Confused about NFCU Secured Loan

[JJF]

• NFCU member since 2015, checking and savings both in keep alive - do not go dormant status.  NFCU was my refinance option, if I wanted to refinance my mortgage.  

• I am confused!  Is the NFCU share secured loan an installment loan?   How does it report?
• I thought an installment loan was borrow $3,001 for 60 months with a "fixed" monthly payment of $53 per month for 60 months.

• You make a one time payment and you pay it down to 9% - leaving a $270 balance. 1)   I've read forum posts suggesting you just made 50 plus monthly payments in advance and no further payments are due for the next 4 plus years.  2) I've read a forum post suggesting you now have 59 payments of less than $5/month.   3) I had a bank installment loan where they take your one time payment, credit nothing towards future payments and you still owe them in this case $53 per month until the loan is paid off which in this case would be less than 6 months.
• My gut says it's the first option,  The second option builds on first option and might be someone who wanted to pay the accrued interest each month rather than making no payments for the next 4 plus years.  
  
  

NFCU is not making any money on these loans and obviously is doing it as a benefit for their members.

Your insights are always appreciated.

[Varsity_Lu]

They are loans in name only.  I caved and got one in July.  Deposited $3,500, turned around and borrowed $3,500, then paid $3,350 back right away. Then, I took my original $3,500 and moved it back to Fidelity.  My next payment isn't due until like May of 2030.  It's costing me about 25 cents per month, but I got an instant 30 points bump on my FICO score. The point boost only work if the NFCU fake loan is your only loan. If you have any other loan already, it's not worth doing.

[JJF]

I saw my FICO8 EX and EQ scores drop when I paid off my auto loan.  My FICO8 TU score did not drop because my 1st mortgage reports to Transunion only.   @Varsity_Lu thanks for confirming no payments until May 2030.

My goal is I want the NFCU Flagship credit card.  In another forum post, NFCU values <whatever> and has their own internal NFCU only guidelines.  I figure a secured loan might help in 90 days to get NFCU Flagship credit card approval.  I also plan to start direct (not ACH) deposit into my checking account next month.  

[Vinjints]

Direct deposit is probably the highest recommended option for increasing NFCU internal score. Though it doesn't necessarily need to be your entire check. I also opened a Special EasyStart CD with them earlier this year in anticipation of apping myself, and hoping that will increase my odds as well. You might want to consider that on top of the DD.