Navy Federal Share Secured Loan

[Anonymous]

Years ago I did the same tatic to add positives to my CR, and it work pretty good. Plus i established a great relationship with NF, and now I get loans pretty easy from them. Also look into their secure credit card. I started with a $500 limit, and after one year it became a unsecure card and then each year I would ask for a limit increase. Now I have my pay check direct deposited into my NF and I'v fincanced cars. Over a ten year periord I went from 500 CS into the 700's. So, U can do it. It didn't take me 10 years, but about 5 or less. 

[Nayola]

Update:  Today we received an alert that the SSL was reporting on my husband's credit report.  His score went up 17 points, 23 points, and 30 points.  I always find it interesting how the different bureaus react differently.

[tonyclem63]

Navy Federal Share Secured Loan

HERE IS HOW IT WENT FOR ME WITH NFCU:

03/11/2019 - Deposited $3,100.00 into my saving account by going to a local branch

03/13/2019 - Went to a local branch, Arrived at 11am, waited about 20 minutes for my turn to see loan officer. Requested a $3,100.00 share secured loan. She asked for my ID. I asked if it would be a hard or soft pull, I was told it would be a hard pull and that membership requests use a soft pull. Note: I have been a member for several years before requesting this loan.

I was asked what terms I was looking for, I told her 60 months. She asked if I wanted auto draft for payments, I said no. I was approved for $3,100.00 at 2.25% APR with a payment of $54.79 per month. Signed the paperwork.

I was given a check in my hand for $3,100.00. I had to sign the back of the check in two places.

I walked over to the teller, had to sign the check a third time and then made the deposit in my savings account.

I walked out at 11:42am

03/13/2019 - No hard or soft pull found on any credit bureau report

03/14/2019 - Made a small $109.58 (two payments) as a test, the date advanced two months ahead. I then made a bulk payment to bring loan balance down to 8%.

That payment advanced the next payment due date 4 years 6 months ahead until 09/2023

I then went to setup a NFCU auto payments of $3.50 per month from my savings account to keep the loan active. That payment would keep the loan from becoming too low a balance that it may end early, yet keep it active monthly.

AUTO PAY NOTE: I encountered a problem setting up auto payments of $3.50 as the NFCU minimum payment is required to be $5.00.

03/15/2019 - AUTO PAY LOAN - Alternately, I setup an automatic bill pay from another bank to pay $3.50 per month on the installment loan for the next 4 years and 10 months. That worked perfectly.

03/15/2019 - Funds not yet released

03/16/2019 - Funds released and available for use

03/16/2019 - Went into credit union branch, applied for secured credit card (they asked if I wanted a Visa or Mastercard) and was approved within 60 seconds.

03/16/2019 - Hard Pull from Transunion for Secured Credit Card

03/16/2019 - FICO went down 2 points based on inquiry and new account.

03/30/2019 - NFCU Installment loan starting reporting Transunion and Experian

03/31/2019 - NFCU Installment loan starting reporting on Equifax

04/01/2019 - Saw 14 point jump on Experien

NOTE: They allow you to send money into savings or Checking or pay loan from external account, but it must be initialted from the external account Example: Wells Fargo to NFCU

They do not allow you to send money out to an external account from your savings, you must move money into a Navy Federal Checking account to send out to a third party external account

SECURED CREDIT CARD NOTE: The NFCU secured card is now reviewed every 6 months for graduation to unsecured status with 12 months being the average graduation to unsecured if account is handled properly.

[AverageJoesCredit]

Great read Tony

I noticed this when i tried to get my cashback into my regular checking..i transfered it my Navy savings account and tried to transfer to my external checking and could not. Transfered to my Navy checking and from there, could transfer to my external checking. Was a learning experience for sure

[Anonymous]

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@AverageJoesCredit wrote:
Great read Tony

I noticed this when i tried to get my cashback into my regular checking..i transfered it my Navy savings account and tried to transfer to my external checking and could not. Transfered to my Navy checking and from there, could transfer to my external checking. Was a learning experience for sure

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If anyone wants to read two recent discussions on how to get money in and out of Navy, I suggest these:

https://ficoforums.myfico.com/t5/Personal-Finance/How-to-deposit-into-Navy-Federal-Savings-without-h...

https://ficoforums.myfico.com/t5/Personal-Finance/How-to-deposit-to-NFCU/td-p/5562187

A simple strategy is to add Navy to your external bank accounts.  (I.e. if Chase is your external bank, log on to Chase and add your Navy checking to Chase as an external account.)  Then you will be able to use Chase to push and pull money from Navy -- you just do it from Chase rather than Navy.  (Doesn't have to be Chase -- it could be Discover or tons of other banks or CUs.)

[AverageJoesCredit]

Thanks Credit Guy, will read up

[Anonymous]

Hi 

I opened ssl account last year.  I have  around 6,000 personal loan plus credit cards two of them 8,000. I am a student and really don’t want to use my saving to just pay them off so, I was thinking to pay off my ssl, get another one to pay these off , so that way I just have to pay for my new ssl and also keep my savings. I really need some help making decisions or if it is a smart move.  I  want to Bring up my current score for job purpose.  Appreciate your help!! 

[Anonymous]

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@Anonymous wrote:

Hi 

I opened ssl account last year.  I have  around 6,000 personal loan plus credit cards two of them 8,000. I am a student and really don’t want to use my saving to just pay them off so, I was thinking to pay off my ssl, get another one to pay these off , so that way I just have to pay for my new ssl and also keep my savings. I really need some help making decisions or if it is a smart move.  I  want to Bring up my current score for job purpose.  Appreciate your help!! 

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We'll need more details in order to give you advice about how to bring your scores up.

First do you know any of your FICO scores? Scores from places like CreditKarma aren't necessarily accurate nor are they useful. The scoring model they use, Vantage, is not used by most lenders. A handy place to find them is through Credit Check Total $1 trials. Just cancel before the trial period ends.

Also a list of what's on your reports would help. Accounts, their ages, limits, balances, late payments, collections....

One thing I can say is that an SSL isn't going to help everyone. Those who it is best for are those with no other open installment loans on their reports. For them having the loan gives a small boost for "credit mix" and even more for having it paid down to less than 8.9%.
For those with other open loans it may not help much or even hurt their scores as opening one lowers their average age of your accounts.

[tonyclem63]

So here is my follow-up. . . My secured loan is just trudging along adding stability and points to my credit score. It is set to mature in and has a next payment dues of 2023, yet I am bill paying $3.25 per month on it from another account to keep it active and to slowly pay the remainder (of approximately $240) down over time. It has worked like a charm.

Additional follow-up. . . My secure NFCU credit card (which reports as unsecured of credit reports) went unsecured 6 months to the day after I opened it. The money just mysteriously reappeared in my savings account with no notice. NOTE: I am a little pissed though (maybe I am just being ungrateful) as I wanted notice of the pending change so I could boost the security deposit up significantly right before they made the card unsecured at the limit of the security deposit. . . Ah well, this place is so so so amazing. I still have a Wells Fargo account, but no back or CU has ever been as nice a good (in the life) as NFCU has been. I am a BIG fan!

BTW: I had gotten in a long time ago through an organization which they no longer offer membership through. I originally opened the savings account with a long-term plan of hiding $10 a month from myself at several credit unions . . . That was maybe 5-7 years ago. I sure am glad I did as I understand it is nearly impossible to get in now without military service or a direct family member being a member.

ANOTHER NOTE: I have been helping my youngest daughter with her credit and finances. . . I got her in, got her a secure card and will soon do the loan thing for her . . . This is such an amazing company, I really love this place. Thanks for reading

[Carolinagirl007]

Thanks for the advice. It worked very well. As instructed, I got a Navy Federal Secured Loan for $3010. No credit check. Opened a separate savings account to deposit the secured money in and set up a second checking account so that they could place the loan amount in this checking account. I called Navy Federal and applied by phone. Within 30 minutes I was approved and elected to sign electronically. They then secured my $3010 in the savings about 30 minutes later (meaning I no longer had access to it). Later but on the same day, the loan amount of $3010 was placed in my checking account. The next day the loan showed up on my accounts so that I could then pay it off. I took $2800 of the loan and paid the balance down to $210 pushing my next due date to early 2024. Then 48 hours later, my $2800 was returned to me. My score went up 42 points. It worked!!! Thanks so much!!!