Hello all, i know this topic has popped up in so many places. I just wanted to share my experience. So yesterday i called NFCU about the secure loan. I got the same info i have seen many times on the board. So i opend a loan for $3001.00 to achieve the 60 month loan. I was quoted 2.25% intrest, $53/month. I was told i would get an answer, no credit check, in aprox 2 hours. About 20 min later i got a txt saying to sign my documents. I did , and the money was already in my checking. This morning checking the AP i made a payment of $2761.00 this is pending and says it will show up in 1-2 days. This extended my payment until Aug 17, 2023 with a balance of $240.18 (.18/ day intrest guessing at the full amount) So then i set up a monthly payment of $3.00/60 months = $180.00 this will leave $60.18 + intrest , so i can 1. Keep a monthly payment to keep it active, 2 pay very min intrest, and 3 keep the balance above the min payment ($53.00) so they wont wright off the loan balance to close it out. I have not seen the impact to my credit as of yet, i do have a self lender loan that is going to be paid off in feb of next year, and i plan on buying a house in March of next year. So my thought is 1. building my relationship with NFCU without an HP, also have their CLOC for $500 opend last month. 2. Keeping an open installment loan, since the other one will fall just short of my time to buy a home. The self lender is a 2 yr $525 loan. I would of done NFCU sooner but didnt have the $$$ to do this term. Time to sit back in the garden and wait until my BK7 is 2 yrs old. By then all accounts will be 1 yr, and several will be 2+ so hopeing to be in the target zone for a good rate. Hopeing this will show NFCU i am a life customer so i can start getting their CC's and move on from the sub prime cards that have helped me get where i am. Hopeing this will help somone whos on the fence about trying this. Again i havent seen my credit score change once this hits, but considering it will start at 8% UTI, and should help the UTI of my other loan that is just under 50% that i cant pay off early i am hopeing for a few points. Not expecting miricles, just want to tweak my file any way i can to get as good a rate as i can qualify. If i missed anything let me know. Thanks for reading!
You are probably actually going to see a small drop in score. You already had an installment loan, so you pretty much just took out a new account, dropping your AAoA and your AoNA. The score improvement is for folks like me that no longer have an installment loan reporting. I lost about 40 points when my auto loan was paid off and closed. I opened one tonight for an 18 month term that should take me through either a new car loan or a mortgage sometime this year or early next year.
New account is reporting with low balance, Tran increased 19 pt, eq 12 PT not sure on ex. Only changes reported were 1. 2 inq removed, 2. UTI went from 6% to 0% and 3 the new account. So i would feel confident to say roughly 10 points is the new account. Currently sitting at Tran 669 and eq 692. AOA is 1 yr including the new account. When i add the AU account that is 6 Y 6 M, it will bring me up to 1 Y 8M AOA. I am shooting for 1 yr from now to apply for mortgage, so i will be at 2Y8M at that point as i am done with new accounts. I am going to go for the AZEO next to see if i get any bump, figure leaving $10 on my Credit one ($10/$650) will be safe and shouldnt see any other changes . So if i do nothing else this is what it will look like...
Tran AOA 2Y8M with 7 INQ all over 1 yr old UTI of 1% or less depending on results of AZEO. all individual accounts will be 1yr + with 1 personal loan(the new one with NFCU) , 2 AU CC's and 3 regular CC's and a CLOC(also NFCU500)
Eq will look about the same, but only 4 INQ
My wife who is currently at 694 Tran and 704 EQ
6 Inq (3 EQ) all accounts 1 yr plus, few student loans currently in forbarrence for loan forgiveness, school had a major lawsuit against it... been several years of waiting will see how it plays out.
Now for both of us we have 25 or more good accounts that are closed personal loans, car loans, student loans, credit cards a little of everything.
BK 7 discharged 2/22/18 so will be 2 yrs post for FHA. Plan on NFCU for loan. Not sure what else , if anything , i need/can do but hurry up and wait. Let me know if you have any advice/questions thanks
If you did it like i did it should work. First question is did you do it for $3001.00+? the $1 makes a diffrence in length of loan. I paid it as soon as it showed up down to the amount i specified. Looking just now it shows balance 235.06 min payment of $42 due aug 17 2023 payment scheduled for may 29th for $3.00 daily intrest $0.01/day 61 month term
Then your good, the next payment just reflects how many min payments to pay it off in the 60 month term. I suggest doing a small monthly payment like $3-$4 auto payments both for activity, and to keep them from cutting the loan short due to no activity. Just a little something to keep it active. Just make sure you dont pay too much and have it get paid off early over time the date will extend out, as your small payments add up. Like for me $42/month and i am paying $3 so aprox every 14 months my next payment will go out another month. Hope this helps!