@CH-7-Mission-Accomplished wrote:My BK 7 will fall of in 08/23. My current Alliant CU auto loan is paid down to $100 out of 31K and the next payment due is 07/24.
I was going to get a Navy SSL for 35K for 15 years so that the "new loan" would be more than two years prior to the BK falling off.
I do not want any loans or CC's for anything less than 10K on my open reports. The idea of using 35K was to make it similar to my auto loan. I don't want a $500 SSL at this stage of my rebuild.
I transferred the 35K to my Navy checking account. I started through the app process on the phone, and I told the rep what I wanted to do, and I made sure there would be no HP, and I told her the term I wanted and the amount I wanted. I had planned to pay it down to $100 and then have 180 months of an installment loan to cover me for many years to come.
So it turns out that yes, 35K is eligible for 180 months, but in the app process you have to tell them the purpose for the SSL for more a term more than 5 years -- like home improvements, whatever -- otherwise it's a 60 month max term.
I asked her if she was sure since it's secured by CASH and she read me the rule. I politely declined and ended the call. Of course I could call back and say I want 35K for 15 years and just tell them it's for home improvements or college tuition or whatever -- it's not like they are going to follow up on that. But I decided that since I'm good for a year after my BK falls off, I'll just deal with whether I need an installment loan in summer of 2024. The Alliant auto loan will be in force until 7/24.
I would note that I tried to do this through their online application, and the maximum term the online app would let you request was 60 months, so that is why I called. It clearly says on their website that 30K plus is eligible for 15 years.
Just FYI.
Thank you for sharing the data points! It would get noteworthy to see if one can achieve a 15 year SSL. Hope to read of your future progress.
@CH-7-Mission-Accomplished wrote:I still may decide to do it. I'm mulling it over. I have no new accounts in the last two years and do not plan to open anything for the next two. I have no inquiries on any bureau. The car I bought in 01/2019 only has 5K miles on it, so I'm not likely to get another auto loan for 10 years.
$100 SSL balance on $35K may be too low. IIRC you want your loan balance to be higher than your monthly payment due amount. If it's lower, your run the risk of early loan forgiveness.
@CH-7-Mission-Accomplished wrote:Yes that is a risk, but I have never, in real life, heard of a lender "forgiving" a loan balance unless it's less than the cost of postage. My balance has been at this level for a year now. I just pay the interest each month which is pennies.
With 180 months, NFCU's 3% isn't too terrible. I only reference the data points I've read in the mega thread SSL topic. As stated in other post, you're in uncharted territory when it comes to 15 year SSL.
@AllZero wrote:
@CH-7-Mission-Accomplished wrote:I still may decide to do it. I'm mulling it over. I have no new accounts in the last two years and do not plan to open anything for the next two. I have no inquiries on any bureau. The car I bought in 01/2019 only has 5K miles on it, so I'm not likely to get another auto loan for 10 years.
$100 SSL balance on $35K may be too low. IIRC you want your loan balance to be higher than your monthly payment due amount. If it's lower, your run the risk of early loan forgiveness.
@AllZero, So far ..No forgiveness. Pushing the envelope here
With every lender, it could be a YMMV!
@M_Smart007 wrote:
@AllZero wrote:
@CH-7-Mission-Accomplished wrote:I still may decide to do it. I'm mulling it over. I have no new accounts in the last two years and do not plan to open anything for the next two. I have no inquiries on any bureau. The car I bought in 01/2019 only has 5K miles on it, so I'm not likely to get another auto loan for 10 years.
$100 SSL balance on $35K may be too low. IIRC you want your loan balance to be higher than your monthly payment due amount. If it's lower, your run the risk of early loan forgiveness.
@AllZero, So far ..No forgiveness. Pushing the envelope here
With every lender, it could be a YMMV!
I think you're going to default 
@Anonymous 
@M_Smart007 wrote:
@AllZero wrote:
@CH-7-Mission-Accomplished wrote:I still may decide to do it. I'm mulling it over. I have no new accounts in the last two years and do not plan to open anything for the next two. I have no inquiries on any bureau. The car I bought in 01/2019 only has 5K miles on it, so I'm not likely to get another auto loan for 10 years.
$100 SSL balance on $35K may be too low. IIRC you want your loan balance to be higher than your monthly payment due amount. If it's lower, your run the risk of early loan forgiveness.
@AllZero, So far ..No forgiveness. Pushing the envelope here
With every lender, it could be a YMMV!
Thank you for sharing the screen shot and data points. Good to know that PenFed can be that balance amount.