New quest for SSL loan that can be paid to 8.9% and payments extended (that's NOT Navy or PenFed)

[User1492]

I'm looking for a bank/CU that still allows the SSL loan technique that's NOT Navy or PenFed (apparently the only 2 currently verified to still work)

Even though they are the 2 best known banks that still allow the SSL technique (pay loan to 8.9%, payments extended multiple years into the future), unfortunately I burned both of them in a bankruptcy 9 years ago.  And although both will allow me basic checking/savings accounts, neither will approve even a secured loan for me (unless I payoff $30K BK discharged debt with them). I funded for the necessary amount of the accounts and submitted the SSL loan applications, but underwriting denied since I'd caused them a loss. I make various attempts to convince them otherwise but all failed. 

Can rule out SSFCU.  I just funded and attempted with them, but found out the hard way that they just changed their policies within the last year, and don't allow payments to be extended more than a 3 months maximum anymore.  SSFCU had seemed promising, according to posts from 2021, but after funding an account with them, and opening a $10.1K 10 year SSL with them, prepayment would only extend the payment date by a maximum of 3 months.  And finally I reached a loan officer who confirmed they'd changed their policies on this within the past year and capped payment date extensions at 3 months.  Very sad.

Obviously Alliant stopped issuing theirs 5+ years ago

SDFCU and DCU occasionally get mentioned, but doesn't sound like anyone has confimed that they currently work for SSL technique. Some posts even seem to confirm that they definitely don't.  

Does anyone have any solid/verified alternatives to Navy/PenFed for banks that issue SSL's that will extend payment deadlines multiple years with prepayment?

And as an alternative, if not an SSL, does anyone know of a bank that issues unsecured personal loans that will extend payment deadlines multiple years with prepayment?  (Obviously not ideal, because unsecured loans require an HP, and the interest rate is typically 3-4x that of an SSL.  So even when paid to 8.9% or 5% of loan value, yearly interest of 9-12% on principle starts to add up...)

Many thanks!

[FicoMike0]

Interesting quest. 

I seem to recall someone mentioning another cu that would allow prepayment of an unsecured personal loan without advancing the payment schedule. As you pointed out, that would be less desirable than an ssl, but might still appeal to some. 

My ssl is paid to <$189, so it's costing me <$189 X (0.0205/12)=~$0.32/month. A simular loan at 12% would cost $189X.01= $1.89/month.  

[User1492]

Yeah certainly not the end of the world to be paying $25/yr for a 20-30 point score boost.  Although, I'd read reports of some banks closing loans with principle under $100, so I'd been thinking to pay it to $250-300 just to be safe, which would be more like $35ish/yr @12%.   Probably still worth it, but not ideal. 

I should have mentioned, Alliant seems to be the only confirmed bank that does unsecured loans that extend the payment date into the future without limits.  Although the confirmations for that are all from at least a few years ago, so uncertain.

DCU was also mentioned in another thread in 2024, but someone reported "I looked at DCU, they have a ssl ( you borrow your own money), but they shorten the term if you pay it down." so appears DCU isn't a viable option.

SDFCU is occationally mentioned, but there don't seem to be any confirmations of whether they extend the payment due date multiple years.  Maybe someone has confirmation on whether or not they do?

So still looking.  Current best bet is an Alliant unsecured, but still looking for a recently confirmed alternative, since getting approved for unsecured loans can itself be a touchy process and would be good to have multiple options.

[FicoMike0]

I couldn't find anyone other than pen and navy. I also read that penfed has been known to forgive the remaining balance when under $50. I went with penfed, they'll do the loan for half the amount navy requires. To postpone any early forgiveness, I went with 7 years and plan to keep the balance just under 9% ($189) until the next payment is due, in 2030. Then, the balance will decrease $25/ month, so, I might lose a couple of months.

[User1492]

Yup.  PenFed and Navy are the only two banks that are currently known to be confirmed to issue loans with unrestricted due date extension.  Such a shame I can't get back in with either of them.  But there are so many credit unions out there, there MUST be one or two more that do it.   Hoping someone reads this that found an alternative to Navy or PenFed.

Since you did PenFed, why did you only do it for 7 years (84 month term), when you could have easily done it for their maximum of 142 months?  The monthly cost to service the loan after it had been paid down to $200 would be the same for 142 mo as for 84 mo.  And supposedly they only require an initial deposit of $25/mo of term, so would have only tied up approximately $3,550 for a month while it "seasoned" and then you would have gotten it all but the $200 back, just like with the 84 mo loan....the benefit of doing it for 142 months would be that it's 5 more years to put off having to do it again, and reduces the frequency of having to take the minor new account point penalty during the first year after loan issuance...  

[FicoMike0]

Fair point, I could have gone longer. My perspective may be different from others, since I'm 73. My house and cars are paid for, I don't expect to be seeking credit. This is mostly a hobby for me.

[Patient957]

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@User1492 wrote:

Yup.  PenFed and Navy are the only two banks that are currently known to be confirmed to issue loans with unrestricted due date extension.  Such a shame I can't get back in with either of them.  But there are so many credit unions out there, there MUST be one or two more that do it.   Hoping someone reads this that found an alternative to Navy or PenFed.

Since you did PenFed, why did you only do it for 7 years (84 month term), when you could have easily done it for their maximum of 142 months?  The monthly cost to service the loan after it had been paid down to $200 would be the same for 142 mo as for 84 mo.  And supposedly they only require an initial deposit of $25/mo of term, so would have only tied up approximately $3,550 for a month while it "seasoned" and then you would have gotten it all but the $200 back, just like with the 84 mo loan....the benefit of doing it for 142 months would be that it's 5 more years to put off having to do it again, and reduces the frequency of having to take the minor new account point penalty during the first year after loan issuance...  

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For 142 months, the loan amount is only $3150, not $3550, since you have to factor in the 2.05% interest.

Last year I did the max 142 month.  See details at 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Successful-PenFed-SSL-Loan/m-p/6773999

[User1492]

For anyone who sees this, and has any leads or data points, the original question still remains unanswered:

Is there any known bank or credit union, besides PenFed and Navy, that issues loans (either secured OR unsecured) without due date extension limits?