NFCU SSL

[M_Smart007]

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@Anonymous wrote:

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@CivalV wrote:

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@Anonymous wrote:

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@CivalV wrote:

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@Anonymous wrote:

Not even half an hour!

I am assuming it’s going to take a bit to show up on my account list like my CLOC did so I’ll just check back later tonight or tomorrow to pay it down. They made this process insanely easy!

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 I honestly feel so slow when trying to understand if I would be putting up a little over $6000 towards a $3000 NFCU SSL? Open a secured loan with $3000 and then pay it down to 8.9% UTL with $2,760 on top of what I already put to open the loan? Am I not understanding this?

I really want to understand it because I do have $3K to open an SSL with NFCU. It would def. help my scores because I do not have any installment loans on my report and have not had one since June 19'. As a last resort if I cannot afford the NFCU SSL to open and pay it down to 8.9% then I will settle for a self lender loan which is what I used last year. 

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You put $3100 (so they don't try to stick you with a 3 year term) in the savings, call to ask for the loan, they put the $3100 loan in in your checking and freeze the savings, you pay the loan down to $275 and they give you back $2825 of your frozen funds. 

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So I opened the NFCU SSL.. I was told there would be no HP BUT I just got a notification that NFCU pulled TU? **bleep** 

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You sure it's a new HP and not a delayed notification for your card? NFCU normally pulls EQ for loans, TU is what the pull for cards. 

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+1

[MrPepperoni]

Hi guys, I am just reading this and considering to go this path...
Just to confirm with you that I understand this correctly:
So the thing is to get a personal loan and pay it off immediately to 8.9% and to have your next payment in years from now so for years it is reporting 8.9% and you have a score bump + credit mix ? Do I understand it right? Can I do so with DCU or only NFCU and PenFed provides that opportunity, right? Are there any restrictions to join NFCU ?

[Anonymous]

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@MrPepperoni wrote:

Hi guys, I am just reading this and considering to go this path...
Just to confirm with you that I understand this correctly:
So the thing is to get a personal loan and pay it off immediately to 8.9% and to have your next payment in years from now so for years it is reporting 8.9% and you have a score bump + credit mix ? Do I understand it right? Can I do so with DCU or only NFCU and PenFed provides that opportunity, right? Are there any restrictions to join NFCU ?

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@MrPepperoni Actually we now know it's equal to or less than 9%, not that that makes much of a difference.

You have the idea correctly except that there's no credit mix points if you already have a closed loan on your credit report. If you already have an open one, then it's not going to have this effect unless your aggregate installment utilization percentage is 9% or lower.

I have no experience with DCU or penfed, i'm sure other members will chime in about that.

Yes to join NFCU, you need an immediate family member or someone you're living with to have been in the military, retired or active. Sometimes they require the DD 214, sometimes not. But they have other ways to verify. Check the website for the exact language.

Edit: also you actually want to make a payment at least every six months, even if it's only five dollars just to keep it active, and you don't want to pay it so low that they forgive it. And obviously you want the longest term possible. $3010 is recommended for a five-year loan.

[Anonymous]

And by the way in order to determine whether an FI is suitable, you have to find out what happens when you make an extra payment.

Some institution‘s will push out your due dates taking those as additional payments, some will take it off principal and still require another payment the following month. The former works the latter does not. You can ask a financial institution how they deal with that situation and then you will know.

[Anonymous]

I had been thinking about doing this for a while now. Finally followed through a couple of weeks ago after reading @Anonymous's detailed account. I just want to thank you everyone for all the great information and advice that you share here on the forums.

I've been with NFCU for over 20 years, so I already had an established relationship. Got the approval email within 2 minutes after the phone call for $5005 for 60 months at 2.25%. Funds were deposited into my checking account immediately upon signing the eDocuments. All this happened on the 8th. The loan itself didn't show in my account until the next day, a Saturday. I paid $4605 on the loan that day, leaving $400 remaining. The funds were not released back into my savings account until Wednesday, the 13th. Not gonna lie, I was a little nervous when the money wasn't there by Tuesday. My initial first payment was set for $88.45 in July. After the lump sum payment it was pushed out to 11/2024 for $82.85. An explanation may have already been given here in the forums for why the new payment is so close to the amount of the original, but I couldn't find it.

I opened my mail last night to find that my statement reflects the amount still owed as $5005. Unfortunately, I didn't remember that my bank statement closes on the 8th so my payment on the 9th didn't post in time. Even though NFCU doesn't report loans til the end of the month, it looks like I won't see the score bump til July... someone correct me if I'm wrong. I really hope that I'm wrong.

To add to it, I just found out yesterday on the forums that the large credit card payment I have planned for today won't show on Navy's EQ FICO 9 til July because my cc statement won't cut til the day after the Account Review. So that's a downer.

I think I'm doing all the things I need to do, I just have lousy timing apparently.

[M_Smart007]

@Anonymous  Congratulations on your Navy SSL!

Sorry about the hiccup you are having, it will get sorted out.

And yes I was nervous on mine. I now have a small installment personal loan (was $25K)

and it had reported at 100% .. seen my score tank 17 points.

It has now reported way under 8.9% and the points are back.

I paid the NFCU SSL off as I did not need it anymore,

@Anonymous, Experienced pretty much the same thing as you are facing,

and He might chime in with some words to help ease the stress of it all.

Take care!

[Anonymous]

Thank you for the encouragement, @M_Smart007 . I've read many helpful posts from you and @Anonymous since I started my credit repair journey. I look forward to any knowledge you care to pass along.

Congratulations to you on the personal loan! Does that effect your score differently than a SSL since it's unsecured? Or is it all the same once you get it paid down?

[Anonymous]

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@Anonymous wrote:

Thank you for the encouragement, @M_Smart007 . I've read many helpful posts from you and @Anonymous since I started my credit repair journey. I look forward to any knowledge you care to pass along.

Congratulations to you on the personal loan! Does that effect your score differently than a SSL since it's unsecured? Or is it all the same once you get it paid down?

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NFCU reported my SSL the same day it was approved and they reported it at 100%. It's not really a big deal since it's an installment loan - it's not uncommon for installments to report at 100% and then start going down. Next month it reported paid down and I got 30+ points on each FICO 8. 

Try not to stress about it like I did. I was nervous because it looked like I had just taken on about 16% of my income in debt that month. Blip on the radar, lenders didn't care. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Thank you for the encouragement, @M_Smart007 . I've read many helpful posts from you and @Anonymous since I started my credit repair journey. I look forward to any knowledge you care to pass along.

Congratulations to you on the personal loan! Does that effect your score differently than a SSL since it's unsecured? Or is it all the same once you get it paid down?

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NFCU reported my SSL the same day it was approved and they reported it at 100%. It's not really a big deal since it's an installment loan - it's not uncommon for installments to report at 100% and then start going down. Next month it reported paid down and I got 30+ points on each FICO 8. 

Try not to stress about it like I did. I was nervous because it looked like I had just taken on about 16% of my income in debt that month. Blip on the radar, lenders didn't care. 

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30+ points would be great. I'll even be happy with less. At least that's something to look forward to.  I've mellowed out since the initial shock, but I probably would have passed out had it been 16% of my income.

Thanks for sharing your experience. It helped to put things in perspective.

[M_Smart007]

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@Anonymous wrote:

Thank you for the encouragement, @M_Smart007 . I've read many helpful posts from you and @Anonymous since I started my credit repair journey. I look forward to any knowledge you care to pass along.

Congratulations to you on the personal loan! Does that effect your score differently than a SSL since it's unsecured? Or is it all the same once you get it paid down?

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@AnonymousThank you!

Score wise FICO8 looks at it the same as an SSL.

The only thing that may look a tiny better is, some UW's look at paid off or long payment history as a good track record of paying off "various" types of debt. I know I had spoken to a WF UW at one time, and I had mentioned about all my paid for car loans $50-$100K

Her response was; "Ya, but those were secured"  .. so it could be just that particular UW'r .. or it could be how many of them think?

On a Computer algorithm based review, I highly doubt that it can tell the difference between secure and un-secured.

Like Saeren, I did not have an open installment loan reporting for several years.

So I seen about the same increase roughly 30 FICO8 points or so ..

The only knowledge I can pass along, is what I have learned by my mistakes, and what I have learned from this forum.

although I do have some credit history.

Saeren has more knowledge than Me, He is just too Darn smart! .. His learning curve is great!

(I often go to Him for advice)

I am just a slow learning old fart

Take care.