Self lender or SSL through CU?

[Anonymous]

I am considering getting a small installment loan to thicken my file. My options are Slef lender or a SSL through a local credit union.

With Self lender there is no hard pull but with the SSL there is. Futhermore the SSL does not allow you to pay most of the loan off all at once. If you do, you will shorten the length of the loan just like with self lender. Ergo the "SSL technique" will not work.

Also, if I am planning on financing a car in the near future would getting an installment loan even be necessary? Do I really need to have installment loan history or would my 2 revolvers suffice?

I ask because I have read on this forum that lenders like to see installment loan history especially on young files. Not to mention the "auto navigator" denial letter I recieved from Capital One specifically stated one of the reasons for denial was lack of installment loan history.

With that said, how should I proceed?

Thanks in advance.

[AllZero]

Proceed with the auto loan. Check with your local credit union or online, e.g. DCU.

No need for a Self Lender or a SSL if you are trying to obtain a auto loan. It would be redundant and you may be penalized for new account and inquiry.

[Anonymous]

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@AllZero wrote:
Proceed with the auto loan. Check with your local credit union or online, e.g. DCU.

No need for a Self Lender or a SSL if you are trying to obtain a auto loan. It would be redundant and you may be penalized for new account and inquiry.

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 Unfortunately my local CU said my credit history was to short for an auto loan. My AAoA is only 6 months. Right now I'm trying my absolute best to avoid unnecessary hard pulls. I already made that mistake once.

Does DCU cover the whole loan? I've read that they only cover 80%.

[AllZero]

I don't know of all the particulars. Best if you check with DCU directly. https://www.dcu.org

[Gmood1]

Do you have anyway to join Navy Federal? That would help a lot!

Doesn't hurt to have more than one installment loan. Down the road it will actually thicken your file.

If you have a family member that can add you to a CC with good ,long history. That would make a tremendous difference!
Say, one CC atleast 10 years old.

Did this for my nephew last year. He had absolutely no credit in December 2018. In January his credit reports were generated for the first time.
By November of 2019 he bought his first house, followed by his first car.
He's only 19 yrs old.

Being an AU on a old, perfect payment history CC that reports AUs and backdates works!

[M_Smart007]

+1 on The NFCU SSL if possible?

[Anonymous]

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@Gmood1 wrote:
Do you have anyway to join Navy Federal? That would help a lot!

Doesn't hurt to have more than one installment loan. Down the road it will actually thicken your file.

If you have a family member that can add you to a CC with good ,long history. That would make a tremendous difference!
Say, one CC atleast 10 years old.

Did this for my nephew last year. He had absolutely no credit in December 2018. In January his credit reports were generated for the first time.
By November of 2019 he bought his first house, followed by his first car.
He's only 19 yrs old.

Being an AU on a old, perfect payment history CC that reports AUs and backdates works!

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Sadly no, I do not have a way to join NFCU. Nor do I have the privilege of being added as an AU. Although, even if I did I still wouldn't be comfortable with the idea of "piggy backing" on someone else's success... Family or not. 

Anyway thanks for the help.

[Gmood1]

Piggy backing on someone's success?
IMHO, it's about helping family. Giving my kids a headstart. So they don't have to go through what I did, to build credit.
They don't have to go to a buy here pay here rip off car lot, just to buy a vehicle. Only to have it break down weeks after the purchase.
Now you have a auto payment on a vehicle that doesn't even run. I know first-hand how that feels.

No one in this world has ever become successful without the help of others.