topic NFCU SSL (Pledge Loan) in General Credit Topics

NFCU SSL (Pledge Loan)

Jeffster1 — Thu, 30 Mar 2023 07:02:20 GMT

My original credit builder loan is on its next-to-last payment, and I decided to take out an SSL with NFCU. MANY thanks to all who contributed to the many threads detailing the ins and outs of SSLs.

Maybe I am dumb as a box of rocks but I just want to confirm my path with those who have gone down it before, and perhaps get some constructive criticism and advice.

1. I am transferring $5000 from an external account into my NFCU account.

2. Once the $5000 is in NFCU, I will contact NFCU to apply for a Pledge Loan (SSL).

3. I will ask for a Pledge Loan of $5000 with a 60 month term.

4. Once approved, I will pay back 91.1% of the SSL, leaving a balance of 8.9%. (8.9% of $5000 is $445. I will pay $4555 back right away.)
5. This will advance my next payment due date way down the line.
6. I turn off auto-pay for the loan.

7. I pay attention to the next due date and input it into every calendar I own. I make no payments until that date.

8. Once the $4555 is paid, I am then allowed to withdraw the $4555 from the account securing the loan if I so choose.

I hope I have this right.

Re: NFCU SSL (Pledge Loan)

FireMedic1 — Thu, 30 Mar 2023 10:09:18 GMT

Yep. Only need $3001. I paid $1 every other month. And use it if you have no other loans at all on your reports. You can apply online.

Re: NFCU SSL (Pledge Loan)

SouthJamaica — Thu, 30 Mar 2023 12:00:41 GMT

@Jeffster1 wrote:
My original credit builder loan is on its next-to-last payment, and I decided to take out an SSL with NFCU. MANY thanks to all who contributed to the many threads detailing the ins and outs of SSLs.

Maybe I am dumb as a box of rocks but I just want to confirm my path with those who have gone down it before, and perhaps get some constructive criticism and advice.

1. I am transferring $5000 from an external account into my NFCU account.
2. Once the $5000 is in NFCU, I will contact NFCU to apply for a Pledge Loan (SSL).
3. I will ask for a Pledge Loan of $5000 with a 60 month term.
4. Once approved, I will pay back 91.1% of the SSL, leaving a balance of 8.9%. (8.9% of $5000 is $445. I will pay $4555 back right away.)
5. This will advance my next payment due date way down the line.
6. I turn off auto-pay for the loan.
Doesn't matter. If you leave it on, though, make sure it's for a small amount.
7. I pay attention to the next due date and input it into every calendar I own. I make no payments until that date.
Not necessary. Some of us make tiny payments each month.
8. Once the $4555 is paid, I am then allowed to withdraw the $4555 from the account securing the loan if I so choose.
Yes. In fact I make that payment directly from that savings account.
I hope I have this right.

Re: NFCU SSL (Pledge Loan)

Jeffster1 — Thu, 30 Mar 2023 21:45:29 GMT

@FireMedic1 wrote:
Yep. Only need $3001. I paid $1 every other month. And use it if you have no other loans at all on your reports. You can apply online.

@FireMedic1 Thanks, I was planning on doing $3001 but I read on another thread that some of the NFCU underwriters were balking at 60 months and the suggestion was to do more. I'd be much happier with just doing $3001.

After the installment rebuilder loan expires next month, I will have no loans.

Re: NFCU SSL (Pledge Loan)

Jeffster1 — Thu, 30 Mar 2023 21:48:05 GMT

@SouthJamaica wrote:
@Jeffster1 wrote:
My original credit builder loan is on its next-to-last payment, and I decided to take out an SSL with NFCU. MANY thanks to all who contributed to the many threads detailing the ins and outs of SSLs.

Maybe I am dumb as a box of rocks but I just want to confirm my path with those who have gone down it before, and perhaps get some constructive criticism and advice.

1. I am transferring $5000 from an external account into my NFCU account.
2. Once the $5000 is in NFCU, I will contact NFCU to apply for a Pledge Loan (SSL).
3. I will ask for a Pledge Loan of $5000 with a 60 month term.
4. Once approved, I will pay back 91.1% of the SSL, leaving a balance of 8.9%. (8.9% of $5000 is $445. I will pay $4555 back right away.)
5. This will advance my next payment due date way down the line.
6. I turn off auto-pay for the loan.
Doesn't matter. If you leave it on, though, make sure it's for a small amount.
7. I pay attention to the next due date and input it into every calendar I own. I make no payments until that date.
Not necessary. Some of us make tiny payments each month.
8. Once the $4555 is paid, I am then allowed to withdraw the $4555 from the account securing the loan if I so choose.
Yes. In fact I make that payment directly from that savings account.
I hope I have this right.

@SouthJamaica Thanks. I will do that. I will leave the auto-pay on and pay, as @FireMedic1 did, $1 a month or something like that. Do you also suggest just $3001 (or I believe you posted at one point that you did $3010).

Re: NFCU SSL (Pledge Loan)

SouthJamaica — Fri, 31 Mar 2023 01:56:09 GMT

@Jeffster1 wrote:
@SouthJamaica wrote:
@Jeffster1 wrote:
My original credit builder loan is on its next-to-last payment, and I decided to take out an SSL with NFCU. MANY thanks to all who contributed to the many threads detailing the ins and outs of SSLs.

Maybe I am dumb as a box of rocks but I just want to confirm my path with those who have gone down it before, and perhaps get some constructive criticism and advice.

1. I am transferring $5000 from an external account into my NFCU account.
2. Once the $5000 is in NFCU, I will contact NFCU to apply for a Pledge Loan (SSL).
3. I will ask for a Pledge Loan of $5000 with a 60 month term.
4. Once approved, I will pay back 91.1% of the SSL, leaving a balance of 8.9%. (8.9% of $5000 is $445. I will pay $4555 back right away.)
5. This will advance my next payment due date way down the line.
6. I turn off auto-pay for the loan.
Doesn't matter. If you leave it on, though, make sure it's for a small amount.
7. I pay attention to the next due date and input it into every calendar I own. I make no payments until that date.
Not necessary. Some of us make tiny payments each month.
8. Once the $4555 is paid, I am then allowed to withdraw the $4555 from the account securing the loan if I so choose.
Yes. In fact I make that payment directly from that savings account.
I hope I have this right.

@SouthJamaica Thanks. I will do that. I will leave the auto-pay on and pay, as @FireMedic1 did, $1 a month or something like that. Do you also suggest just $3001 (or I believe you posted at one point that you did $3010).

Yes I did $3010 but it really doesn't matter if you do more. You'll get the money back in a couple of days.

Re: NFCU SSL (Pledge Loan)

805orbust — Fri, 31 Mar 2023 03:58:05 GMT

Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?

Re: NFCU SSL (Pledge Loan)

GZG — Fri, 31 Mar 2023 04:42:28 GMT

@805orbust wrote:
Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?

no HP for a SSL compared to a personal loan.

dunno if Navy pushes out the due date for prepayment on personal loans as they do SSL's

Re: NFCU SSL (Pledge Loan)

FireMedic1 — Fri, 31 Mar 2023 19:03:04 GMT

After Alliant pulled the SSL plug thanks to this place probabaly. We all headed to NFCU. I only paid $1 every month just to show activity. Even though the date was way out there. Went thru a nerf with Alliant after the first SSL ran out. @SouthJamaica Yes it it was a typo. I did $3010. Has to be over $3000 for the 60 months.

Re: NFCU SSL (Pledge Loan)

SouthJamaica — Fri, 31 Mar 2023 18:18:55 GMT

@805orbust wrote:
Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?

1. Yes NFCU does do the same thing for personal loans... i.e. pushing out the next due date.

2. You're not really tying up your money with the SSL procedure; the money is "tied up" just for a day or two.

3. There would be a hard pull for the personal loan.

4. You could get turned down for the personal loan.

Re: NFCU SSL (Pledge Loan)

M_Smart007 — Sat, 01 Apr 2023 02:39:50 GMT

@SouthJamaica wrote:
@805orbust wrote:
Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?
1. Yes NFCU does do the same thing for personal loans... i.e. pushing out the next due date.
2. You're not really tying up your money with the SSL procedure; the money is "tied up" just for a day or two.
3. There would be a hard pull for the personal loan.
4. You could get turned down for the personal loan.

+1 This^

@805orbust,

I took out four loans in total.

1) Navy SSL (SP)

1) Navy PL Unsecured (HP)

(2) Penfed unsecured loans on (1 HP)

Now I admit, it was a funny way of doing things,

I also wanted to experiment with having (4) open loans. (and paydown utilization science test)

HP's are a dime a dozen "Plenty Available"

I ended up paying everything off, and keeping a $20 balance on the PenFed $25K Unsecured loan.

At least on paper, (during a manual review) it looks good to have paid off (3) and mostly paid off #4 ..FICO likes it

Computer algorithms could care less, as long as it see's an open installment paid below 8.9% (now that is better than Experian Boost)

My PenFed unsecured Installment loan will end Dec. 2023

I will most likely go the NFCU SSL $3010 route again..

And yes @SouthJamaica ,

I can hear you in my head saying "Please do not confuse the young credit students"

Re: NFCU SSL (Pledge Loan)

SouthJamaica — Sat, 01 Apr 2023 04:36:47 GMT

@M_Smart007 wrote:
@SouthJamaica wrote:
@805orbust wrote:
Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?
1. Yes NFCU does do the same thing for personal loans... i.e. pushing out the next due date.
2. You're not really tying up your money with the SSL procedure; the money is "tied up" just for a day or two.
3. There would be a hard pull for the personal loan.
4. You could get turned down for the personal loan.
+1 This^
@805orbust,
I took out four loans in total.
1) Navy SSL (SP)
1) Navy PL Unsecured (HP)
(2) Penfed unsecured loans on (1 HP)

Now I admit, it was a funny way of doing things,
I also wanted to experiment with having (4) open loans. (and paydown utilization science test)
HP's are a dime a dozen "Plenty Available"
I ended up paying everything off, and keeping a $20 balance on the PenFed $25K Unsecured loan.
At least on paper, (during a manual review) it looks good to have paid off (3) and mostly paid off #4 ..FICO likes it
Computer algorithms could care less, as long as it see's an open installment paid below 8.9% (now that is better than Experian Boost)

My PenFed unsecured Installment loan will end Dec. 2023
I will most likely go the NFCU SSL $3010 route again..

And yes @SouthJamaica ,
I can hear you in my head saying "Please do not confuse the young credit students"

You really know me

Re: NFCU SSL (Pledge Loan)

805orbust — Tue, 04 Apr 2023 03:31:34 GMT

Ok that makes sense... good points on all counts. The only reason It even occurred to me was back in 2020 when I bought my Accord, I immediately started tossing extra payments in the first few months and by the 6 month mark it was showing that I didn't owe another payment for like another 18 months. I had never seen that before, and obviously started to call them to make "principal payments" instead before finally paying it off after 17 months. Never taken a loan with NFCU, but I did think that was cool with PenFed.

Re: NFCU SSL (Pledge Loan)

CH-7-Mission-Accomplished — Tue, 04 Apr 2023 14:38:45 GMT

@SouthJamaica wrote:
@M_Smart007 wrote:
@SouthJamaica wrote:
@805orbust wrote:
Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?
1. Yes NFCU does do the same thing for personal loans... i.e. pushing out the next due date.
2. You're not really tying up your money with the SSL procedure; the money is "tied up" just for a day or two.
3. There would be a hard pull for the personal loan.
4. You could get turned down for the personal loan.
+1 This^
@805orbust,
I took out four loans in total.
1) Navy SSL (SP)
1) Navy PL Unsecured (HP)
(2) Penfed unsecured loans on (1 HP)

Now I admit, it was a funny way of doing things,
I also wanted to experiment with having (4) open loans. (and paydown utilization science test)
HP's are a dime a dozen "Plenty Available"
I ended up paying everything off, and keeping a $20 balance on the PenFed $25K Unsecured loan.
At least on paper, (during a manual review) it looks good to have paid off (3) and mostly paid off #4 ..FICO likes it
Computer algorithms could care less, as long as it see's an open installment paid below 8.9% (now that is better than Experian Boost)

My PenFed unsecured Installment loan will end Dec. 2023
I will most likely go the NFCU SSL $3010 route again..

And yes @SouthJamaica ,
I can hear you in my head saying "Please do not confuse the young credit students"
You really know me

When you say you paid everything off but left $20 on the Penfed personal loan, did that push the next due date out by many months? Does Penfed work like Navy in terms of advancing the next payment due date if you prepay? If yes, does this work with a Penfed SSL? Thanks.

Re: NFCU SSL (Pledge Loan)

SouthJamaica — Tue, 04 Apr 2023 15:26:23 GMT

@CH-7-Mission-Accomplished wrote:
@SouthJamaica wrote:
@M_Smart007 wrote:
@SouthJamaica wrote:
@805orbust wrote:
Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?
1. Yes NFCU does do the same thing for personal loans... i.e. pushing out the next due date.
2. You're not really tying up your money with the SSL procedure; the money is "tied up" just for a day or two.
3. There would be a hard pull for the personal loan.
4. You could get turned down for the personal loan.
+1 This^
@805orbust,
I took out four loans in total.
1) Navy SSL (SP)
1) Navy PL Unsecured (HP)
(2) Penfed unsecured loans on (1 HP)

Now I admit, it was a funny way of doing things,
I also wanted to experiment with having (4) open loans. (and paydown utilization science test)
HP's are a dime a dozen "Plenty Available"
I ended up paying everything off, and keeping a $20 balance on the PenFed $25K Unsecured loan.
At least on paper, (during a manual review) it looks good to have paid off (3) and mostly paid off #4 ..FICO likes it
Computer algorithms could care less, as long as it see's an open installment paid below 8.9% (now that is better than Experian Boost)

My PenFed unsecured Installment loan will end Dec. 2023
I will most likely go the NFCU SSL $3010 route again..

And yes @SouthJamaica ,
I can hear you in my head saying "Please do not confuse the young credit students"
You really know me
When you say you paid everything off but left $20 on the Penfed personal loan, did that push the next due date out by many months? Does Penfed work like Navy in terms of advancing the next payment due date if you prepay? If yes, does this work with a Penfed SSL? Thanks.

From what I've heard, PenFed works just like Navy, pushing the next payment due date out.

Re: NFCU SSL (Pledge Loan)

coldfusion — Tue, 04 Apr 2023 18:42:02 GMT

@FireMedic1 wrote:
Yep. Only need $3001. I paid $1 every other month. And use it if you have no other loans at all on your reports. You can apply online.

FYI nowadays you have to apply for an NFCU SSL in-branch or over the phone (1-888-842-6328).

Re: NFCU SSL (Pledge Loan)

M_Smart007 — Tue, 04 Apr 2023 22:44:56 GMT

@CH-7-Mission-Accomplished wrote:
@SouthJamaica wrote:
@M_Smart007 wrote:
@SouthJamaica wrote:
@805orbust wrote:
Hey guys, in theory, wouldn't this work with an unsecured loan as well? I mean, since you're beyond the beginner stage, why tie up your $$$?
1. Yes NFCU does do the same thing for personal loans... i.e. pushing out the next due date.
2. You're not really tying up your money with the SSL procedure; the money is "tied up" just for a day or two.
3. There would be a hard pull for the personal loan.
4. You could get turned down for the personal loan.
+1 This^
@805orbust,
I took out four loans in total.
1) Navy SSL (SP)
1) Navy PL Unsecured (HP)
(2) Penfed unsecured loans on (1 HP)

Now I admit, it was a funny way of doing things,
I also wanted to experiment with having (4) open loans. (and paydown utilization science test)
HP's are a dime a dozen "Plenty Available"
I ended up paying everything off, and keeping a $20 balance on the PenFed $25K Unsecured loan.
At least on paper, (during a manual review) it looks good to have paid off (3) and mostly paid off #4 ..FICO likes it
Computer algorithms could care less, as long as it see's an open installment paid below 8.9% (now that is better than Experian Boost)

My PenFed unsecured Installment loan will end Dec. 2023
I will most likely go the NFCU SSL $3010 route again..

And yes @SouthJamaica ,
I can hear you in my head saying "Please do not confuse the young credit students"
You really know me
When you say you paid everything off but left $20 on the Penfed personal loan, did that push the next due date out by many months? Does Penfed work like Navy in terms of advancing the next payment due date if you prepay? If yes, does this work with a Penfed SSL? Thanks.

@CH-7-Mission-Accomplished,

Pre-Paying the PenFed PL shortens the loan by one year ..so a five year will become four years.

ETA: I log in occasionally and make the few cents payment of interest that accumulates.

I do this to keep activity, and make sure it does not get closed.

I cannot answer you PenFed SSL question (my guess it would be the same as NFCU) .. I would call them and confirm?

Re: NFCU SSL (Pledge Loan)

Jeffster1 — Sun, 09 Apr 2023 00:24:19 GMT

Well, I did it. Easy-peasy. Many thanks to everyone.

1. I applied for an NFCU Pledge Loan for $3010 for 60 months.

2. Approved (of course).

3. Immediately paid back $2742.11.

4. Next due date moved to 8/18/2027.

5. Remaining balance is $268.07.

6. I'm considering submitting an auto-pay for $5 each month. Would that work? @SouthJamaica ?

Again, many thanks.

UPDATE: I set an auto-pay of $5.00 monthly.

Re: NFCU SSL (Pledge Loan)

SouthJamaica — Sun, 09 Apr 2023 02:38:34 GMT

@Jeffster1 wrote:
Well, I did it. Easy-peasy. Many thanks to everyone.

1. I applied for an NFCU Pledge Loan for $3010 for 60 months.

2. Approved (of course).

3. Immediately paid back $2742.11.

4. Next due date moved to 8/18/2027.

5. Remaining balance is $268.07.

6. I'm considering submitting an auto-pay for $5 each month. Would that work? @SouthJamaica ?

Again, many thanks.

UPDATE: I set an auto-pay of $5.00 monthly.

It should be fine for awhile, but towards the end watch out that you don't pay it down to zero prematurely.

Re: NFCU SSL (Pledge Loan)

Jeffster1 — Sun, 09 Apr 2023 09:58:58 GMT

@SouthJamaica Thanks. You are right. The auto-pay won't let me set it for any less than $5.00 so I will just keep an eye on it. I have 8/18/27 set for a notification on my iPhone, as well.

I have a balance of $268.07. There are 52 months between now and 8/18/27, and 60 months between now and 4/28, the end of the 60 month loan period. Not counting interest, 52 months at $5 a month will leave me with a balance of $8.07 on 8/18/27 so I guess I can also just manually pay $1 per month between 8/27 and 4/28.

Thank you so much. Your help has been invaluable.