cancel
Showing results for 
Search instead for 
Did you mean: 

Navy Federal Share Secured Loan

New Contributor

Navy Federal Share Secured Loan

I'm thinking of signing up for a Navy Federal shared secured loan at 2% interest.  $250.  60 months term.  Monthly payment is $4.38.  Reports to all three credit bureaus.  Total interest is about $12.

 

This is the most cost effective way to get an ssl that I have found.  I can deposit the money and get the loan immediately.  I don't have to hold the money in the savings account for 30 days and wait to get the ssl.  The money is locked into the account and is released as the loan is payed off.  No credit check. 

 

This should work to improve my credit score.  That's why I want the loan.  Does anyone have a better alternative?

Start: Fico 8 EQ 672, TU 660, EX 668 01/13/2018
Current: Fico 8 EQ 690, TU 672, EX 685 02/04/2018
34 REPLIES
Super Contributor

Re: Navy Federal Share Secured Loan


@wrote:

I'm thinking of signing up for a Navy Federal shared secured loan at 2% interest.  $250.  60 months term.  Monthly payment is $4.38.  Reports to all three credit bureaus.  Total interest is about $12.

 

This is the most cost effective way to get an ssl that I have found.  I can deposit the money and get the loan immediately.  I don't have to hold the money in the savings account for 30 days and wait to get the ssl.  The money is locked into the account and is released as the loan is payed off.  No credit check. 

 

This should work to improve my credit score.  That's why I want the loan.  Does anyone have a better alternative?


It's only going to really improve your scores if you can pay the loan down to 9% of the amount of the loan, and they don't advance the payment dates.

FICO8 EQ 774 TU 794 EX 772
Message 2 of 35
Community Leader
Super Contributor

Re: Navy Federal Share Secured Loan

SouthJ is absolutely right.  The key idea for the Share Secure Loan Technique working is the ability to pay off almost the entire loan very early in the life of the loan and yet still keep it open for the full term.

 

I encourage our OP to read the first two posts in that thread so that he understands what it is that he's trying to do.  He can also glance through post 3 to see how it worked (step by step) at Alliant, though that CU no longer offers SS loans.

 

I'd be most grateful to our OP if he would open the loan and execute the pay down much as described in that thread.  Then let us know if the paydown pushed his next payment due date out several years and if so how far.  More than one person had success doing that in the past with Navy Fed.  Specifically contributor Glen_M has reported success with them.

Message 3 of 35
New Contributor

Re: Navy Federal Share Secured Loan


wrote:

SouthJ is absolutely right.  The key idea for the Share Secure Loan Technique working is the ability to pay off almost the entire loan very early in the life of the loan and yet still keep it open for the full term.

 

I encourage our OP to read the first two posts in that thread so that he understands what it is that he's trying to do.  He can also glance through post 3 to see how it worked (step by step) at Alliant, though that CU no longer offers SS loans.

 

I'd be most grateful to our OP if he would open the loan and execute the pay down much as described in that thread.  Then let us know if the paydown pushed his next payment due date out several years and if so how far.  More than one person had success doing that in the past with Navy Fed.  Specifically contributor Glen_M has reported success with them.


The CSR from Navy Federal says the payment will be pushed back if I pay more than one month.  If I pay 4 months, then my next SSL payment will be due in 5 months. 

 

The previous CSR I spoke with was wrong.  The $250 SSL is not available at a 60 month term.  A $3000 SSL is available at a 60 month term, but I don't have $3000.  At $250 and up to $500, it is a 6 month term.  From $501-$1000, it is a 12 month term.  The term increases from there as the amount increases. 

 

It is also the savings APY of .25%+2% for 2.25% interest.  So $250 at 6 months at 2.25% interest.  Payments are $41.97. 

 

My savings account was already set up but I did not have $250 in it.  They took my $155 from a credit card today to make my balance $250 and signed me up for the SSL all in about 30 minutes.  (I thought that was cool that they did all of that at the same time.  They did not wait for the credit card payment to post first.)

 

They said the loan was approved after a 5 minutes hold.  No hard inquiries.  They said normally they mail a check for the $250 to me, but they made an exception and deposited the $250 into my checking account that I have with them while I was on the phone.  (That was also cool of them.)

 

They said the paperwork should be complete next week, maybe by Tuesday.  I will go online and pay down the loan then.  I will report what happens.

Start: Fico 8 EQ 672, TU 660, EX 668 01/13/2018
Current: Fico 8 EQ 690, TU 672, EX 685 02/04/2018
Message 4 of 35
Regular Contributor

Re: Navy Federal Share Secured Loan

wrote:

You can get a Shares Pledged Loan with NFCU in a few minutes.  I got mine over the phone and it was very easy.  The only pulls NFCU did for me were for membership, and when I opened a credit card.  The lady you spoke to at the branch is probably just unfamiliar with them because the average person probably never gets one.  The ladies I spoke to at the service center didn't 'bat an eye' at the mention of a secured loan or why I would want one - knew exactly how to get it done.

 

I described getting mine in the big thread on SSLs, it starts at 976:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

Follow up's at 1028, 1044, 1072, 1147, 1150, 1198 the last one shows the end results.   You might want to consider opening yours near the end of the month so you can predict when the results/effect will be seen on your report - that was the only quirk I noticed.

 

There are some limits on the length of the term if you're aiming for a small amount, but if you're willing to start big, you can get a much longer term than most others offer (up to 15 years).  NFCU also has the advantage of not forcing you to muck around with an automated payment that you'll have to cancel.

 ...

 

It sounds like the OP may need to repeat the process in the not too distant future to maintain the scoring lift.  If nothing else, this could just be one more reason to put away a bit of cash savings.  That's a generally good fiscal tool to have on hand anyway.  Given the mechanics of the SSL technique, most of it becomes available after a short time, so it isn't an onerous burden.

 

After making small monthly payments, just for the sake of peace of mind in maintaing activiy, I've seen the next due date roll ahead another month, still out in 2021.

 

 


Message 5 of 35
Super Contributor

Re: Navy Federal Share Secured Loan


@wrote:
wrote:

You can get a Shares Pledged Loan with NFCU in a few minutes.  I got mine over the phone and it was very easy.  The only pulls NFCU did for me were for membership, and when I opened a credit card.  The lady you spoke to at the branch is probably just unfamiliar with them because the average person probably never gets one.  The ladies I spoke to at the service center didn't 'bat an eye' at the mention of a secured loan or why I would want one - knew exactly how to get it done.

 

I described getting mine in the big thread on SSLs, it starts at 976:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756/page/98

Follow up's at 1028, 1044, 1072, 1147, 1150, 1198 the last one shows the end results.   You might want to consider opening yours near the end of the month so you can predict when the results/effect will be seen on your report - that was the only quirk I noticed.

 

There are some limits on the length of the term if you're aiming for a small amount, but if you're willing to start big, you can get a much longer term than most others offer (up to 15 years).  NFCU also has the advantage of not forcing you to muck around with an automated payment that you'll have to cancel.

 ...

 

It sounds like the OP may need to repeat the process in the not too distant future to maintain the scoring lift.  If nothing else, this could just be one more reason to put away a bit of cash savings.  That's a generally good fiscal tool to have on hand anyway.  Given the mechanics of the SSL technique, most of it becomes available after a short time, so it isn't an onerous burden.

 

After making small monthly payments, just for the sake of peace of mind in maintaing activiy, I've seen the next due date roll ahead another month, still out in 2021.

 

 


Repeating the process would mean another new account, which would mean (a) decreasing average age of accounts and (b) decreasing age of newest account, both drags on one's scores.

FICO8 EQ 774 TU 794 EX 772
Message 6 of 35
New Contributor

Re: Navy Federal Share Secured Loan


@wrote:

wrote:

SouthJ is absolutely right.  The key idea for the Share Secure Loan Technique working is the ability to pay off almost the entire loan very early in the life of the loan and yet still keep it open for the full term.

 

I encourage our OP to read the first two posts in that thread so that he understands what it is that he's trying to do.  He can also glance through post 3 to see how it worked (step by step) at Alliant, though that CU no longer offers SS loans.

 

I'd be most grateful to our OP if he would open the loan and execute the pay down much as described in that thread.  Then let us know if the paydown pushed his next payment due date out several years and if so how far.  More than one person had success doing that in the past with Navy Fed.  Specifically contributor Glen_M has reported success with them.


The CSR from Navy Federal says the payment will be pushed back if I pay more than one month.  If I pay 4 months, then my next SSL payment will be due in 5 months. 

 

The previous CSR I spoke with was wrong.  The $250 SSL is not available at a 60 month term.  A $3000 SSL is available at a 60 month term, but I don't have $3000.  At $250 and up to $500, it is a 6 month term.  From $501-$1000, it is a 12 month term.  The term increases from there as the amount increases. 

 

It is also the savings APY of .25%+2% for 2.25% interest.  So $250 at 6 months at 2.25% interest.  Payments are $41.97. 

 

My savings account was already set up but I did not have $250 in it.  They took my $155 from a credit card today to make my balance $250 and signed me up for the SSL all in about 30 minutes.  (I thought that was cool that they did all of that at the same time.  They did not wait for the credit card payment to post first.)

 

They said the loan was approved after a 5 minutes hold.  No hard inquiries.  They said normally they mail a check for the $250 to me, but they made an exception and deposited the $250 into my checking account that I have with them while I was on the phone.  (That was also cool of them.)

 

They said the paperwork should be complete next week, maybe by Tuesday.  I will go online and pay down the loan then.  I will report what happens.


I paid down the loan to $15.06 and that extended my payment out to 08/18.  It works.

Start: Fico 8 EQ 672, TU 660, EX 668 01/13/2018
Current: Fico 8 EQ 690, TU 672, EX 685 02/04/2018
Message 7 of 35

Re: Navy Federal Share Secured Loan

Do none of the secured loans with the banks with say Citi, Chase work like the ssl with Alliant? What's the usual issue with banks if anyone knows?
Message 8 of 35
Community Leader
Super Contributor

Re: Navy Federal Share Secured Loan

Most of the banks and CUs we have researched do not permit the borrower to pay off most of the entire balance at month 1 and keep it open for the full length of the loan.  If you can find exceptions, please let us know!

Message 9 of 35
Super Contributor

Re: Navy Federal Share Secured Loan


@wrote:

Most of the banks and CUs we have researched do not permit the borrower to pay off most of the entire balance at month 1 and keep it open for the full length of the loan.  If you can find exceptions, please let us know!


My Chase auto loan did that.

 

 

FICO8 EQ 774 TU 794 EX 772
Message 10 of 35