@CH-7-Mission-Accomplished wrote:
@AllZero wrote:
@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.
Okay so I transferred 30K back to Navy for a SSL. Since they told me they need an actual reason to grant a SSL over 60 months, I told them I'm shopping for raw land to build a cabin. No problem. No questions, docs signed, funds deposited to my checking account. 180 months. 3.25 interest rate. No HP.
Will promptly pay down to $100 balance and pay the minimal interest due each month. Loan matures in 2036. I'm very happy.
Very nicely done! Thank you for sharing the data points.
@CH-7-Mission-Accomplished wrote:Hey All Zero. Thanks for your help. You are an amazing resource on this board and I truly appreciate you and your hard work.
Thank you kindly. It's my pleasure.
@CH-7-Mission-Accomplished wrote:Where I lost is on how utilization works on installment loans. Before I got my auto loan with Alliant for 31K, I had a 20K SSL with them (when they were still doing them) and I had it paid down to $100. Based on advice on this board, from some people I actually trust, I was told to just pay off the $100/$20K SSL and it would make no difference to my FICO scores. That was a very bad piece of advice. I paid off that SSL, they booked the new loan showing 3lK/31K owing and my scores took like a 20 point hit. I paid the auto loan down rocket fast -- paying $1000 to $2000/month (payment was $478) and got it paid off (except $100) in two years, so I now have three years left with only $100 owing and lots of padding.
This is a long way of saying are people correct when they say you are fine as long as you have a reporting installment, like an auto or student loan, and you don't need any kind of padding from a mostly paid off SSL or auto loan? This is an area I raeally don't understand. And my husband has straight 850s on his report and his only installment is 450K owing on a 500K mortgage loan from BECU. We paid off his car loan and he's never had an SSL loan. So clearly it does not penalize you for having a mortgage loan that is only paid down 50K/500K, so 90% owing.
I hope this makes sense. I am advising three or four friends (gratis) on how to maxmize their scores post BK and sometimes info I glean on here does not pan out in real life. I would love your input if you are willing.
Thanks again for all you do. For a job that doesn't pay anything you sure work hard.
@CH-7-Mission-Accomplished There is a difference with installment loans, e.g. mortgage vs non mortgage in relation to balance/loan ratio. I don't recall the exact details but I think a mortgage balance to loan ratio is more forgiving compared to a non mortgage installment loan. I'll post a link if I find it.
I'm unsure if there has been a defined installment loan utilization thresholds for it. I think Revelate stated there is something around ~65-66% and 9% utilization threshold. Installment tradeline utilization thread. and Aggregate Installment Loan UTI DP and FICO scoring on installment loans is anal.
Also, on a fully optimized SSL, most people see a score increase on FICO 8/9s but EX2, TU4, EQ5 may not see any score gain. See Installment loan utilization in mortgage scores.
Reference @Anonymous mega thread. See message 3. A. Utilization. 2. Loans.
For your friends, here is a great read. HOW TO: From BK7 discharge to 700 in 24 months or less!
@CH-7-Mission-Accomplished wrote:Thanks so much zero. I will update my scores once this SSL posts. Oddly when I log in to Navy tonight, this new SSL fixded loan doesn't yet appear, although my available balance on checking is 30K plus. Perhaps it takes them a day or two to book the loand into their computer.
My scores have been very level for months now since my IIB accounts fell off. I will honestly report the effects on each of my various FICO scores once this SSL posts. Standby for updates.....
I would guess it will take a day or so for the SSL to show on your NFCU portal.
It will be interesting to see how it turns out. If you do the SSL paydown before it reports 100% utilization in addition to your all ready optimized auto loan, perhaps there may be no score change?
Thanks to you, I know where to go for my 15 year SSL. 
@AllZero wrote:
@CH-7-Mission-Accomplished wrote:Thanks so much zero. I will update my scores once this SSL posts. Oddly when I log in to Navy tonight, this new SSL fixded loan doesn't yet appear, although my available balance on checking is 30K plus. Perhaps it takes them a day or two to book the loand into their computer.
My scores have been very level for months now since my IIB accounts fell off. I will honestly report the effects on each of my various FICO scores once this SSL posts. Standby for updates.....I would guess it will take a day or so for the SSL to show on your NFCU portal.
It will be interesting to see how it turns out. If you do the SSL paydown before it reports 100% utilization in addition to your all ready optimized auto loan, perhaps there may be no score change?
Thanks to you, I know where to go for my 15 year SSL.
Thanks so much zero. I will focus on the change to each of my score versions with the addition of this new SSL fixed account. Since this is a brand new account I'm sure I will suffer some penalty for age of youngest account. I have no other new accounts or inquiries in the past 24 months. I'm good with a little points loss. I am really curious what it does to my mortgage scores. To be candid, even with a FICO 9 classic Equifax at 841, these mortgage scores are stuck like glew under 730 (one is 744). I will be very surprised if they move up signicantly in the next 2.5 years before the BK public record falls off. We shall see......
@CH-7-Mission-Accomplished wrote:
Thanks so much zero. I will focus on the change to each of my score versions with the addition of this new SSL fixed account. Since this is a brand new account I'm sure I will suffer some penalty for age of youngest account. I have no other new accounts or inquiries in the past 24 months. I'm good with a little points loss. I am really curious what it does to my mortgage scores. To be candid, even with a FICO 9 classic Equifax at 841, these mortgage scores are stuck like glew under 730 (one is 744). I will be very surprised if they move up signicantly in the next 2.5 years before the BK public record falls off. We shall see......
If on a clean score card, I recall @Anonymous mention there is not a huge AoYA penalty for new installment loan account. See New loan awards-"clean/aged/thick/no new acct"
On a derogatory score card, in relation to revolving accounts, one does not get a score penalty for new accounts. I am unsure if it is the same for installment loans.
Once your BK public record falls off, I would imagine you may see an increase on your mortgage scores.