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Hey Guys,
I am trying to figure out SSL’s as a total novice. I found a NY based CU that seems to be a good option. Apparently, they do not do a hard pull to join nor do they do a HP when you open the SSL. Limitations: they only allow a loan of 80% of the amount in the savings account and they only report to the credit agencies quarterly. When I asked the rep if I can immediately pay the loan down to 10%-ish she asked why I would do it since they only report quarterly. Assuming you can pay it down and get the money out on the savings account how detrimental is only the quarterly reporting? It seems that this will tie up a little more cash than others but I am OK with that if the minimum loan requirement is not too high. They do not list the loan rates on their site so that is another issue.
The rep wasn't exactly excited to field my call so I will call back again tomorrow to confirm the details if you all think it is a promising option. I will post the name after I confirm all the details. I think anyone in NY State can get a SSL.
Calling the NYC credit unions is hilarious, “only in NY, Kids. Only in NY” HAHA.
NB
The quarterly reporting is no problem.
The problem from our end would be if membership in the CU was confined to one state.
Thanks! My understanding is membership is open to anyone, but they only will issue loans to NY state residents so that isn't much help. I will confirm all the details tomorrow.
They are also in conservatorship so there is that... They were a big taxi medallion lender. I have no issue with this.
wrote:
LOL, I recognized Mel**** CU. Been looking at too many CUs the last month...
YES! Haha, too funny.
So I think I found another option that may have less geographic restrictions. Will report back shortly.
With that said is Self Lender, not an easier option?? I do not know much (anything) about this, but SL has no Hard Pulls and, yes, it ties up money for a while but seems much less complicated. I was just on the phone for a half hour between departments and still don't have all the answers.
NB
Self-Lender does not permit you to pay off most of the loan at month 1 and then keep it open for a number of years. That's a crucial part of the SSL Technique.
Got it and thank you for the clarification. Regarding the scoring bump, is there an advantage to an SSL over Self? For me, I do not need a bump for any reason other than I would feel better about my financial situation (not applying for a mortgage anytime soon, etc.).
@Anonymous wrote:Got it and thank you for the clarification. Regarding the scoring bump, is there an advantage to an SSL over Self? For me, I do not need a bump for any reason other than I would feel better about my financial situation (not applying for a mortgage anytime soon, etc.).
Yes. Self-Lender does not permit you to pay off most of the loan at month 1 and then keep it open for a number of years. That's a crucial part of the SSL Technique.
It sounds like you are not familiar with the SSL technique and have not yet reviewed the link given at the beginning of this thread. Here it is. You should give particular attention to post #2 in that thread:
SSLs can be much cheaper than Self Lender.
The minimum you can put into Self Lender is $600 ($25 * 24 months) and you get back $525, which is a $75 loss... roughly 6.25% APR. Plus they have a $9 administrative fee to start.
CUs, meanwhile, will generally let you put in less money (usually $500, but $100 at Chartway, $200 at DCU, $250 at PenFed and US Senate FCU, $300 at AMHFCU) and also charge you far less, usually 3~4% APR with no administrative fee. Length of term is also negotiable, so you can usually do 6 months if all you want is something small, paid perfectly on your report.
AFAIK, anyway.
EDIT:
Self Lender is also the CU's equivalent to Credit Builder Loan, where you put in monthly payments and get a lump sum at the end.
SSLs are secured loans (hence the lower APR) so you deposit the entire loan amount first, and the CU freezes whatever is the loan amount. As you pay every month, whatever amount of that monthly payment was part of the principal gets unfrozen so that you can use the money if you wish to.