cancel
Showing results for 
Search instead for 
Did you mean: 

Navy Federal Share Secured Loan

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Member

Re: Navy Federal Share Secured Loan

I just opened a Navy Federal savings account online and managed to fund an ititial amount of $100 through my debit card on my BOA account. I'll keep adding over the next couple of weeks, then apply for the ss loan.

Message 41 of 63
Established Contributor

Re: Navy Federal Share Secured Loan

Just a heads up on the Navy secured technique. Once you get down to $3, Navy will forgive that amount and close your loan with no notice. This can happen earlier than you expected and your scores will take a hit. Opening up a new loan will take another month or two to report.

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
Message 42 of 63
Super Contributor

Re: Navy Federal Share Secured Loan


@stinastina wrote:

Just a heads up on the Navy secured technique. Once you get down to $3, Navy will forgive that amount and close your loan with no notice. This can happen earlier than you expected and your scores will take a hit. Opening up a new loan will take another month or two to report.


 

Yes.  This is a risk with any lender (not just Navy).  My advice has always been to always keep your loan balance:

 

(a) Greater than $20... AND

(b) Greater than the original monthly payment

 

Thus if the original monthly payment was $36.23, I'd make sure the balance always stayed above $38.01.  If the original payment was $13.23 I'd keep the balance above $20.01.

 

I had a wise customer service rep with my student loan handler who first gave me that practical advice when I was paying down my 43k student loan and wanted to keep it open forever.

Message 43 of 63
Regular Contributor

Re: Navy Federal Share Secured Loan

Sorry, just seeing this. If you still need help let me know.

 

-The tag (@) you used was incorrect and did not alert me.

Current Open: NFCU AMEX $6,800 CL | Chase Freedom $3,800 CL | QS1 $1,300 CL | BankAmericard $24,000 CL (AU) | NFCU SSL $3,000 |
FICO 8 EXP, EQ, TU: 675-715 (depending on Utl.) | AAoA 3 Years 3 Months | AoYA 0 Months

Closed: American Honda Finance Installment $16,000 paid satisfactorily | Capital One Secured $700 paid satisfactorily | Wells Fargo credit card $3,000 paid charge off settled less than full amount (badie 2015) | Bank of America credit card $1,000 paid charge off settled less than full amount (badie 2015)
Message 44 of 63
Super Contributor

Re: Navy Federal Share Secured Loan


@CreditGuyInDixie wrote:

With most lenders you can make a payment from an external bank into your loan account.  So normally it wouldn't have to be a payment from Bank X's checking to Bank X's loan account.

 

But I think I may have seen a post about how Navy doesn't let you push money from an external account into one of its loans or credit cards.  If so, then a $3 payment every month between now and month 58 seems reasonable.  Then pay it off on month 59.

 

$4/mo might cause the balance to get too close to $0.  When a loan balance gets too low (e.g. $20) some lenders will just forgive the remainder rather than keeping the loan open.


@Correction @CreditGuyInDixie

 

NFCU lets you pull external transfers into your loan and credit card accounts.

 

It just doesn't let you pull external transfers into your deposit accounts, for some strange reason.


Total revolving limits 720500 (594000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 45 of 63
Super Contributor

Re: Navy Federal Share Secured Loan

Thanks SouthJ!

Message 46 of 63
Frequent Contributor

Re: Navy Federal Share Secured Loan

I just finished setting up an SSL with NFCU myself.

I had a little bit of a speed bump along the way. The first CSR I spoke with told me that $3000 would be enough for the 60 month term. I specifically asked him if I needed to put down $3001 and he assured me, no. The next day I get a call back with approval for $3000 for 36 months. That CSR told me that I would need $5000 if I wanted the full 60 months. So I declined and made a transfer for the additional funds. Once the money was in place I called back. They reused my previous application, put me on hold a couple times for five minutes to confirm with a loan officer, then approved me for full 60 months this time. I feel like the first CSR was just mistaken and I only needed the $3001. I didn't want to draw attention to myself though by arguing over a dollar and I had the extra cash to cover it fortunately.  

 

The first big payment is pending and then I just need to set up a small auto pay to keep it active.

 

I'd like you thank you all for the great advice here. With this taken care of and my 3 CCs, I'll be off to the garden for a while.

 

 







Message 47 of 63
Frequent Contributor

Re: Navy Federal Share Secured Loan

It may be relatively trivial amounts but I went ahead and paid $5000 SSL down to $325. 
If I'm doing my math correctly, $325 x 2.25% interest ÷ 365 days means I'm paying 2¢ per day in interest and $36.50 over the 60 month term of the loan.
I wasn't sure how the rounding was going to work and with $445 (8.9% of 5000) I was closer to 3¢ per day in interest and > $50 over the loan term.

I still feel that it's comfortably above the $87 montly payment so in no danger of having the loan closed early.

 

I'm probably over thinking it for a savings of $14.







Message 48 of 63
Frequent Contributor

Re: Navy Federal Share Secured Loan

The SSL hit my reports a few days ago and with no other changes I saw Experian FICO 8 jumped 22 points.







Message 49 of 63
New Contributor

Re: Navy Federal Share Secured Loan

My husband just set up a Share Secured Loan with Navy.  He put $3051.00 into his savings account.  Once that showed up as available, he called Navy and requested a loan for $3001.00.  They approved the loan and set it up and the money was available probably within less than 24 hours.  He then paid it down to $240.  This pushed the next payment to 6/27/2023.  I will update this post when we see what happens with his credit score.

Message 50 of 63
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.