Navy or Penfed still work for SSL technique?

[masscredit]

NFCU is mentioned often here. How about PENFED?  Both of these were IIB so I figured I wouldn't be able to have a relationship with either lender for the rest of my life. I was reading a post earlier so I decided to sign into each of my accounts to check them out. There is limited access in my NFCU account. I have full access on PENFED so I tried their pre-qualification page for a credit card. That was declined. I then jumped over to their personal loans. I put in $3500. Not only was I approved for that, they approved me for $5200. The rates range from 14.49 - 15.49% (ouch!@). But... I looks like I have a chance with them. My current SSL is with Andrews CU. I couldn't pay that down without changing the term of the loan. It will be paid off in November. I'll only have a few months with it below 9%. I don't need a loan so I'm planning ahead for what I'll do when this is paid off. 

So for personal loans, PENFED doesn't list a SSL on their site. Anyone know if it's still available or if the regular load can be paid down without changing the term of the loan?

[FicoMike0]

I just did a ssl at penfed in febuary. They don't advertise it on their webpage. You have to call and ask. First you have to deposit the loan balance in a regular savings account, the one that pays 0.5%. You have to leave it there for at least 30 days. They will do the loan for a minimum of $25 X the term in months. That's $1500 for 60 months. I think they may go as long as 120 months. After the money ages, call them to do the loan. The loaned money shows up in the savings account. One day, balance $1500, the next, $3000, only $1500 withdrawalable.  I moved the $1500 to another savings account. Once the loan is set up you can make payments online. It says to call to make a principle only payment, don't do it! That shortens the loan term. Just pay it down online as if it was a normal payment.

It worked fine for me, 30 - 40 point gain.

[masscredit]

@FicoMike0  I meant to thank you for the detailed info after you posted it. Thanks! I'm getting ready to get an SSL with them. Will be depositing money into my savings account to let it sit for 30 days then I'll contact them for the loan. Is it a HP or SP? I think SSLs tend to be soft.

And when it comes to SSLs, is a higher amount helpful when it comes to showing experience with a larger loan? Like how you are more likely to get a card with a $20K limit if you have other cards in that range. I'll mainly be happy with continuing the scoring benefits of having a loan under 9% (my other one will be paid off in Nov) but I'll take any other benefits too.

[Horseshoez]

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@masscredit wrote:

@FicoMike0  I meant to thank you for the detailed info after you posted it. Thanks! I'm getting ready to get an SSL with them. Will be depositing money into my savings account to let it sit for 30 days then I'll contact them for the loan. Is it a HP or SP? I think SSLs tend to be soft.

And when it comes to SSLs, is a higher amount helpful when it comes to showing experience with a larger loan? Like how you are more likely to get a card with a $20K limit if you have other cards in that range. I'll mainly be happy with continuing the scoring benefits of having a loan under 9% (my other one will be paid off in Nov) but I'll take any other benefits too.

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SSLs of $3,000 (some say $3,001 ) has been argued here many times as being the sweet spot; below that there are some duration issues when it comes to the term of the SSL, above that and there is virtually zero benefit.

I haven't used NFCU's SSL, but the one I used from PenFed was a soft pull.

[FicoMike0]

I haven't seen any indication that the amount of the loan has any impact on credit score. The amount needs to be enough to get the loan term you want. I've seen the $3001 amount mentioned as the requirement for a 60 month loan with nfcu. Penfed, who doesn't advertise they even do a ssl, has a simple requirement, $25/ month min payment. So with them, the amount is $25 X loan term, in months. $1500 for 60 months, $3000 for 120 months.

A new issue has been reported with penfed, auto early loan forgiveness. Some have reported that penfed has forgiven loans with as much as a $65 balance. Ordinarily, that would be a good thing. With a ssl with a $50 balance and no payment due for several years, not so much. I had planned to set up auto payments of say, $2/month, to pay it on time without effort. This would bring my balance down to $48 two years before the final payment. Since I don't want it canceled due to forgiveness two years early, I'm not doing that. I'll have to check and see if I can set up auto pay to start in about six years.

[burrissa]

Does the Penfed SSL have to be from the regular savings account or can it be from the premium online savings? The reason I ask is because I just transfered funds from the regular to th premium last week. Does the 30 day countdown start over if I transfer it back to the regular savings?

[Horseshoez]

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@burrissa wrote:

Does the Penfed SSL have to be from the regular savings account or can it be from the premium online savings? The reason I ask is because I just transfered funds from the regular to th premium last week. Does the 30 day countdown start over if I transfer it back to the regular savings?

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If memory serves, it is from a Regular savings account.  That said, I think you can make a case for the 30 day aging period to start when the money first hit any of your PenFed accounts.  Sounds like it is time for you to call their Customer Service and ask.  Please let us know what you find out.

[Patient957]

The longest SSL term PenFed will do is 142 months.  For that term, a loan amount of $3150 comes to exactly $25 per month.  The interest rate is 2% or maybe 2.05%, can't remember.  The phone rep will help you figure out the numbers for whatever term you want.

[masscredit]

When people get these loans and stretch them over a long period of time, does the bank rep ask what the purpose is?  Or do they know it's "just to have a loan"? 

And why do they have the policy of funds have to be in the account for 30 days? 

[FicoMike0]

Why?, I don't know.

With penfed, the colateral has to be in regular savings for 30 days. She didn't ask me why I wanted the loan.