Help for a Credit Noob

[AllZero]

@Tuck831.  Are you officially a member of NFCU?

[Tuck831]

Hey AllZero (or anyone else who can provide a good answer). Based off of what's already known in this thread, would it be beneficial to take out a Shares Secured Loan with NFCU?

I'm now a member and am anticipating getting my $500 deposit back from my secured Discover card this month. I was doing some reading that it would be very beneficial, especially with a thin credit profile (2 revolving accounts), to get a shared secure installment loan and immediately pay it down to ~9% and keep it open. Navy offers one for up to 60 months and another 61-180 months. Would it be wise to take the money from the deposit and roll it into doing something like this?

[Tuck831]

Sorry, I missed your last reply. Yes, I am now officially a member! 💪💪

[AllZero]

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@Tuck831 wrote:
Hey AllZero (or anyone else who can provide a good answer). Based off of what's already known in this thread, would it be beneficial to take out a Shares Secured Loan with NFCU?

I'm now a member and am anticipating getting my $500 deposit back from my secured Discover card this month. I was doing some reading that it would be very beneficial, especially with a thin credit profile (2 revolving accounts), to get a shared secure installment loan and immediately pay it down to ~9% and keep it open. Navy offers one for up to 60 months and another 61-180 months. Would it be wise to take the money from the deposit and roll it into doing something like this?

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Minimum for 60 month / 5 year SSL is $3,001. I'm not sure how much it would be for the +61 month term. You'll have to ask Navy. If you have no installment loan (student, auto, personal, mortgage), it is recommended to do the longest term you can. I would not recommend doing anything shorter because it will lower your AAoA Average Age of Accounts. e.g. 12 month term and having to repeat the steps.

If you haven't done so, I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant

[AllZero]

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@Tuck831 wrote:
Sorry, I missed your last reply. Yes, I am now officially a member! 💪💪

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Congratulations on your membership!

[Anonymous]

@Tuck831 yes adding an SSL from Navy would be awesome! Follow @AllZero ‘s advice about the term.

You definitely need to thicken up your profile and a SSL would make a welcome addition. I would also want to add a minimum of 3 to 4 quality cards in the future, preferably two when you can and then 2 12 months later.

Really no more than that needed from a scoring perspective, unless you just want them or they make financial sense.

Your goal is to get what you need on your credit report and then garden. The longer you garden, the more it will age and the better your file and scores will be. But you definitely need a few in the beginning to serve as a buffer in case you need things later on.

Congratulations on becoming a member of Navy, welcome to the family. And congratulations for ranking up to member.