With the extra free time that COVID-19 has bestowed upon many of us, I figured it was time to finally pull the trigger on trying the SSL technique. I’ve been reading about it here on myFICO forums since I was 18 (now 25).
Unfortunately with Alliant Credit Union discontinuing their SSL offering a couple years ago, I had to research elsewhere. I combed through this other myFICO post and found that Navy Federal Credit Union (NFCU) was a viable option for me, as my father is ex-military.
In short, yesterday I was approved for NFCU’s SSL! So far, no alerts about any HPs for the $5,010 60-month SSL too. A detailed timeline of my steps throughout the SSL process is below.
I will update with my CR stats once the SSL is reporting (yay for free weekly credit reports until April 2021 thanks to COVID-19). Note that I did go on a CC app spree immediately after the SSL approval, so factor that into my scoring. See my app spree post here.
I hope our community finds it helpful! Special thanks to everyone who has contributed to our forum’s SSL posts – they were essential to my SSL journey.
► 5/1/2020 - Called NFCU to ask questions regarding their Share Secure Loan, as their website info is limited. I wanted to make sure their SSL policies have not changed. I played dumbed and phrased my questions so that it would not bring attention to the SSL technique.
The loan department CSR confirmed:
- ...that making a larger payment than required (1) applies the excess to the subsequent required payments, (2) would make my next month’s payment(s) optional since my larger payment covered it/them, and (3) would not accelerate forward my next required payment due date.
- ...that opening a Checking or Savings account with NFCU is a SP, not HP.
- ...that opening a SSL with NFCU is also a SP since it is secured with my own funds in a NFCU Savings account.
- ...that for a $5k SSL, the loan term can be anywhere from 6 months to 60 months and is chosen by me.
- ...that there is no origination fee for opening a SSL.
► 5/1/2020 - Opened NFCU Checking and Savings accounts via the phone. (I recommend the Free Everyday Checking as there are no fees, balance minimums, or direct deposit requirements.) I am eligible for membership as my father is ex-military. (Proof is not required upon account setup, though they noted that at a later time someone from NFCU may ask for proof: AKA my father’s DD 214 form.) I setup online banking and downloaded the NFCU app. Note that to become a member, opening a Savings account is required and you must deposit $5 into it (which remains frozen in the account since it represents your ownership in the credit union).
► 5/1/2020 - In two of my external checking accounts, linked my NFCU Checking account so that I could initiate a funds transfer. As you may have read in this/other myFICO forum posts, pulling money into a NFCU account by initiating it on the NFCU side is difficult, especially if you need to transfer a large amount.
(I was able to immediately link my NFCU Checking to one of my external accounts, however this ‘immediate link’ feature was not available with the other bank so I had to initiate trial deposits instead for verification.)
► 5/1/2020 - Scheduled a $3,010 transfer from an external account into NFCU. Once I am able to verify the trial deposits with the other external account, I will transfer the remaining $2,000 into NFCU. So I will have transferred a total of $5,010 into NFCU.
► 5/2/2020 - I receive an email stating that I must sign & return the “Membership Agreement and Tax ID Certification” form (embedded link to the form is included). It indicates that I can send the documents via NFCU eMessage, fax, or mail. I live in the cloud – eMessage it is. I complete the forms on my laptop, log into NFCU online banking, and send the documents through the Messages link according to the specific instructions at the bottom of the form.
► 5/4/2020 - Trial deposits appear in my NFCU Checking account. Confirmed the trial deposit amounts with my external bank. Initiated a $2,000 transfer into my NFCU Checking account.
► 5/4/2020 - Previously scheduled $3,010 external transfer into my NFCU Checking account is initiated.
► 5/5/2020 - Received an eMessage that my “Membership Agreement and Tax ID Certification” form was processed.
► 5/6/2020 - My two externally-initiated funds transfers have cleared. My NFCU Checking account’s available balance is $5,010. I transfer this into my NFCU Savings, which now shows a $5,010 available balance.
► 5/6/2020 - I call NFCU to apply for a SSL (cannot be done online). Took less than 15 minutes! CSR said processing takes about 2 hours. I ask again whether applying for this is a SP or HP, and this CSR says nothing is pulled at all. She said if any pulls show, to file a dispute with the credit bureau to get it fixed. She said this is faster than trying to go through NFCU to fix it, as the bureau will reach out to NFCU for documentation.
I apply for $5,010 with a 60 month term, the maximum term for this dollar amount. (I was originally going to do $3,010 but was afraid they’d offer only 36 months like another forum member has reported. So, I upped it to $5,010 to be safe.)
► 5/6/2020 - My SSL is approved in less than 3 hours for 60 months (5 years). The interest rate is 2.25%, minimum monthly payment amount is $88.40.
My DPs at the time of applying are below:
- 795 EX, 789 TU (8), 792 TU (VS3). Was in the 800 club before my car loan (now PIF) – hoping that my new SSL bumps me up (but the new inquiries / accounts will ding me too)
- 3 open CCs + 1 closed in 2014, <1% utilization each, $19.5k total CL, 0/24 inquiries
- AAoA 4 yr 10 mo, AoOA 7 yr 0 mo, AoYA 0 yr 10 mo (car loan; if CC then 3 yr 10 mo)
- 1 car loan from 6/2019 until PIF 1/2020
► 5/6/2020 - I simulaneously receive an email with steps on how to access the ePromissory Note online through online banking. I scan through the legalese to ensure that the term written in the contract is 60 months. It is! I electronically sign.
► 5/6/2020 - Funds for the SSL appear in my Savings account immediately after electronically signing. The SSL is official! I transfer the loan funds to my Checking with the intention of setting up monthly AutoPay to keep not only the loan active, but also the Checking account (will use money in my Checking to make payments toward the SSL, whose pledged funds will free up in my Savings as I make payments).
Another reason for paying from my Checking (instead of the Savings) is because the CSR informed me that when I make a payment and they process it, they release SSL funds into my Savings - but it doesn't show as a transaction. The funds just appear, so it can get confusing as to where exactly funds in the Savings source from. So I opted to remove all funds from the Savings and into Checking. This way, when NFCU releases funds, I know that everything in my Savings are released funds triggered by my SSL payments.
► 5/6/2020 - I go on an app spree for 3 CCs; am approved for all 3. Woo! YEMV.
► 5/7/2020 - I pay off $4,570.30 (30¢ for 1 day of interest) of the SSL so that ~8.9% ($440) remains. Next payment due date changed from 6/11/2020 to 9/11/2024 and required payment to $26.50. This matches my calculations below. I will monitor to ensure the date is not moved up sooner.
6/11/2020 to 9/11/2024 = 51 months
$4,570 ÷ $88.40 = 51.6968…
$26.50 new minimum payment ÷ $5 monthly AutoPay = 5.3, round up to 6. So, every ~6 months my next payment due date will be pushed back 1 more month. Which makes sense because 60 months ÷ 6 = ~10 months, and 10 months + 51 months = 61 months (round to 60, which matches the term of my SSL).
► 5/7/2020 - I set up monthly AutoPay to keep the loan active. My SSL’s minimum payment is $88.40, therefore I made monthly AutoPay $5 so that the loan balance would not fall below the minimum payment and trigger NCFU closing the account.
My calculations: $440 remaining principal – $90 lowest ‘safe’ balance = $350 ÷ 60 months = $5.83. Rounded down to $5. Check calculations: $5 x 60 months = $300. $440 – $300 = $140, which is more than $90 / $88.40
EDIT: typos
Current Cards:
