Navy Federal SSL Threshold

[Anonymous]

New Navy Fed member here taking advantage of the SSL technique. One question, I keep seeing different thresholds in which people pay down to intitially. Is there a difference between paying it down to 5-8.9%? I got a 60 month loan for $3001, thank you for the help

edit: Ideally id like to pay it down as much as possible, just wanna make sure I don't "ruin" the loan.

[tcbofade]

Good morning.  Pay it down to under 8.9% and you'll see a nice score boost on Fico 8 models.

...going under 5% MAY provide another boost on some score models... 

[Anonymous]

So you're saying I can even pay down under 5%? I haven't heard that before.

[SouthJamaica]

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@Anonymous wrote:

New Navy Fed member here taking advantage of the SSL technique. One question, I keep seeing different thresholds in which people pay down to intitially. Is there a difference between paying it down to 5-8.9%? I got a 60 month loan for $3001, thank you for the help

edit: Ideally id like to pay it down as much as possible, just wanna make sure I don't "ruin" the loan.

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I once got the impression, after paying a loan down to 9%, that then paying it down to 5% got me another bump, much smaller though.

But I didn't have the daily monitoring then which would have helped me pin it down.

[SouthJamaica]

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@Anonymous wrote:

So you're saying I can even pay down under 5%? I haven't heard that before.

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Sure you can.

I have one now that's below 5%.

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

So you're saying I can even pay down under 5%? I haven't heard that before.

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You can pay it down to $1, but I would not advise it.   It costs lenders money to manage accounts and if the amount you owe is less than it's worth their bother, they will simply zero out the account, which ruins your plan.    I had this happen to me recently with another lender.   I paid off my loan to $50 with three years left to go and they zeroed out the loan thinking they did me a favor.  My FICO scores dropped 20 points.

Lenders do not offer loans for the sake of helping you with credit mix and utilization.   They make loans to make money.   If they are not making any money off of you they may decide to cut their losses and just credit the account and close it.   There is nothing stopping them from doing that.

[Guyatthebeach]

Pay it down to 5.0% because of the scoring changes in TU8 and TU9 models.

I don't have a SSL anymore because I have 2 car loans. I noticed a 15 point increase on my TU Fido and 10 point increase on my Equifax Fico when I keep my credit card debt between 1 and 5%.

Guyatthebeach

[CH-7-Mission-Accomplished]

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@Guyatthebeach wrote:

Pay it down to 5.0% because of the scoring changes in TU8 and TU9 models.

I don't have a SSL anymore because I have 2 car loans. I noticed a 15 point increase on my TU Fido and 10 point increase on my Equifax Fico when I keep my credit card debt between 1 and 5%.

Guyatthebeach

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Quick question.   Does the difference between FICO 8 and FICO 9 happen because you went from 7.9% to 5%?   I hadn't heard about this before.   If this is the case, which version gives you points for the 7.9% and which requires the paydown to 5%?   Thanks.