Alliant loan--help!

[Anonymous]

Hey guys, looking to get a savings secured loan found on this link: http://www.alliantcreditunion.org/loans/personal/savingssecured/ from Alliant.

I figure if I can get my credit score up a couple of points at the expense of a couple of dollars, it would be worth it. 

The question is, can someone explain to me exactly how these loans work? And also, how long should I get the loan for? I was thinking 2 years for $500. 

Thanks. 

[Anonymous]

The longer the loan is, the more interest you would pay on it. You could always get another one if you paid it off and still didnt have something like an auto loan yet.

This type of loan is kind of comical though. "You give us your money, then pay us to let you borrow it." Lol

[Anonymous]

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@Anonymous wrote:
The longer the loan is, the more interest you would pay on it. You could always get another one if you paid it off and still didnt have something like an auto loan yet.

This type of loan is kind of comical though. "You give us your money, then pay us to let you borrow it." Lol

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The interest on a $500 secured loan would be about enough for a couple Big Macs.

[jamie123]

You should get the loan for as long as they will allow. Some people, like myself, they would only allow a 4 year term, other people have recieved a 5 year term.

Total interest costs for all 4 years of my $500 loan is about $23. That is a pretty good deal for the points that it buys you.

Deposit about $550 into your savings account and then take out the $500 share secured loan. Set up auto payments from the savings account to pay the monthly loan payments. The loan will take care of itself and at the end of the term you will have abot $27 in your account.

[Anonymous]

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@jamie123 wrote:

You should get the loan for as long as they will allow. Some people, like myself, they would only allow a 4 year term, other people have recieved a 5 year term.

Total interest costs for all 4 years of my $500 loan is about $23. That is a pretty good deal for the points that it buys you.

Deposit about $550 into your savings account and then take out the $500 share secured loan. Set up auto payments from the savings account to pay the monthly loan payments. The loan will take care of itself and at the end of the term you will have abot $27 in your account.

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Thanks for the response. The savings secured on this website http://www.alliantcreditunion.org/loans/personal/savingssecured/ makes you pay 3.95% resulting in a total of $52 interest. Shouldn't I pay down the principal so interest payments are therefore reduced? 

[axlm]

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@Anonymous wrote:

Thanks for the response. The savings secured on this website http://www.alliantcreditunion.org/loans/personal/savingssecured/ makes you pay 3.95% resulting in a total of $52 interest. Shouldn't I pay down the principal so interest payments are therefore reduced? 

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That's a great thing about the loan, you can pay early to reduce the interest. Just need to left something to pay little by little until the term. I'm in the process of getting one right now. Also your balance on the Savings account earn interest (.95% atm) so the loan interest could be even less.

[Anonymous]

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@axlm wrote:

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@Anonymous wrote:

Thanks for the response. The savings secured on this website http://www.alliantcreditunion.org/loans/personal/savingssecured/ makes you pay 3.95% resulting in a total of $52 interest. Shouldn't I pay down the principal so interest payments are therefore reduced? 

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That's a great thing about the loan, you can pay early to reduce the interest. Just need to left something to pay little by little until the term. I'm in the process of getting one right now. Also your balance on the Savings account earn interest (.95% atm) so the loan interest could be even less.

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Thanks. How much do you think I should pay off the loan once it is approved? ($500 loan) 

Does it report "ok" for all months on the CR because I heard it pushes due dates a couple months forward? 

[axlm]

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@Anonymous wrote:

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@axlm wrote:

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@Anonymous wrote:

Thanks for the response. The savings secured on this website http://www.alliantcreditunion.org/loans/personal/savingssecured/ makes you pay 3.95% resulting in a total of $52 interest. Shouldn't I pay down the principal so interest payments are therefore reduced? 

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That's a great thing about the loan, you can pay early to reduce the interest. Just need to left something to pay little by little until the term. I'm in the process of getting one right now. Also your balance on the Savings account earn interest (.95% atm) so the loan interest could be even less.

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Thanks. How much do you think I should pay off the loan once it is approved? ($500 loan) 

Does it report "ok" for all months on the CR because I heard it pushes due dates a couple months forward? 

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@Anonymous, @Revelate is the expert here, but I'm guessing you could pay 90% quickly if you wish. Apparently you can then pay $1 every 6 months or whatever small amount for the rest of the term, so your account stays active.

I agreed to play the Guinea pig part in order to see the effect on FICO and will be paying around 10% each month for 9 months until I hit 9%, and then will do as indicated above.

Edit: Yes, it is my understanding that the due date gets pushed, so you will have to pay manually. And it should report OK as long as the account is in good standing.

[Anonymous]

@axlm

Got it. So I can't do auto pay since the due dates are pushed forward?

Also, what do you think about getting two savings secured loans from alliant? (Credit building)

[axlm]

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Got it. So I can't do auto pay since the due dates are pushed forward?

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That's my understanding, correct.

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Also, what do you think about getting two savings secured loans from alliant? (Credit building)

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Like I said, I just started the process, so not sure about the effects yet. In my  humble, VERY unexperienced opinion, two are overboard, but I'm pretty sure others here have  2 of them. Maybe they will chime in.