Paying off NFCU SSL after 4 months? Can this hurt me?

[tussking]

So a few months back I took out an NFCU SSL = Share Secured Loan and used the $30k. I guess it was a mistake as I really didn't need the SSL.

Live and learn I guess. Now it just bothers me to see the 29k debt on my CR and watch it affect my UTIL.

I'm planning on getting a car for my kid in the next three months and I don't feel like explaining why I have one lease and one loan while looking for the car. Sorry for the rant...

Can it hurt me in any way to pay it off after only 4 months? 

As usual, thank you to everyone who provides assistance.

[Gollum]

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@tussking wrote:

So a few months back I took out an NFCU SSL and used the $30k. I guess it was a mistake as I really didn't need the SSL.

Live and learn I guess. Now it just bothers me to see the 29k debt on my CR and watch it affect my UTIL.

I'm planning on getting a car for my kid in the next three months and I don't feel like explaining why I have one lease and one loan while looking for the car. Sorry for the rant...

Can it hurt me in any way to pay it off after only 4 months? 

As usual, thank you to everyone who provides assistance.

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TL;DR: Apparently an SSL (Share Secured Loan) is a loan against assets in a credit union share account (a credit union share account is the equivalent of a savings account at a bank).

I didn't know what an SSL is in the context of this WWW forum, so I checked for the abbreviation at https://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458 and I found out that

SSL = Share Secured Loan

If that also seems mysterious, I suggest that the gentle reader do an Internet search for

Share Secured Loan

and I found the explanation at this URL helpful:

https://www.bankrate.com/loans/personal-loans/what-is-a-shared-secured-loan/

[Anonymous]

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@tussking wrote:

So a few months back I took out an NFCU SSL = Share Secured Loan and used the $30k. I guess it was a mistake as I really didn't need the SSL.

Live and learn I guess. Now it just bothers me to see the 29k debt on my CR and watch it affect my UTIL.

I'm planning on getting a car for my kid in the next three months and I don't feel like explaining why I have one lease and one loan while looking for the car. Sorry for the rant...

Can it hurt me in any way to pay it off after only 4 months? 

As usual, thank you to everyone who provides assistance.

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The benefit of an SSL occurs when you pay it down to 8.9% or less of the outstanding balance and the usual recommendation is to pay it down immediately.  From what you've said it does not appear that you paid down the loan so you're experiencing the opposite and are being penalized for having a loan where not much of the principal has been repaid.  Typically when you pay down the loan to below 8.9% you will get an increase in FICO scores of between 25-50 points if you have no other open loans on your credit report.

It will not hurt you in any way if you paid off the SSL after only 4 months.  Considering you already had a lease on your credit reports an SSL would not have given a scoring boost.

[AllZero]

As mentioned up thread, if you currently have an installment loan, the SSL is redundant. Paying it off and closing it will not hurt you unless you have no other open installment loan.

How long is the SSL?

How long is the lease?

What is your expected new loan term length?