topic Re: SSL and my Scores in Understanding FICO® Scoring

SSL and my Scores

TheGameofCredit_ — Sat, 05 Sep 2020 22:45:20 GMT

Hello credit community,

I started the month off clearing all my debts. Currently sitting 1% utilization

Scores: EXP 732 | EQ 726 | TU 733

Total Accounts: 5

Youngest Account: 7 Months

Average age of Credit: 11 Months

Total Credit: $4,650

I will be opening up a SSL to get a loan on my credit report through NFCU.

How long will it be before I see results after paying off $2800 of the loan?

The goal here is bigger CLs and to get a car by next September.
Thanks for reading

- drew

Re: SSL and my Scores

Anonymous — Sat, 05 Sep 2020 23:43:25 GMT

As soon as it's on your report with the low balance you'll see the result

Re: SSL and my Scores

SouthJamaica — Sun, 06 Sep 2020 02:08:58 GMT

@TheGameofCredit_ wrote:
Hello credit community,

I started the month off clearing all my debts. Currently sitting 1% utilization
Scores: EXP 732 | EQ 726 | TU 733
Total Accounts: 5
Youngest Account: 7 Months
Average age of Credit: 11 Months
Total Credit: $4,650

I will be opening up a SSL to get a loan on my credit report through NFCU.

How long will it be before I see results after paying off $2800 of the loan?

The goal here is bigger CLs and to get a car by next September.
Thanks for reading
- drew

Once the loan is paid down to 9% or less of the original loan amount, you would typically see a gain of 25-30 points in your FICO 8 scores.

Re: SSL and my Scores

rbentley — Sun, 06 Sep 2020 14:06:46 GMT

I recently did this having taken out a $3,100 SSL from NFCU around July 1st of this year. The next day, I paid it down to 8% although my first payment was shown as not due until August 24th. It did not report to any of the bureau's until August 2nd.

In my case there was approximately a 30 day wait between taking out the loan and the reporting to the bureau's. I did get a 35-point increase immediately on its reporting. I don't know if that if that is typical or just my experience. YMMV.

Re: SSL and my Scores

Credit4Growth — Sun, 06 Sep 2020 22:00:24 GMT

@rbentley

The SSL usually reports at the end of the month, the last day. Then the CRA will update a few days later. If you have paid down your SLL by then below 9%... when the CRA's update you will see a point gain if this is your only loan.

Re: SSL and my Scores

SouthJamaica — Sun, 06 Sep 2020 22:05:22 GMT

@rbentley wrote:
I recently did this having taken out a $3,100 SSL from NFCU around July 1st of this year. The next day, I paid it down to 8% although my first payment was shown as not due until August 24th. It did not report to any of the bureau's until August 2nd.
In my case there was approximately a 30 day wait between taking out the loan and the reporting to the bureau's. I did get a 35-point increase immediately on its reporting. I don't know if that if that is typical or just my experience. YMMV.

There's nothing magical about the 30 days. It took that long just because of when you happened to take out the loan. Under another scenario it could have reported within a couple of days.

As @Credit4Growth accurately points out, a few days into the month NFCU reports the balance as of the end of the previous month. If you had taken out the loan and paid it down on, let's say the 29th day of the month, it might have reported within 3 or 4 days.

Re: SSL and my Scores

Credit4Growth — Sun, 06 Sep 2020 23:45:43 GMT

@TheGameofCredit_

@rbentley

@SouthJamaica is 100% correct. 3 years ago I read SouthJamica's post on SSL. Navy post st the end of month. I intentionally app for cards then later my SSL on the 24th of the month. On the 27th or 29th I paid my SSL down below 9% to about 8%. The CRA's updated my reports a few days into the new month and I had my Fico point.

Those whom have done the research have done a tremendous job for which we can benefit from.

I just closed my SSL in lue of paying off my student loans (they have approximately the same monthly payment and i wished to lower my DTI. I am thinking long term profile benefits, I have two young ones at home below the age of 6. The SL's are my oldest account and I would like then to remain on the reports for longer than 12 years for me - it was a tough decision)

Make your plans accordingly and follow the lead of other as long as it fit your road map to your goals. The hard work is in actually making your goals and road map. Everyone else on these forums, my self included can only point you in the right direction. ✌