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Approved NFCU SSL - with detailed steps (May 2020)

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Regular Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)


@adrianaesque wrote:

@Neiltyson wrote:

Cool info What's the point of all this? To rebuild your credit or build relationship with nfcu?


Yes, the point is building credit (building a relationship with NFCU is an added bonus too). The people who benefit from the SSL technique are those who don't have an open installment loan on their credit profile. Part of FICO scoring is credit mix / credit diversity. Without the SSL, I only have open revolving accounts (credit cards). So by adding a loan with its balance less than 8.9% of the original amount, that is optimal and will boost my FICO score.

 

You can read more about the FAQs of the SSL technique at this MyFICO post here.


@adrianaesque 

Would this also help me if I have 2 installment loans (mortgage and auto), both at high utilization %?

auto original loan 40k, still owe 30k. Mortgage taken out January 2020. 

Cards (In order of approval)

Mortgage | Auto | Authorized User

Goal Cards




1 collection paid on TU, EX: Fall off in 2023
No Lates. Salary: 6fig

12.13.19 Start


7.8.20


In 12/2019 aside from AU account I had Zero CL, scores in mid 500’s, 2 Collections, and using this forum I was able to get my middle mortgage score above 620 and approved as joint applicant for my 1st mortgage. 4/13/20 Approved for my 1st unsecured card. 7/20/20 Approved for tier 1 auto loan without co-signer. 7/30/20 TCL $54,500 not including my AU account. Anyone can turn their credit around, it only needs Intention, Effort, Direction, Execution, and Vision to see where you want to be.
Message 11 of 35
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Mega Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)


@nyuphoto wrote:

@adrianaesque wrote:

@Neiltyson wrote:

Cool info What's the point of all this? To rebuild your credit or build relationship with nfcu?


Yes, the point is building credit (building a relationship with NFCU is an added bonus too). The people who benefit from the SSL technique are those who don't have an open installment loan on their credit profile. Part of FICO scoring is credit mix / credit diversity. Without the SSL, I only have open revolving accounts (credit cards). So by adding a loan with its balance less than 8.9% of the original amount, that is optimal and will boost my FICO score.

 

You can read more about the FAQs of the SSL technique at this MyFICO post here.


@adrianaesque 

Would this also help me if I have 2 installment loans (mortgage and auto), both at high utilization %?

auto original loan 40k, still owe 30k. Mortgage taken out January 2020. 


@nyuphoto, No , It would not help you and @Birdman7 (The FICO Score Master) can confirm thisSmiley Wink

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Mas...

Message 12 of 35
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Super Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)


@nyuphoto wrote:

@adrianaesque wrote:

@Neiltyson wrote:

Cool info What's the point of all this? To rebuild your credit or build relationship with nfcu?


Yes, the point is building credit (building a relationship with NFCU is an added bonus too). The people who benefit from the SSL technique are those who don't have an open installment loan on their credit profile. Part of FICO scoring is credit mix / credit diversity. Without the SSL, I only have open revolving accounts (credit cards). So by adding a loan with its balance less than 8.9% of the original amount, that is optimal and will boost my FICO score.

 

You can read more about the FAQs of the SSL technique at this MyFICO post here.


@adrianaesque 

Would this also help me if I have 2 installment loans (mortgage and auto), both at high utilization %?

auto original loan 40k, still owe 30k. Mortgage taken out January 2020. 


No it would not. It's only a technique for folks who do not have an installment loan.

 

The score bonus is based on aggregate installment utilization. It is also related to credit mix, which you already have covered.


Total revolving limits 648500 (572500 reporting) FICO 8 EQ 721 TU 744 EX 729

Message 13 of 35
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Regular Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)

@SouthJamaica @M_Smart007 

Thank you!! I just read Birdman7's resource post, awesome info there!!

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Mas...

Cards (In order of approval)

Mortgage | Auto | Authorized User

Goal Cards




1 collection paid on TU, EX: Fall off in 2023
No Lates. Salary: 6fig

12.13.19 Start


7.8.20


In 12/2019 aside from AU account I had Zero CL, scores in mid 500’s, 2 Collections, and using this forum I was able to get my middle mortgage score above 620 and approved as joint applicant for my 1st mortgage. 4/13/20 Approved for my 1st unsecured card. 7/20/20 Approved for tier 1 auto loan without co-signer. 7/30/20 TCL $54,500 not including my AU account. Anyone can turn their credit around, it only needs Intention, Effort, Direction, Execution, and Vision to see where you want to be.
Message 14 of 35
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Super Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)


@adrianaesque wrote:

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


@adrianaesque Beautiful post, excellent layout, I'm going to add a link to this in the Primer. Great job all the way around, I hope one of the three cards you snagged was a Navy. I haven't read that thread yet, LOL. But beautiful execution and it's recent information that will be great for the community to refer to thank you for your data points.

 

As you touched on, this will cause a variety of changes for your profile. First, it appears you're in the following scorecard: "clean/thin/aged/no new acct.," as I believe you have no derogatories, you only have 5 accounts on your CR that you have disclosed, your oldest account is at least 7 years old, and you have not had a new revolver for 3 years.

 

 So, you're going to get the dings for the HPs for the CCs. Then, it depends on the order of reporting, the reporting of the SSL first shouldn't have much effect until the second update when it's brought equal to or less than 9%, which could give a boost of 15-35 points. Credit mix should not be implicated since you have a previous loan on your credit report.

I suspect SSL will report first. However when one of the CCs report, you will be reassigned to a new account scorecard, causing 10-20 point loss, commonly referred to as the new account penalty.

 

Likewise, you will have any potential AAOA hits as each card and the SSL report, IF thresholds are crossed. 


Now here's where it gets interesting. You're also going to be reassigned to a thick scorecard when one of those CCs report. We don't know the magic number, so I can't tell you which one it will be. Recent information has me thinking it may be account # 7. But to be honest, we don't know if it's just revolvers or both revolvers and loans combined.

 

So it would be really great if you monitored your scores and let us know what happens as the SSL and each CC report. If you have 5 accounts on the report now and the SSL reports first that would make 6. The first credit card reporting would make 7.


So you could have both scorecards changes in one step. Or, you may see a drop from being reassigned to the new account scorecard and then a subsequent jump when you are reassigned to a thick scorecard. Again it's hard to predict because I'm not positive it includes loans although I think it does.

 

And to be honest I think you will see a jump when you go to a thick scorecard because inquiries cost a lot more on a thin scorecard, so those 3 will be reduced in magnitude when you change to a thick scorecard, I theorize.


So I imagine that if for nothing else you would see a score increase for the reduced inquiry penalty. But at the same time, those could be offset by reductions in AAOA, if thresholds are crossed. If you are keeping track of those, we could isolate or know if their interference was a possibility.

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 15 of 35
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Super Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)


@nyuphoto wrote:

@SouthJamaica @M_Smart007 

Thank you!! I just read Birdman7's resource post, awesome info there!!

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Mas...


@nyuphoto Thank you for the kind words about the primer. As a matter fact, I recently updated it with even more information! 

Yes, as @M_Smart007 and @SouthJamaica  stated, an SSL would not assist you. The amount would have to be way larger than your mortgage and car loan. So I don't think that's practical.

 

Like SJ said, it's based on aggregate utilization hitting 9% B/L, so your SSL would have to be so large that the remaining balances on your mortgage, SSL and car loan would be 9% of the total amount borrowed combining all three loans.

 

But it's great for people who do not have loans.

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 16 of 35
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Regular Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)

@Birdman7 

Thank you, after reading your primer I understand it so much better. Thanks for taking the time and putting the information down in such a detailed way. Everyone should have that as a must read on this forum. 

Cards (In order of approval)

Mortgage | Auto | Authorized User

Goal Cards




1 collection paid on TU, EX: Fall off in 2023
No Lates. Salary: 6fig

12.13.19 Start


7.8.20


In 12/2019 aside from AU account I had Zero CL, scores in mid 500’s, 2 Collections, and using this forum I was able to get my middle mortgage score above 620 and approved as joint applicant for my 1st mortgage. 4/13/20 Approved for my 1st unsecured card. 7/20/20 Approved for tier 1 auto loan without co-signer. 7/30/20 TCL $54,500 not including my AU account. Anyone can turn their credit around, it only needs Intention, Effort, Direction, Execution, and Vision to see where you want to be.
Message 17 of 35
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Super Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)

Yes I wish I would’ve had that to read when I started, but I’m glad that it is helpful to so many members. Definitely gives me some fulfillment to know that it does help others.

Still a lot that we don’t know, so it’s a work in progress, like I said, I just updated it because now we’re pretty sure of the threshold where it determines whether your profile is young or aged. if you notice at the bottom of each post, I put a last edited date; that way you can tell if you’ve read the most updated version.

Again thank you for the kind words, I am very glad that you found it helpful.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 18 of 35
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Valued Member

Re: Approved NFCU SSL - with detailed steps (May 2020)

I initiated the NFCU loan in June using the $3010 amount I saw in a similar thread. I then paid $2725 leaving me a balance of $275.74 due in 2024.

 

When this hit my credit report it is only showing as a loant of 275.74. Should I have waited until the $3010 showed on the CR? Has this happened to anyone else?

 

 



Message 19 of 35
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Super Contributor

Re: Approved NFCU SSL - with detailed steps (May 2020)

I’ve seen other people immediately pay it down and it worked fine, so it sounds like an error in the reporting to me. But, where are you sourcing your data from? And did you see a score jump?

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 20 of 35
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