I decided to get an SSL loan ($3.1K @ 60 months) from NFCU to 1.) Add an installment to the mix, though I have a student loan on my reports for another 18 months and 2.) To grease the proverbial skids with NFCU, with whom I am just starting to bank (BK 7 years ago; prequal for secured only, despite 0 derogatories/0 new accounts/0 inquiries/etc and solid rebuild for 7 years; like to hedge on my first app with them).
Now I am getting cold feet and not sure this will help my case whatsoever. Worst-case scenario, I figured, is a net zero benefit in terms of credit report/scores. No HP, so the only potential downward pull would be 1.) decreasing AAoA and, probably worse, 2.) opening a new account (albeit paid immediately down to > 9%)...thinking this would be offset with lowering my % of outstanding/revolving installments as I add $3K to the total, then pay it down to mere hundreds.
HOWEVER, perhaps it's not a wash and I would take more of a hit, making the credit costs outweight any perceived benefits from having a secured loan paid down with NFCU for, say, 91 days before I come in with my first credit app?
I opened my NFCU account 3-4 years ago, but did nothing with it...just starting having direct deposit go to them a month ago and ready to establish a serious relationship with them in hopes of favorable rates and credit products down the road.
...but honestly, if my score will DIP because of the new account + lowering my AAoA, then it's probably in my best interest to just fire off the CC app in a few weeks (just hit the 700 club again finally and reducing UTL like a monster, plus transferred a huge chunk to 0% offer and the losing card is yet to report the decrease...would wait until everything's cleaned up before poking and hoping), and if I am rejected, hope for a secured nRewards counteroffer (on the same HP?) and just let it graduate and app #2 shoftly thereafter.
If this were a HP, I wouldn't consider it now, as I will be looking for an auto loan in 12-18 months, right around when the student loans fall off...but if the penalties are offset, I figure, why not...or at least that's what I thought until it dawned on me I would be adding a new account (-) and watering down the average age of my accounts (-), at which point the genius light went dim and I starting to question whether this is actually a stupid idea, given my existing installment. 
What say you? Could someone with an student loan on the books for a decade and a half still derive a little benefit from the SSL?
Your current SL Student Loan and future auto loan would make the NFCU SSL redundant to your needs.
It is good that you have the DD Direct Deposit going into NFCU. Instead of the SSL, have you considered opening other products such as their certificates? https://www.navyfederal.org/checking-savings/savings/certificates.html
Yeah +1 with what @AllZero said. Which scoring model did you use to get your 700 fico score from? I would almost say you're better off going for the secured as the addition of revolving (credit card) account will benefit your scores much more in both the short and long term. Any hit to your scores because of Aoya or Aaoa will be temporary and you can trade up rather quickly. You're not *exactly* starting from scratch here. Good luck!
@805orbust wrote:Yeah +1 with what @AllZero said. Which scoring model did you use to get your 700 fico score from?
Great question...as the first to give me the big bump for no derogatories was Experian, but was just reading that NFCU favors TU for credit cards...and my TU score seems to lag the others for some reason.
I read a lot of people have been prequal'd by Navy, then denied; how about the inverse—could one be approved for an unsecured card, despite not showing one after the SP prequal...or are the odds usually insurmountable?
I'm HP risk adverse and can't do the credit calculus now with all these moving parts.
Yeah, Navy is a strange bird. If it was any other lender I would make the whole standard/outlier argument. However that said if I had a gun to my head I'd say you are in the sweet spot. Add to that you've got the prequal for the secured and I'd feel pretty good about your chances. Within 6 months you can apply for a 2nd card with them. Revolving debt (assuming low utilization, be good 😉) will skyrocket that score in short order.
@Fletcher2 wrote:I decided to get an SSL loan ($3.1K @ 60 months) from NFCU to 1.) Add an installment to the mix, though I have a student loan on my reports for another 18 months and 2.) To grease the proverbial skids with NFCU, with whom I am just starting to bank (BK 7 years ago; prequal for secured only, despite 0 derogatories/0 new accounts/0 inquiries/etc and solid rebuild for 7 years; like to hedge on my first app with them).
Now I am getting cold feet and not sure this will help my case whatsoever. Worst-case scenario, I figured, is a net zero benefit in terms of credit report/scores. No HP, so the only potential downward pull would be 1.) decreasing AAoA and, probably worse, 2.) opening a new account (albeit paid immediately down to > 9%)...thinking this would be offset with lowering my % of outstanding/revolving installments as I add $3K to the total, then pay it down to mere hundreds.
HOWEVER, perhaps it's not a wash and I would take more of a hit, making the credit costs outweight any perceived benefits from having a secured loan paid down with NFCU for, say, 91 days before I come in with my first credit app?
I opened my NFCU account 3-4 years ago, but did nothing with it...just starting having direct deposit go to them a month ago and ready to establish a serious relationship with them in hopes of favorable rates and credit products down the road.
...but honestly, if my score will DIP because of the new account + lowering my AAoA, then it's probably in my best interest to just fire off the CC app in a few weeks (just hit the 700 club again finally and reducing UTL like a monster, plus transferred a huge chunk to 0% offer and the losing card is yet to report the decrease...would wait until everything's cleaned up before poking and hoping), and if I am rejected, hope for a secured nRewards counteroffer (on the same HP?) and just let it graduate and app #2 shoftly thereafter.
If this were a HP, I wouldn't consider it now, as I will be looking for an auto loan in 12-18 months, right around when the student loans fall off...but if the penalties are offset, I figure, why not...or at least that's what I thought until it dawned on me I would be adding a new account (-) and watering down the average age of my accounts (-), at which point the genius light went dim and I starting to question whether this is actually a stupid idea, given my existing installment.
What say you? Could someone with an student loan on the books for a decade and a half still derive a little benefit from the SSL?
If your student loan is mostly paid off, no the SSL would contribute nothing, and might even lower some of your scores.
@Anonymous wrote:Great topic. Following this thread as I'm in a similar situation with both student loans and two auto loans reporting.
Based on what I've read here & other threads, it seems that other products with Navy could be more beneficial?
If you have no revolving accounts, getting an NFCU credit card would be good for your profile.
@Anonymous wrote:Great topic. Following this thread as I'm in a similar situation with both student loans and two auto loans reporting.
Based on what I've read here & other threads, it seems that other products with Navy could be more beneficial?
Yea, in short, I was trying to figure out:
- Will there be a benefit if I add an SSL, insofar as my total installement amount would increase, but my % of utilization/percent outstanding liability would decrease...like padding UTL on the revolving side; and
- If so, would this benefit, once I immediately pay it down to <9%, would outweigh the downward pull of a new account and slight reduction in average age; and
- If NFCU would like that what they see and be more inclided to approve me for an unsecured, rather than the semi-insulting secured card at this point in my journey.
I've put my SSL dreams on hold, though...probably take a stab at an unsecured app in a couple weeks after recent changes to credit profile get reported (all 7 year old derogs drop off the other CBs, recent BT reporting correctly, recent CLIs lowering my utilization 8 percentage points, etc).
I'll of course accept the secured card (so hope it's not another HP, if a counteroffer), but just trying to bring the unsecured odds forever in my favor with them, thus the SSL thoughts...
Ultimately the final decision lies with you, but there's no benefit you'll get with a low utilization SSL. You've got installment debt and having it in good standing is what counts. It's not *quite* calculated like revolving debt. Just look at the secured as a stepping stone. I'm not totally convinced that you would get shot down for a CashRewards card either.