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Am I gardening??

Super Contributor

Re: Am I gardening??

Between now and then, see if you can grab a secured loan from a credit union. It will keep your scores from dropping so much, when the auto reports as paid off.
I wasn't for sure if you were paying ahead inorder to finish paying the loan sooner.
Since that's not the case. The secured loan is the next best thing.
Message 11 of 13
Established Member

Re: Am I gardening??

Ok.  So, this may sound like a dumb question, but ... when you say a secured account, do you mean like where they give me a credit card that is secured?  Or a personal loan for a given amount? 

Starting Score:  EQ: 620    TU: 596    EX: 622    
Current Score:  EQ: 639    TU: 614    EX: 648    
Goal Score:      EQ: 810    TU: 800    EX: 815    

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Message 12 of 13
Not applicable

Re: Am I gardening??


It's a personal loan using money in your savings account as collateral. FICO gives a score boost just for having an open installment loan of any kind. Alliant Credit Union used to be the lender of choice for this but stopped offering the product about a year ago. Navy Federal seems to be the best alternative. The key to what made them great is the ability to pay 91% of loan right away and push the date of next payment years down the road. The FICO score boost is the greatest with a loan balance under 9%.


Opening a shared secured loan elsewhere may have some scoring  benefit but most institutions only let you pay ~3 months ahead before shortening the term of the loan. Which makes the <9% technique relatively short lived.


Message 13 of 13
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