Well I may have made a mistake with my DS credit building journey. Had him open his own NFCU Savings and Checking accounts in Nov, took him till Dec to app for a 12mo $1000 SSL loan which he got, he then appd and got a $1000 nSecured Visa. I was not aware of the NFCU SSL technique until recently. Originally thought it would just be good for him to have a couple of trade lines on his credit since he had none.
We paid down his Secured Pledge Loan down to about $89 and his next payment went from being due 02/16/21 to 12/16/21 so that worked like expected. Problem is now knowing better how to utilize this loan should we get a new 5yr Loan $3100, would they "NFCU" even let him have two loans open? Or payoff the 1st and get a new one or just wait till next year when the original loan pays off and do another.
Thanks!
@oorhett wrote:just wait till next year when the original loan pays off and do another.
Yes to the above for the 5 year SSL if no future installment loan is open, e.g. auto, student, personal, mortgage, etc.
If you have not done so, I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant
My DD finally opened an NFCU account a month or so ago. She already has pretty good credit scores but only has had credit cards thus far. She transferred $3100 into her NFCU savings and called up and asked for a $3100 Shares Secured Loan. The person that took her application said everything looks great gave her a quote for payments for a 60 mo term and told her to watch for some disclosures to sign in a few hours. Instead, she received a phone call letting her know that they were only willing to do the loan for 36 months. She told them she would call them back. Called back today and asked if she needed to increase the loan size a few hundred to get a 60 mo term. After waiting on hold for a few minutes was told all we can do would be to submit a new application for $3400 and see what they come back and say. I Will update here with our results.
Thanks for sharing the data points. Hopefully, she is able to do the 60 month term.
No luck getting them to give us the 60 mo term asked to increase the loan size to $3500 and it still came back at 36 mo. So we ended up lowering the loan amount to $2100 and doing the 36 months. Plan to let it report and then pay it down to 8.9%
@oorhett wrote:No luck getting them to give us the 60 mo term asked to increase the loan size to $3500 and it still came back at 36 mo. So we ended up lowering the loan amount to $2100 and doing the 36 months. Plan to let it report and then pay it down to 8.9%
Did they advise what the threshold would be for the 60 month term? Or they just not doing 60 month term at all?
No real explanation only that in this case, they would only do 36 months. We had to call up again because when they changed the loan size to $2100 the disclosure still had $3100 as the collateralized amount from savings. So we called again to fix that, this CSR we spoke with was surprised we weren't getting the initial amount for 60 mo and we thought for a moment he would make it happen for us but eventually came back to say that the underwriter was only willing to do 36 mo. At this point, they still have a hold on the full $3100 and have funded her checking with $2100
