scorecard reassignment to a new account scorecard, and you being in a thin profile is why it was so severe.

SSL’s do not cause scorecard assignment and in any case you’re already been reassigned and are therefore under penalty, so whether you open up another card or an SSL, you’re not gonna see that type of penalty again, but the good news is you’ll get those points back when the youngest revolver turns 12 months.

And if you move yourself into a thick profile, you won’t have such severe penalties. 😉 Plus you can achieve your best scores across versions with five revolvers. How many cards do you have now? And no open or closed loans on record?

Re: SSL Question

ChiTownTony — Mon, 20 Jul 2020 13:41:39 GMT

@Anonymous wrote:
No you are not gonna experience that loss with a SSL. That loss came from scorecard reassignment to a new account scorecard, and you being in a thin profile is why it was so severe.

SSL’s do not cause scorecard assignment and in any case you’re already been reassigned and are therefore under penalty, so whether you open up another card or an SSL, you’re not gonna see that type of penalty again, but the good news is you’ll get those points back when the youngest revolver turns 12 months.

And if you move yourself into a thick profile, you won’t have such severe penalties. 😉 Plus you can achieve your best scores across versions with five revolvers. How many cards do you have now? And no open or closed loans on record?

I have 3 revolvers and one closed auto loan from many years ago still showing up.

Re: SSL Question

Anonymous — Mon, 20 Jul 2020 15:24:53 GMT

@ChiTownTony Your best course of action scorewise is to go ahead and do the SSL now and then in January grab 2 more cards and lock yourself in the garden permanently, until/unless you actually need something else in the future.

So I would recommend spending now until January picking out the 2 new cards that fit your spend best and will fit into your finances the best long-term. JMHO.

Re: SSL Question

ChiTownTony — Tue, 21 Jul 2020 10:16:49 GMT

@Anonymous wrote:
@ChiTownTony Your best course of action scorewise is to go ahead and do the SSL now and then in January grab 2 more cards and lock yourself in the garden permanently, until/unless you actually need something else in the future.

So I would recommend spending now until January picking out the 2 new cards that fit your spend best and will fit into your finances the best long-term. JMHO.

Thank you. I will make a move the first of August for the SSL and see what happens. Thanks for the advice.

Re: SSL Question

Anonymous — Tue, 21 Jul 2020 11:52:41 GMT

Actually, the first is the one day I don’t recommend applying. Reason is it makes discriminating score changes difficult because aging points come on the first.

I mean you can, but then its harder to attribute changes to their causes.

Re: SSL Question

ChiTownTony — Tue, 21 Jul 2020 13:45:49 GMT

@Anonymous wrote:
Actually, the first is the one day I don’t recommend applying. Reason is it makes discriminating score changes difficult because aging points come on the first.

I mean you can, but then its harder to attribute changes to their causes.

I never knew that!! So when during the month do you recommend?

Re: SSL Question

Iusedtolurk — Tue, 21 Jul 2020 13:49:10 GMT

@Anonymous wrote:
Actually, the first is the one day I don’t recommend applying. Reason is it makes discriminating score changes difficult because aging points come on the first.

I mean you can, but then its harder to attribute changes to their causes.

Good point @Anonymous you want any variable that has an affect on credit point movement to be as isolated as possible and not a part of several variables occuring at the same time.

Re: SSL Question

RadioRob — Tue, 21 Jul 2020 16:32:01 GMT

The first of the month is typically when automatic things happen. However I personally would sit on it a week or two. I have a bunch of scores that report in the first week of the month, so I would not want those potentially reflecting in my comparison also.

Re: SSL Question

Anonymous — Tue, 21 Jul 2020 19:33:39 GMT

It really doesn’t matter any other day, just stay a couple days away from the first so that you can discriminate the changes. Plus considering everything is considered opened on the first day of the month you open it, if you go ahead and do it this month that will be one month’s more of age you will have so maybe before the end of this month? Or if you got a wait till next month at least a couple days after the first.

Re: SSL Question

ChiTownTony — Wed, 22 Jul 2020 11:17:47 GMT

Thanks for all the advice.

Re: SSL Question

Anonymous — Wed, 22 Jul 2020 17:36:44 GMT

My pleasure and look forward to your data points and success!