Opened my 30K SSL with Navy (for almost) 15 years

[CH-7-Mission-Accomplished]

I opened my "15 year" 30K SSL with Navy FCU this past Friday.   I immediately paid it down to $50.    By prepaying so much it shrunk the next due date to 11 years and 11 months -- so the next payment due is 03/2033.   The interest rate is 3.25% and they booked the original loan for 181 months.

One thing gave me near heart failure.   It took them three business days to release the $29,950 back to my account.

Just FYI, you do have to give them a reason for a SSL that is over 60 months.

We shall see if they decide to just "forgive" the $50, but knowing how most lenders will turn you over to Chex for a $5 overdraft, caused by their own monthly fee, I doubt that will happen.

This is the first new credit of any kind I've had in 2.5 years so it will be interesting to see how much it affects my scores.   I expect a drop since the age of newest account will be zero and the average age of accounts will drop a little bit.

I still have my 30K loan on the books with Alliant for my auto loan.    I got the loan in 01/2019 and have paid it down to $50.   The next payment is due 07/2024.

We shall see if I'm too clever for my own good.   

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Confessions-of-an-installment-loan-failu...

[AllZero]

Congratulations on your monster SSL approval! Thank you for sharing the data points!

[Anonymous]

Congrats and yes keep us posted. Curious as to the benefit of such a large ssl as opposed to a smaller, say $5k loan. 

[M_Smart007]

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@CH-7-Mission-Accomplished wrote:

I opened my "15 year" 30K SSL with Navy FCU this past Friday.   I immediately paid it down to $50.    By prepaying so much it shrunk the next due date to 11 years and 11 months -- so the next payment due is 03/2033.   The interest rate is 3.25% and they booked the original loan for 181 months.

One thing gave me near heart failure.   It took them three business days to release the $29,950 back to my account.

Just FYI, you do have to give them a reason for a SSL that is over 60 months.

We shall see if they decide to just "forgive" the $50, but knowing how most lenders will turn you over to Chex for a $5 overdraft, caused by their own monthly fee, I doubt that will happen.

This is the first new credit of any kind I've had in 2.5 years so it will be interesting to see how much it affects my scores.   I expect a drop since the age of newest account will be zero and the average age of accounts will drop a little bit.

I still have my 30K loan on the books with Alliant for my auto loan.    I got the loan in 01/2019 and have paid it down to $50.   The next payment is due 07/2024.

We shall see if I'm too clever for my own good.   

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@CH-7-Mission-Accomplished, Congrats!

I regained points when my only open $25 Installment loan balance on $25K .. turned one year old.

[Jnbmom]

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@Anonymous wrote:

Congrats and yes keep us posted. Curious as to the benefit of such a large ssl as opposed to a smaller, say $5k loan. 

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I agree you would get the same thing with a small SSL?

[AverageJoesCredit]

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@Anonymous wrote:

Congrats and yes keep us posted. Curious as to the benefit of such a large ssl as opposed to a smaller, say $5k loan. 

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A loan is a loan

[CH-7-Mission-Accomplished]

I just don't want to see a $500 SSL on my credit reports at this phase of my rebuild.   And I've only tied up $50 in my 30K SSL, just like those getting a $500 SSL and paying down to $50.     I had to do 30K in order to get the 15 year term.    Between this loan and my auto loan I only owe $100 on $60K of installment loans so I have lots of utilization padding and it will last for many years.

[Horseshoez]

I guess it's just me, but I still don't get the point.

One other thought, this may come back to bite you in the hind parts once FICO 10 gets released and becomes more common.  I read something, don't remember where, which said this type of loan could actually be penalized in the FICO 10 model.

[Anonymous]

Wow, 11 years till the first payment! I hope it's on autopay because I'd forget about it after the first year! lol

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@AverageJoesCredit wrote:

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@Anonymous wrote:

Congrats and yes keep us posted. Curious as to the benefit of such a large ssl as opposed to a smaller, say $5k loan. 

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A loan is a loan

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While I agree, I think the aspect of how large and how much has been paid back might be in said person's favor in terms of algorithm. Paying back $500 or $2K is one thing, paying back $20-30K is another. It could show greater ablity to other Lenders for similar "non secured" Loan amounts. While I would never go for that high of SSL, if it works for other kudos to them. My max would likely be the $5K range, maybe $10K if I could talk myself into parting with that amount for long enough to set it up and release. 

Whether or not version 10 comes along anytime soon and thows a wrench in these types of loans, we shall have to wait and see. 

[M_Smart007]

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@Anonymous wrote:

Wow, 11 years till the first payment! I hope it's on autopay because I'd forget about it after the first year! lol

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@AverageJoesCredit wrote:

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@Anonymous wrote:

Congrats and yes keep us posted. Curious as to the benefit of such a large ssl as opposed to a smaller, say $5k loan. 

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A loan is a loan

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"Paying back $500 or $2K is one thing, paying back $20-30K is another"

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This^^^^^^

is my thinking also, and why I closed my NFCU $3010 secured SSL

and went with a $25K PenFed PL paid down to $25.00.

IMHO, I believe in "Manual" review, they look at ability to repay Large amounts.

When I had gone rounds with a Wells Fargo UW at one time, I had mentioned my ability to repay a $90K car loan,

their response to that was "Ya, but that was a secured loan"   .. So this  is what changed my thinking.

I am quite sure computer algorithms do not care, but in a manual review, it could possibly make a difference.

For some reason, most of my applications go to "manual review".