topic Re: Self vs Credit Strong vs NFCU SSL ? in Rebuilding Your Credit

Self vs Credit Strong vs NFCU SSL ?

Anonymous — Sat, 07 Nov 2020 19:39:52 GMT

Which one will have the greatest impact on my credit? I know I can pay down the SSL from NFCU to 8.9% but unfortunately don't have THAT much cash for them to extend the loan past one year. Any advice or thoughts would be helpful and appreciated. Scores are currently in the mid 600s. Thank you and be safe.

Re: Self vs Credit Strong vs NFCU SSL ?

AllZero — Sat, 07 Nov 2020 19:44:08 GMT

How long of a term do you want?

Do you foresee yourself getting any other installment loans in the future; e.g. auto, mortgage, student, personal, etc?

Re: Self vs Credit Strong vs NFCU SSL ?

Anonymous — Sat, 07 Nov 2020 19:49:45 GMT

I'm looking for the longest term, lowest monthly payment, best impact on FICO scoring within the next 12-24 months.

Thank you for your reading!

Re: Self vs Credit Strong vs NFCU SSL ?

AllZero — Sat, 07 Nov 2020 19:54:27 GMT

Navy SSL would be the way to go. Immediate score increase once paid down to 8.9% without shortening loan term.

https://ficoforums.myfico.com/t5/Personal-Finance/The-Quest-for-an-SSL-alternative-to-Alliant/m-p/5517733/highlight/true#M66542

@spikeman768wrote:
I just spoke with a rep in the loan dept at NFCU, and I was told the following:

- Membership step: there is a soft pull (she spent a few minutes researching this)
- Loan application step: there is a hard pull
(from posts I've read elsewhere, experiences may vary in regards to whether or not they do them or what type and when)

Here is some SSL limit/threshold info for others so it can reduce phone calls:
$250-$500 - max 6 month term
$501-$1000 - max 12 month term
$1001-$1500 - max 18 month term
$1501-$2000 - max 24 month term
$2001-$3000 - max 36 month term
$3001+ - max 60 month term

Before I had even asked asked about the 60 month term, she told me that the 60 month term criteria can vary and final term approval will be left to the discretion of the loan officer on the consumer lending team who is approving the loan and setting the details of the loan. She said, "For instance, if a person decides to borrow, say, $3,050, the loan officer may choose to set the loan to a 36 month term. I have seem them do that sometimes. It is up to their discretion."

I asked if there is a certain amount which would ensure a 60 month term, and she said that could vary and is left to the loan officer to decide.

I updated these details in the online shared spreadsheet, "Credit Union Share-Secured Loan (SSL) Info":
(the main info is in the "CU list - Good SSL Offers" tab at the bottom of the spreadsheet)
https://docs.google.com/spreadsheets/d/1C86xZUbOlPK1XBSt9cutKQ8rU8ZwRAiVbpqHWA4J-tg

-Spike

Re: Self vs Credit Strong vs NFCU SSL ?

OmarGB9 — Sat, 07 Nov 2020 22:12:10 GMT

Unfortunately , the longer terms are usually for the larger loans. That said, as mentioned above, Navy is probably the best for this, so you could see what's the longest term they'll offer you for the amount you're looking at. Of note: the term/amount doesn't matter scoring-wise. And any lender will do.Only the pay down to 8.9% matters.

Re: Self vs Credit Strong vs NFCU SSL ?

Anonymous — Sat, 07 Nov 2020 23:39:25 GMT

Thank you for the advice. After reading the above I'm going to do the $1001 18 month term. I already have a secured card with them and CLOC, I plan to bank with them for the long term and have read nothing but great things once you get a foot in the door. I've learned so much on this forum and am grateful to all you guys for the advice and DPs.

Re: Self vs Credit Strong vs NFCU SSL ?

AllZero — Sat, 07 Nov 2020 23:46:24 GMT

@Anonymous To make clear, you understand that whatever is paid down will be returned back to you? If you can stretch to $3,001 it will give you 5 year SSL.

Re: Self vs Credit Strong vs NFCU SSL ?

M_Smart007 — Tue, 10 Nov 2020 08:09:54 GMT

Re: Self vs Credit Strong vs NFCU SSL ?

CreditBones — Tue, 10 Nov 2020 08:26:40 GMT

@AllZero wrote:
@Anonymous To make clear, you understand that whatever is paid down will be returned back to you? If you can stretch to $3,001 it will give you 5 year SSL.

Just like @AllZero suggested, try to get as much cash as possible to get approved for the longest term possible, because once you receive the loan check, and cash it, you will pay the loan down. Whatever amount you paid down will be unfrozen and ready for you to use again within 2-3 bizz days. Maybe you can borrow some more cash from a friend or family member, or wait for a few more paychecks. 3 more years of guaranteed great credit reporting from that loan, will be worth the hasle/sacrifice! My best wishes are out to you!

Re: Self vs Credit Strong vs NFCU SSL ?

DebtStinks — Tue, 10 Nov 2020 14:16:02 GMT

If, like you stated in a previous comment, you're seeking the lowest payment on an installment loan over the next 12-24 months, my recommendation would be kikoff.com

With kikoff.com, they verify your identity, loan you $12 and you pay back $1/month for 12 months. No interest. No fees. No credit check. Simple.

Best of luck!

Re: Self vs Credit Strong vs NFCU SSL ?

spiritcraft1 — Tue, 10 Nov 2020 14:42:55 GMT

@Anonymous wrote:
Thank you for the advice. After reading the above I'm going to do the $1001 18 month term. I already have a secured card with them and CLOC, I plan to bank with them for the long term and have read nothing but great things once you get a foot in the door. I've learned so much on this forum and am grateful to all you guys for the advice and DPs.

This is a wise move. Works like a charm!

Re: Self vs Credit Strong vs NFCU SSL ?

Whitneyy — Wed, 18 Nov 2020 03:32:30 GMT

@DebtStinks wrote:
If, like you stated in a previous comment, you're seeking the lowest payment on an installment loan over the next 12-24 months, my recommendation would be kikoff.com

With kikoff.com, they verify your identity, loan you $12 and you pay back $1/month for 12 months. No interest. No fees. No credit check. Simple.

Best of luck!

Kikoff doesn't report to all three though.

Re: Self vs Credit Strong vs NFCU SSL ?

BAD_UP — Wed, 18 Nov 2020 22:54:08 GMT

I just got rid of self after 3months IMO it didnt worth my fund$ being frozen in some low interest bearing CD for a year while i already had NFCU SSL. It was benefiting my score

Re: Self vs Credit Strong vs NFCU SSL ?

DebtStinks — Thu, 19 Nov 2020 02:11:54 GMT

@Whitneyy you are correct. But it's free, so...

Re: Self vs Credit Strong vs NFCU SSL ?

Anonymous — Thu, 19 Nov 2020 03:47:31 GMT

Thanks for sharing @AllZero . I learn something new each day here on the forum. Just to clarify, a SSL of $1001 for 18 months would have the same scoring outcomes as a SSL for $3001 at the max term of 60 months if paid down to 8.9%?

TIA

Re: Self vs Credit Strong vs NFCU SSL ?

AllZero — Thu, 19 Nov 2020 04:08:07 GMT

@Anonymous wrote:
Thanks for sharing @AllZero . I learn something new each day here on the forum. Just to clarify, a SSL of $1001 for 18 months would have the same scoring outcomes as a SSL for $3001 at the max term of 60 months if paid down to 8.9%?

@Anonymous That is correct. For FICO scoring purposes, it does not matter on the amount of the installment loan. It can be $500; $5,000; $50,000. You will get the same score output if loan amount is paid down to 8.9% utilization if that is your only open installment loan.

If you have no foreseeable installment loan in the future that may replace the SSL (e.g. mortgage, student, auto, personal), then, I would recommend having the longest SSL as possible.

I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant