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Self Lender Loan Ending

CivalV
Established Contributor

Self Lender Loan Ending

Hello everyone.

So June 20th my 12 month Self Lender account matures. This is the only open installment loan I have and I am worried I will take a big hit when it closes.

What do I do now? Do I open a new installment loan now to overlap and hopefully not take a huge hit when my Self Lender closes? Im not sure what to do! 😩


I considered opening a CD account with a bank or credit union but I am still doing research on this.
Sept 18: EQ: 578 TU: 583 EX: 576
Sept 19: EQ8: 640 TU8: 645 EX8:640 April 20': EQ8: ??? TU8: 680 EX8: 673
Goal by June 2022: First Time Home Buyer
AA:


Goal Completed: Auto Lease 2020 Mazda CX-5 No Income Verification


The Line Up
Marriott Bonvoy: $5000
Amazon Prime Now Sig: $2800
CITI Costco: $5500
CITI Double Cash: $6100
Navy Rewards: $2000
Amex Delta Plat: $1700
Amex Hilton Honors: $1000
Target Red Card: $2000
Victoria Secret Gold: $1200
HSN: $2500
Overstock: $2750
Kohls: $900
Capital One: $2750
Capital One #2: $500

Penfed Personal Loan: $20K
NFCU Secured Loan: $285


Total CL:$36,700
Total UTL: 25%
Current Scores: EQ: 698 TU: 706 EX: 696
Message 1 of 11
10 REPLIES 10
Overmedicated
Community Leader
Valued Contributor

Re: Self Lender Loan Ending

I see in your signature that one day, you want some of NFCU's cards.  If you have a way in, I would suggest doing their SSL.  

FICO 8
Message 2 of 11
Kforce
Valued Contributor

Re: Self Lender Loan Ending

Wait and see how it affects your score.

I only lost 15 points.

Now a year later because of accounts aging, only down 5.

For me not worth going the  SSL route.

If your loss is enough, you know how to fix it, but it might not be as bad as you are thinking.

FNBO Cashback Visa (20k) / Bank-West Cashback MC (20k) / USAlliance 3% Visa (20k)
Two Old CU cards (20k each) -- (Sock Drawer) / Secret 3% MC (20k)
Ficos : 830 / AAoA : 9 yrs / AoOA : 24 Yrs / AoYA : 0
Message 3 of 11
CivalV
Established Contributor

Re: Self Lender Loan Ending

Im more nervous because my scores are mid 600s. Any points lost will suck 😩

I will try the wait and see. Hopefully it’s not a massive hit
Sept 18: EQ: 578 TU: 583 EX: 576
Sept 19: EQ8: 640 TU8: 645 EX8:640 April 20': EQ8: ??? TU8: 680 EX8: 673
Goal by June 2022: First Time Home Buyer
AA:


Goal Completed: Auto Lease 2020 Mazda CX-5 No Income Verification


The Line Up
Marriott Bonvoy: $5000
Amazon Prime Now Sig: $2800
CITI Costco: $5500
CITI Double Cash: $6100
Navy Rewards: $2000
Amex Delta Plat: $1700
Amex Hilton Honors: $1000
Target Red Card: $2000
Victoria Secret Gold: $1200
HSN: $2500
Overstock: $2750
Kohls: $900
Capital One: $2750
Capital One #2: $500

Penfed Personal Loan: $20K
NFCU Secured Loan: $285


Total CL:$36,700
Total UTL: 25%
Current Scores: EQ: 698 TU: 706 EX: 696
Message 4 of 11
pinkandgrey
Community Leader
Senior Contributor

Re: Self Lender Loan Ending

I wouldn’t worry. Back when my only installment loan was my car, I didn’t take a big hit when it closed. And the points bounced back rapidly. Plus, I wouldn’t even consider opening a loan you don’t need just to boost your score. Good luck! 

Discover It: 19.7k
Amex ED: 18k
Citi DC: 7.7k
Fidelity Visa: 2k
Apple Card: 1.5k
Message 5 of 11
CreditGuyInDixie
Super Contributor

Re: Self Lender Loan Ending


@Overmedicated wrote:

I see in your signature that one day, you want some of NFCU's cards.  If you have a way in, I would suggest doing their SSL.  


Hello OP.  Is there any reason you don't want to take Overmed's advice?

 

Message 6 of 11
Revelate
Moderator Emeritus

Re: Self Lender Loan Ending


@pinkandgrey wrote:

I wouldn’t worry. Back when my only installment loan was my car, I didn’t take a big hit when it closed. And the points bounced back rapidly. Plus, I wouldn’t even consider opening a loan you don’t need just to boost your score. Good luck! 


All the time people put into this forum is far more expensive than what Overmediciated and CGID are suggesting.

 

It may be manipulation but 20-30 points on FICO 8 is hard to turn down, and the SSL trick with NFCU at least is alive and well, pay it down to $5 or whatever and you're paying like 10 *cents* in interest annually.

 

That's seriously picking up loose change on the sidewalk cheap.

 

Also as far as a score recovery goes, it wasn't tied to the installment loan at all... some other change, so really it's just lost points.  If you're gold plated like Kforce that's one thing, but for the vast majority who are not this should really be considered especially with the recent data coming out that suggests installment loans don't reset AOYA for FICO 8 classic: other than AAOA ding there may be no penalty in doing this.




        
Message 7 of 11
UncleB
Moderator

Re: Self Lender Loan Ending

As others have already mentioned all profiles are different, but when I paid off my Amex installment loan last year (my only installment loan) my EX dropped a full 40 points, from 823 to 783.  My EQ and TU dropped similarly (30-some odd points IIRC).  Next month will be a year, and I never got the points back. To be fair I did add a card back in February, but that didn't make a difference in either direction.

 

My scores aren't bad (770s - 780s) but I haven't been in the 800s since the loan was paid off.   On a positive note I seem to have found my 'floor' since even with the new addition in February my scores barely flinched, and balances reporting now don't seem to make an impact.  My normal fluctuation is +/- 5 points.

 

TL;DR... sometimes there's a significant drop when one's only installment loan is PIF, and those points might be difficult to regain until/unless another installment loan is added (and paid down).  Luckily there are easy (and cheap) options for that.

Message 8 of 11
CivalV
Established Contributor

Re: Self Lender Loan Ending

I don’t get updates when people comment but I wish I qualified for NFCU.
Sept 18: EQ: 578 TU: 583 EX: 576
Sept 19: EQ8: 640 TU8: 645 EX8:640 April 20': EQ8: ??? TU8: 680 EX8: 673
Goal by June 2022: First Time Home Buyer
AA:


Goal Completed: Auto Lease 2020 Mazda CX-5 No Income Verification


The Line Up
Marriott Bonvoy: $5000
Amazon Prime Now Sig: $2800
CITI Costco: $5500
CITI Double Cash: $6100
Navy Rewards: $2000
Amex Delta Plat: $1700
Amex Hilton Honors: $1000
Target Red Card: $2000
Victoria Secret Gold: $1200
HSN: $2500
Overstock: $2750
Kohls: $900
Capital One: $2750
Capital One #2: $500

Penfed Personal Loan: $20K
NFCU Secured Loan: $285


Total CL:$36,700
Total UTL: 25%
Current Scores: EQ: 698 TU: 706 EX: 696
Message 9 of 11
CivalV
Established Contributor

Re: Self Lender Loan Ending

30-40 points would land me back at low 600 scores or even high 500s. That would be terrible and I am sure AA would happen at that point
Sept 18: EQ: 578 TU: 583 EX: 576
Sept 19: EQ8: 640 TU8: 645 EX8:640 April 20': EQ8: ??? TU8: 680 EX8: 673
Goal by June 2022: First Time Home Buyer
AA:


Goal Completed: Auto Lease 2020 Mazda CX-5 No Income Verification


The Line Up
Marriott Bonvoy: $5000
Amazon Prime Now Sig: $2800
CITI Costco: $5500
CITI Double Cash: $6100
Navy Rewards: $2000
Amex Delta Plat: $1700
Amex Hilton Honors: $1000
Target Red Card: $2000
Victoria Secret Gold: $1200
HSN: $2500
Overstock: $2750
Kohls: $900
Capital One: $2750
Capital One #2: $500

Penfed Personal Loan: $20K
NFCU Secured Loan: $285


Total CL:$36,700
Total UTL: 25%
Current Scores: EQ: 698 TU: 706 EX: 696
Message 10 of 11
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