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How do shared secured loans work?

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Regular Contributor

How do shared secured loans work?

I'm looking at NFCU SSL, I see that I can do a 5-year with a minium deposit of $1,000. Let's say I took that option. How would it benefit and affect me? Do I make payments on the $1,000? At the end of my 5-year SSL, do I get $2,000? Do I pay interest or does NFCU pay interest? What would be an estimated monthly payment? 

Open LOC:
Paid-off Installment Loans:
2018:
2019:
Message 1 of 32
31 REPLIES 31
Frequent Contributor

Re: How do shared secured loans work?

Message 2 of 32
Frequent Contributor

Re: How do shared secured loans work?

1. You'll need $3001 minimum for the 5 year SSL. $3010 to be safe.
2. You get the funds back as soon as you pay down to 8.9%
3. Yes, you pay interest on the open loan whatever amount that might be when interest is calculated.

ETA This is your money you are using; hence, secure. You are not doubling your money. You're not using their money.
Message 3 of 32
Regular Contributor

Re: How do shared secured loans work?


@AllZero wrote:
1. You'll need $3001 minimum for the 5 year SSL. $3010 to be safe.
2. You get the funds back as soon as you pay down to 8.9%
3. Yes, you pay interest on the open loan whatever amount that might be when interest is calculated.

ETA This is your money you are using; hence, secure. You are not doubling your money. You're not using their money.

That's what i'm not understanding. If I put in the $3010, but then I have to make payments until I hit $3010 right? So wouldn't there be $6020 at the end? 

 

Screenshot 2019-08-14 at 1.54.16 AM.png

What is the difference between (above) and (below)?

 

Screenshot 2019-08-14 at 1.56.43 AM.png

Open LOC:
Paid-off Installment Loans:
2018:
2019:
Message 4 of 32
Frequent Contributor

Re: How do shared secured loans work?

Message 5 of 32
Regular Contributor

Re: How do shared secured loans work?

So SSL are basically forms of paying for credit history?
Open LOC:
Paid-off Installment Loans:
2018:
2019:
Message 6 of 32
Frequent Contributor

Re: How do shared secured loans work?


@513credit wrote:

@AllZero wrote:
1. You'll need $3001 minimum for the 5 year SSL. $3010 to be safe.
2. You get the funds back as soon as you pay down to 8.9%
3. Yes, you pay interest on the open loan whatever amount that might be when interest is calculated.

ETA This is your money you are using; hence, secure. You are not doubling your money. You're not using their money.

That's what i'm not understanding. If I put in the $3010, but then I have to make payments until I hit $3010 right? So wouldn't there be $6020 at the end? 

 


You put in $3010 of your own money into the SSL account. They give you back $3010 immediately. They will freeze the SSL funds until you pay it back. Use the funds they gave you to pay back and down the SSL account to 8.9% ($2742.11). The unfrozen funds will return back into your account. The rest will be frozen to keep the account open. Set up autopay for a few dollars to keep account active. Each autopay will return the unfrozen funds back into your account, whichever amount that you set up autopay for.

Message 7 of 32
Frequent Contributor

Re: How do shared secured loans work?


@513credit wrote:
So SSL are basically forms of paying for credit history?

Yes.

Message 8 of 32
Super Contributor

Re: How do shared secured loans work?


@513credit wrote:

@AllZero wrote:
1. You'll need $3001 minimum for the 5 year SSL. $3010 to be safe.
2. You get the funds back as soon as you pay down to 8.9%
3. Yes, you pay interest on the open loan whatever amount that might be when interest is calculated.

ETA This is your money you are using; hence, secure. You are not doubling your money. You're not using their money.

That's what i'm not understanding. If I put in the $3010, but then I have to make payments until I hit $3010 right? So wouldn't there be $6020 at the end? 

 

Screenshot 2019-08-14 at 1.54.16 AM.png

What is the difference between (above) and (below)?

 

Screenshot 2019-08-14 at 1.56.43 AM.png


Initially yes, but I just make the payments via transfer back from the savings account, so the amount on hand goes down as the loan goes down.


Total revolving limits 719k (592500 reporting) FICO 8 scores: EQ 735 TU 782 EX 746
Message 9 of 32
Highlighted
Regular Contributor

Re: How do shared secured loans work?

I don't see how it would be benficial :\ oh well. Paying $3,000 for history is absurd.

Open LOC:
Paid-off Installment Loans:
2018:
2019:
Message 10 of 32
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