@Anonymous wrote:
@spiritcraft1 wrote:This works like a charm! Mine was a 60 month deal and is a 2023 date. I may, at some point, pay it off and start all over again. I hope this program stays around in its current form. By the way, their Auto loans work the same way. My Daughter was going to buy a car with cash but I had her do a loan at NFCU and pay it right down... her next payment is late 2023.
Smart move! (No pun intended 😉)
Sorry. I'm new to the SSL game. If I am reading these threads correctly, you're taking out a secured loan against your savings. For easy math sake, $10,000 in savings. I assume if you pay back above 8.9%, your loan will become due? Also, if your payment is below 8.9%, you basically get a $900 loan that won't become due until 2023 if you make the first 91.1% payment before the APR fee hits? Wouldn't that mean you have to have $9100 in cash elsewhere to make the first payment?
In summary, if you have $10k in cash and would like to extract $900 out of it for three years interest free, take out an SSL. Am I close? It seems like a lot of work to get 10% of your savings for 3 years. I'm trying to find an example where I would go down this path.
Sorry for the math. I think I put a little too much whisky into my irish coffee. 
@adelphi_sky wrote:
@Anonymous wrote:
@spiritcraft1 wrote:This works like a charm! Mine was a 60 month deal and is a 2023 date. I may, at some point, pay it off and start all over again. I hope this program stays around in its current form. By the way, their Auto loans work the same way. My Daughter was going to buy a car with cash but I had her do a loan at NFCU and pay it right down... her next payment is late 2023.
Smart move! (No pun intended 😉)
Sorry. I'm new to the SSL game. If I am reading these threads correctly, you're taking out a secured loan against your savings. For easy math sake, $10,000 in savings. I assume if you pay back above 8.9%, your loan will become due? Also, if your payment is below 8.9%, you basically get a $1100 loan that won't become due until 2023 if you make the first 91% payment before the APR fee hits? Wouldn't that mean you have to have $9100 in cash elsewhere to make the first payment?
In summary, if you have $10k in cash and would like to extract $1100 out of it for three years interest free, take out an SSL. Am I close? It seems like a lot of work to get 10% of your savings for 3 years. I'm trying to find an example where I would go down this path.
My Case:
I opened a $5,001.00 SSL with NFCU in September 2018. The process took 15 minutes over the phone. I already had the $5,001.00 sitting in my saving account to fund the loan. The loan was processed in a couple hours and the $5,001.00 moved from my Savings to the new loan. Then, the $5,001.00 came back into my savings account as my loan proceeds. I waited a day or two and paid the loan down to $425.00 or so which was about 8.5%. Then the difference came back into my savings account within a day or two. So my savings actually ended up having $425.00 less in it than it had 5 days prior. No additional funds needed, no HP etc. I received about a 21 point FICO boost on average and it will continue boosting my scores until August 2023 or something.
This is the biggest no brainer in the history of credit repair as it ALSO boosts your internal NFCU score.
@Anonymous wrote:@adelphi_sky these are generally only used for people who do not have any other type of installment loan reporting and also tend to be more in line for people rebuilding their credit. Your FICO scores take a penalty for not have an installment loan reporting so this helps with scoring. Take me for example, after my bankruptcy i had no cards or loans. I opened 3 cards for optimal scoring but needed a loan to not be penalized for no "credit mix". I opened a Navy Federal SSL for just over $3,000 on a 60 month term. After it reported i paid the balance down to 8% utilization (which will give me the best bump for scoring) now i only owe about $240 dollars on the loan and there is no payment due for almost 5 years because Navy doesn't make the next payment due the following month they will actually just push them out. So for $240(kept secured until my loan pays off) I'll have a loan reporting on time for the next almost 5 years with no effort which will help my score and credit history. I did have to have the cash up front to secure the loan, which was no problem for me, but once you make the payments toward your loan that money becomes available again in your savings for you to use as you please.
It also worked for my Daughter on a NFCU car loan. She got a 100% 48 month car loan in late 2019, paid it down to 3% and it boosted her mid 700 scores by 20 points since she had no other installment loan reporting. Her next payment shows 2023 and it knocked almost all of the interest out of the loan. She will then have a paid off car loan on her report for another 10 years.
@Anonymous wrote:@adelphi_sky these are generally only used for people who do not have any other type of installment loan reporting and also tend to be more in line for people rebuilding their credit. Your FICO scores take a penalty for not have an installment loan reporting so this helps with scoring. Take me for example, after my bankruptcy i had no cards or loans. I opened 3 cards for optimal scoring but needed a loan to not be penalized for no "credit mix". I opened a Navy Federal SSL for just over $3,000 on a 60 month term. After it reported i paid the balance down to 8% utilization (which will give me the best bump for scoring) now i only owe about $240 dollars on the loan and there is no payment due for almost 5 years because Navy doesn't make the next payment due the following month they will actually just push them out. So for $240(kept secured until my loan pays off) I'll have a loan reporting on time for the next almost 5 years with no effort which will help my score and credit history. I did have to have the cash up front to secure the loan, which was no problem for me, but once you make the payments toward your loan that money becomes available again in your savings for you to use as you please.
Ah. Thanks. Now I can go back to my Irish coffee.