FYI: I saw a post here about a week ago about a new SSL someone found. I think it was through America First Credit Union.
I'm not in need of an installment so I didn't read all the details, but there's a thread. I believe the poster mentioned minimum $550 SSLs.
OP: Sorry for your loss.
I'm not in need of an installment so I didn't read all the details, but there's a thread. I believe the poster mentioned minimum $550 SSLs.
OP: Sorry for your loss.
We unintentionally had that happen to us too. Got a loan, after three weeks changed cars through the same dealership (long story). End result first loan at CU closed, new loan opened. FICO drop from first loan 11pts, second FICO drop from closing and opening second loan for same exact amount of money, 48pts. Lost 59pts all together. almost a year later and still hasnt bounced back. Lesson learned.
Weird thing is it was a joint loan and my FICO didnt take that big of a hit, mine was only about 30pts total. Since it was my car i feel bad it dinged DH so much.
Bumping because this scared me 
I am about to pay off my auto loan and it is the only installment loan I have currently. I was hoping to change my car shortly therafter but now I'm worried that I'll face a steep loss.
The idea of losing 50 pts is terrifying. I am already on the cusp (699 FICO, 720 Auto) and need all the points I can get because I want to lease and need to stay above 700.
Is it worth it to take out a small installment loan elsewhere just to have one on my report?
@Anonymous wrote:...
The idea of losing 50 pts is terrifying. I am already on the cusp (699 FICO, 720 Auto) and need all the points I can get because I want to lease and need to stay above 700.
Is it worth it to take out a small installment loan elsewhere just to have one on my report?
The idea behind a SSL is to pay minimal interest while gaining the benefits of an active installment account. You can easily maintain a 20+pt bump for years if you can find an institution that will structure loan payments favorably, and pay less than $30 worth of interest.
As for whether it is "worth it" that is up to you. I think so, and went through the trouble of getting a $5k loan so I could stretch it out for 5 years, and will pay less in interest than most people do for a month worth of coffee or cell service. Despite what ABDC has said, it is still possible to get loans that will work for this purpose, although they may not be easy to qualify for, or may require more interest or fees to be paid -- but if that small amount will save you thousands in interest on a larger purchase, it seems silly not to utilize such a tool.
