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Shared secured installment loan?

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Anonymous
Not applicable

Shared secured installment loan?

So does it matter where I get the loan from? Like would any place that does a shared secured installment loan get reported, or is there only some places that do it? I found a local credit union that does this type of loan and thinking of going in an asking, but was just wondering?

 

Thanks,

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Shared secured installment loan?

It will likely get reported from any credit union, but that's definitely a question you should ask. There are a few other things you should ask, too.

 

For instance, there's a local credit union here that does savings secured loans, but they have a minimum $50 monthly payment on any loan. That doesn't work very well for the purpose most of us have for these loans and how we want to accomplish that.

 

You also would want to clarify how they handle it if you quickly pay the loan down supstancially (but not completely). The common advice on these loans is to pay them down right away to 9% of the original loan amount because that gives you lower utilization of your credit and has a positive effect on your scores. Then you stop paying the loan for awhile (or just pay a lot less every month) in order to keep the loan open. Many credit unions will let you pay down the loan, but they'll require you to keep making your full payment, and the loan will be paid off way earlier than you want.

 

Another question is about the credit pull? Do they do a hard pull? It may not be a problem if they do, depending on how many hard pulls you've had recently, but it's something to be aware of.

Message 2 of 6
RobertEG
Legendary Contributor

Re: Shared secured installment loan?

Some smaller credtiors do not even have credit reporting agreements with the CRAs, and thus cannot report.

 

The only type of loan that has a statutory requirement for reporting to a CRA is a govenment insured or guaranteed student loan.

The HIgher Education Act of 1965 mandates their reporting to thte CRAs.

Message 3 of 6
Anonymous
Not applicable

Re: Shared secured installment loan?

Ok thanks, I'll probly go on Sat to see what they tell me!

Message 4 of 6
SouthJamaica
Mega Contributor

Re: Shared secured installment loan?


@Anonymous wrote:

So does it matter where I get the loan from? Like would any place that does a shared secured installment loan get reported, or is there only some places that do it? I found a local credit union that does this type of loan and thinking of going in an asking, but was just wondering?

 

Thanks,


It definitely does matter, different credit unions have different rules.

 

Alliant Credit Union is proven to be a good one. It lets you keep loan open even after the loan is mostly paid down, which is the FICO scoring sweet spot.

 

 


Total revolving limits 568220 (504020 reporting) FICO 8: EQ 689 TU 691 EX 682




Message 5 of 6
takeshi74
Senior Contributor

Re: Shared secured installment loan?


@Anonymous wrote:

Like would any place that does a shared secured installment loan get reported, or is there only some places that do it?


It's not just installments -- not all creditors report to all 3 of the major CRA's.

Message 6 of 6
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