topic Re: PenFed SSL (Shared Secured loan) in Understanding FICO® Scoring

PenFed SSL (Shared Secured loan)

SlimShady66 — Sat, 06 Jan 2024 21:08:42 GMT

So it has been a while since I have been active on this board, 2019 or so. So I look like a newb.

Soon I will be finishing up my mortgage loan. Managed to get it paid off in 58 months. It will be paid off in June 2024.

With that being said, I am considering joining PenFed and getting a shared secured installment loan in March timeframe as I have no other active installment loans once my mortgage is paid off.

I wouldn't think I would have trouble with PenFeb denying me membership. Fico 8 score ar EX 847 / TU 850 / EQ 850.

Does anyone have the low done on how much is the requirement for a 5-year and a 10-year SSL?

Meaning the amount needed to qualify for those timelines?

What is the going APR for the loan, approximate, not exact?

I know I have to apply, open a savings account, deposit the amount of funds required for the loan plus PenFed CU joining fee, and wait 30 or more days before applying for the loan.

Just looking for the particulars from anyone who has recently applied and was approved and is aware of the options required for specific terms.

The last time I employed this technique was with Alliant which worked out great, but I understand they no longer support SSL. Although a regular unsecured loan can act the same way, but would be paying more interest and they hit you with a Hard Inquiry, with PenFed as I understand it, is a soft inquiry.

NFCU is not an option in my case.

Thanks in advance.

Re: PenFed SSL (Shared Secured loan)

Horseshoez — Sat, 06 Jan 2024 21:30:46 GMT

I opened up a $3,000 SSL with PenFed back in 2021 and if I recall correctly, I was offered term as long as 60 months (I chose 36); I have no idea if this is still the case. What I'd recommend is for you to give them a call; the associate I talked with three years ago was very knowledgeable regarding their SSL offerings and answered all of my questions within a few minutes.

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Sat, 06 Jan 2024 21:39:49 GMT

Thanks @Horseshoez

Yes, I plan on doing just that, I just like to be as knowledgeable as possible going into that conversation as possible.

Thanks for your info.

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Sat, 06 Jan 2024 21:56:32 GMT

I was reading a post more recent where $3000 would get you the option for a 10-year term. The post indicated PenFed criteria was $25 or more monthly payments. But maybe this all depends on the qualifications, new or existing member, etc

Not to sidetrack but in a similar instance, I have had the Fidelity Credit card for some time. But I didn't do most of my banking with them. I had to apply for a credit limit increase. A few years after that, I switched from Schwab to Fidelity, opening a Brokerage, two CMA accounts, and probably most importantly direct deposit shifted to them. Then all of a sudden automatic credit line increase. So doing business with a bank or brokerage firm does have its benefits is my take.

Re: PenFed SSL (Shared Secured loan)

Thomas_Thumb — Sat, 06 Jan 2024 23:59:08 GMT

@SlimShady66 wrote:
So it has been a while since I have been active on this board, 2019 or so. So I look like a newb.

Soon I will be finishing up my mortgage loan. Managed to get it paid off in 58 months. It will be paid off in June 2024.
With that being said, I am considering joining PenFed and getting a shared secured installment loan in March timeframe as I have no other active installment loans once my mortgage is paid off.

I wouldn't think I would have trouble with PenFeb denying me membership. Fico 8 score ar EX 847 / TU 850 / EQ 850.

Why get an SSL at all? Seems like a hassle for no real value add given your scores. BTW- when I paid off my only loan, a mortgage, my scores did drop from 850. However, 2 months later my EX Fico 8 was up to 848 and my EX Fico 9 was 849. Within 6 months EX Fico 9 regained 850. For whatever reason TU Fico 8 is stuck at 837. Those scores and EQ bankcard 8 are free to me. I would need to pay for a 3B to get the other scores.

Side note: The SSL won't help much, if any, for the older "mortgage" Ficos. Those algorithms don't penalize for lack of an open loan the way F8/F9 do

Are you wanting an SSL to strive for a Fico8/Fico9 850 six pack?

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Tue, 09 Jan 2024 12:50:05 GMT

Hey there @Thomas_Thumb

You know you have a valid point. No, I do not need to take out an SSL and perhaps will take the "wait and see" approach.

I will have 10 AoAA in 3 months. Pay all my cards before they bill typically, but never pay interest. I would expect to lose 32 points give or take a few once mortgage credit reports are paid. Currently, I only monitor Fico 8 for free as well through EX from an Experian account, TU from credit cards, and EQ from logging into Myfico, assuming that is a real Fico8 number, which it appears to be and is current.

It is just the thought of maintaining an active installment loan that makes sense to me. Not that I should employ the method right away. I could wait for a year and see what happens. Not chasing the Fico8 850 on all three. Kinda over that at this point.

Would still consider, after running the numbers and figuring out the total cost, as funds would not be tied up for long and I have no plans for a real installment loan down the road. Of course, one never really knows about tomorrow. Maybe FED rates will drop election year beginning in June timeframe, which might make it very slightly cheaper. However, if I do it, plan to have it for the longest period I can get.

Have time to think about it, as I wouldn't execute till March timeframe.

Re: PenFed SSL (Shared Secured loan)

Thomas_Thumb — Tue, 09 Jan 2024 15:44:57 GMT

@SlimShady66

Where do I go on MyFico to gain free access to EQ Fico 8? The EQ version I have thru Citi is Bankcard 8.

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Tue, 09 Jan 2024 18:36:05 GMT

Re: PenFed SSL (Shared Secured loan)

Thomas_Thumb — Tue, 09 Jan 2024 22:55:20 GMT

Thanks. My EQ Fico 8 appears stuck at 837 same as TU. Utilization was 1% so it looks like a score boost would require reducing # cards reporting balances. EX does not appear concerned with # reporting balances, just utilization levels. Thus, the ability to reach 850 on EX with 4 of 6 cards having balances.

Re: PenFed SSL (Shared Secured loan)

GZG — Tue, 09 Jan 2024 23:01:48 GMT

@Thomas_Thumb wrote:
@SlimShady66

Where do I go on MyFico to gain free access to EQ Fico 8? The EQ version I have thru Citi is Bankcard 8.

https://www.myfico.com/products/fico-free-plan-b

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Wed, 10 Jan 2024 01:17:11 GMT

Sounds like you have a good idea about the difference in your scores.

EX has always lagged between the three on mie, but I just don't care anymore. lol

Re: PenFed SSL (Shared Secured loan)

Thomas_Thumb — Sun, 14 Jan 2024 06:38:57 GMT

@SlimShady66 wrote:
Sounds like you have a good idea about the difference in your scores.
EX has always lagged between the three on mie, but I just don't care anymore. lol

That's the spirit! I don't stress over scores and enjoy watching them move around now that I have no open loans. It allows me to observe cause/effect responses that were previously muted.

Btw - my TU Fico 8 reported at 844 as of a 12/17/23 update thru Discover . I guess the 837 plateau on TU was not a real ceiling - still had 2, possibly 3, cards reporting balances.

Now that I have access to EQ it will be mildly interesting to see how that score fluctuates.

Re: PenFed SSL (Shared Secured loan)

Horseshoez — Sun, 14 Jan 2024 14:06:00 GMT

@Thomas_Thumb wrote:
Btw - my TU Fico 8 reported at 844 as of a 12/17/23 update thru Discover . I guess the 837 plateau on TU was not a real ceiling - still had 2, possibly 3, cards reporting balances.

Just one datapoint, my peak FICO-8 scores came three months after my discharged Chapter 13 fell off my reports back in 2022:

850 - EQ
840 - EX
843 - TU

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Mon, 15 Jan 2024 02:01:34 GMT

I can add very little with fluctuations.

Even when my only installment load was at 50% utilization, my Fico 8 scores are as follows

EX - 837 to 847 Normal range (Figure when small balances on two cards reports and no balance on any cards score is in lower range)

EQ - 850 (Never fluctuates that I have seen under normal circumstances)

TU - 850 (Never fluctuates that I have seen under normal circumstances)

Exceptions:

- There were instances where I took advantage of 11 months of zero interest on one of my cards anywhere between 25% to 40% utilization. I can validate this affected EX in the 814 range and then recover after 4 or 5 months which was generally the timeframe to pay the balance off.

- Additionally, there was a mortgage refinance back in Sep 2020 which dropped EX down to 807 initially and recovered to 838 in May 2021.

- There was a mistake on a mortgage transfer where EX did not report the new tradeline and the older mortgage tradeline closed for six months on. This initially dropped the score to 825 then down to 807-816 with over 20% utilization on one of my CC's.

Odd to see EQ and TU at 850 and EX at 816.

Regardless, EX has always been the lower which I assume has to do with either EX calculations or the credit report account details which are slightly different than TU and EQ. I have never seen it hit 850. The top end is 847 with one card reporting a $50 to$100 balance. Makes me feel my score automatically attenuated. Lol.

Anyway, it has been long enough for me to get a feel for cause and effect. But not reel super accurate data points.

Re: PenFed SSL (Shared Secured loan)

Thomas_Thumb — Sun, 21 Jan 2024 22:28:09 GMT

Well, now that I signed up for EQ, I get alerts. I got one that my balance decreased by $843 (card paid off) and Fico 8 score skyrocketed to 841 from 837, lol.

I let all cards report balances naturally. Guess I'll be seeing some fluctuations now as balances get reported and statement balances are then PIF. That's the punishment for no open loan 🤨

Re: PenFed SSL (Shared Secured loan)

SouthJamaica — Sun, 21 Jan 2024 05:46:44 GMT

@Thomas_Thumb wrote:
Well, now that I signed up for EQ, I get alerts. I got one that my balance decreased by $843 (card paid off) and Fico 8 score skyrocketed to 840 from 837, lol.

I let all cards report balances naturally. Guess I'll be seeing some fluctuations now as balances get reported and statement balances are then PIF. That's the punishment for no open loan 🤨

Having an open loan would not change the fluctuations up and down from revolving utilization changes.

Re: PenFed SSL (Shared Secured loan)

Thomas_Thumb — Sun, 21 Jan 2024 23:05:52 GMT

My monthly mortgage with lengthy payment history did stabalize my scores - I have the data. Even my EQ bankcard Fico 8 was more stable and that score had no buffer.

Actually, my monthly EX Fico 8 scores never fluctuated from 3/2015 to 11/2020 - always at 850. My monthly TU score dropped to 845 once and 848 a couple times. Otherwise it was at 850 as well. My 14 EQ Fico 8 scores from 3 B reports during the same time period were also 850.

During the above time period I had a card report 78% utilization with no change in any Fico 8 scores. There were multiple other times a card reported over 50% UT with no drop in score. Now that the mortgage has closed, instability due to revolving account activity - utilization changes moreso than accounts with balances - has increased. Elevated card utilizations used to be meh.

I don't know whether loans such as an SSL or other shorter duration installments such as an Auto loan help stability. My 15 year mortgage did.

Re: PenFed SSL (Shared Secured loan)

SouthJamaica — Mon, 22 Jan 2024 03:55:31 GMT

@Thomas_Thumb wrote:
My monthly mortgage with lengthy payment history did stabalize my scores - I have the data. Even my EQ bankcard Fico 8 was more stable and that score had no buffer.

Actually, my monthly EX Fico 8 scores never fluctuated from 3/2015 to 11/2020 - always at 850. My monthly TU score dropped to 845 once and 848 a couple times. Otherwise it was at 850 as well. My 14 EQ Fico 8 scores from 3 B reports during the same time period were also 850.

During the above time period I had a card report 78% utilization with no change in any Fico 8 scores. There were multiple other times a card reported over 50% UT with no drop in score. Now that the mortgage has closed, instability due to revolving account activity - utilization changes moreso than accounts with balances - has increased. Elevated card utilizations used to be meh.

I don't know whether loans such as an SSL or other shorter duration installments such as an Auto loan help stability. My 15 year mortgage did.

My loan experience was only with SSL's and other shorter term loans, and they had no effect on the slight ups and downs from slight changes in utilization.

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Fri, 26 Jan 2024 02:04:53 GMT

I had the same experience with the SSL as @Thomas_Thumb had with his mortgage. It bolstered my Fico8 and give it stability once you're past the "new tradeline" phase, which really isn't that long. This is with the tradleline UTI below 9%.

From my reading here years ago and my experience in doing it, Fico8 doesn't seem to distiguish from different installment loan types.

With that said, CC was almost always between 0% to 3% UTI, and I only have like five of them. So maybe there was no reason for my scores to fluctuate.

I have no data, just the rusty memory to go by here.

Re: PenFed SSL (Shared Secured loan)

SlimShady66 — Fri, 26 Jan 2024 03:25:00 GMT

Digging through my NAS found compelling evidence from Experian FICO8 report from Nov and Dec 2015

SSL reported 100% UTI new tradeline on Nov 2015 $500 balance FICO8 score 787

SSL reported 9% UTI on Dec 2015 $45 balance FICO8 score 816

I had four new trade lines that year, and the SSL was brand new, and still bounced score 30 points.

So maybe theoretically, if you have no active installment and your score is, say FICO8 825 and we might consider the a new SSL tradline paid down to 9% worth 30 points. Theoretically, it would bump you to Fico8 850 and perhaps give additional hard buffer resistant to CC fluctuations UTI fuctuations.

Kind of a hard 850+, but you don't see the + in the score.

Just a theory.