Anyone tried Self Lender and did it raise score?

[Anonymous]

Bill, you could be a big help to the community here if you would take a $500 unsecured loan with Alliant.  The SSL technique should be basically the same with an unsecured loan as with a secured loan -- take it out, pay it to $44 on Month 1, etc.  The interest will be higher but that should not matter since your principal ($44) is tiny.

The only drawback is the hard pull, but the benefit of the technique (+30 points on all three scores) compensates you for the inquiry impact (minus 5 to only one bureau).

[Billharrell]

I'm really tempted to do that, will report back if I do.

[Anonymous]

I thought Alliant was no longer offering such loans?

[Anonymous]

Alliant is no longer offering SS loans (shared secured personal loans).  I am suggesting that Bill try opening an unsecured personal loan.  The scoring benefit behind the SSL technique was never contingent upon the loan being secured.

[Billharrell]

It looks like Alliant has raised the minimum amount to $1000 on personal loans, and shortened the maximum term to 48 months, as well.

The benefit of the secured loan was no HP and easy qualification. Not having a previous installment loan on my reports, I'd be concerned about approval. I'm going to wait until my scores get back up into the mid-700s (currently low 700s) before applying (if at all), which should happen in March-April.

[Anonymous]

OK.  I have seen several posts over the last year or two where a person is trying to get an unsecured personal loan and the loan officer explains that his lender wants to see a 680 score (assuming high enough income and low enough pre-existing debt).  As I do some google searches it looks like personal loans are available at some lenders with scores that are even lower.

BTW, somebody else (AltCtrlDelMyScores) is the same situation and may be considering the unsecured loan.  Read the last couple posts in this thread. 

The $1000 minimum amount for an Alliant unsecured loan should not be a problem, since you do not have to come up with the $1000 to secure it.  Just use almost all of the loan amount to pay it down to $80.  The crucial thing to test is whether Alliant will still push the next due date out until close to the end of the term once you make that huge initial payment at month 1.  I think it is very likely that Alliant has the same policy across all its loan products (regarding pre-payment).

The other issue would be whether there is an origination fee for the loan.

Alliant's loan officers are typically friendly and knowledgeable people.  You could certainly get a lot of your questions answered if you gave them a call.  (E.g. origination fee, what score are they looking for, etc.)  I would not discuss your plans to pay off almost all of the loan at month 1.

[Shadowfactor]

How does this report to the credit agencies?
Say I chose the 48.50 a month for 12 month options. Does it show on my credit reports as a $550 loan with only 48.50 paid the first month ? Effectively showing the loan is at roughly 90% Util ?

Are you allowed prepayment for most of the 550 within the first 1-2 months ? To bring the Util under 8.9%
Is there a fee or penalty for doing that ?

What happens to the other 32 dollars?
Say I chose the 48.50 a month for 12 months option. 48.50X 12 = 582. But the website says I would get 550 plus interest ?
That leaves $32 on the table ? Is that a additional fee that’s added to the $15 admin fee shown ?

I’m interested in opening one until a suitable replacment is found for Alliant. Or I would be happy to test out a SSL for the forum, if someone can suggest one ?

[Billharrell]

Talked to a csr today via chat. It reports in about 60 days from opening, so you'll have two payments in before it reports. But YES, it will show that you have 80% outstanding on your $500 loan.

I also learned that you cannot prepay more than one month ahead. You can pay in full and close the account, then it will show as a closed loan in good standing.

[Billharrell]

... but yes, I signed up for one at the $550 level. Sign up was super easy and no HP. I'm better off with any installment loan reporting (even with a large chunk outstanding) than none, and I plan on gardening until the summer. By then it will be around 50%. I'm interested to see how (and if) my scores change once it reports in a couple months.

[Anonymous]

I just got a self lender today for 550. I have absolutely no installment loans on my credit and everytime I see my list of credit reasons for anything, it lists "Lack of installment loan information" so I figured that while I will cost me a little, why not. Its not a finance company and its not too costly plus, no hard pulls. Dont need the inquiry.