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Share Secured Loan

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Share Secured Loan

My credit file is only three years old. And creditkarma and all bureueas estimate at 760+

Would opening a SSL benefit my profile?

 

I have CL with Discover, CapOne, Barclays, Chase (x3), Amex(x2) upwards of 70k. And a NFCU member, so recently read about the SSL for credit boost.

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31 REPLIES 31
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Super Contributor

Re: Share Secured Loan

If no open installment loan, score boost can range from 15-30 points.

 

I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant


NFCU SSL

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.

Message 2 of 32
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Super Contributor

Re: Share Secured Loan

$1 you can obtain your 3 bureau FICO 8 scores and reports at Experian or CreditCheckTotal (part of Experian). Cancel in 7 day or less to avoid the re-occurring monthly charge. Wash, Rinse, and Repeat as needed.

AnnualCreditReport. Free weekly 3 bureau online reports through April 2021.

Free credit reports (disregard the VantageScore 3.0 score) at:
Credit Karma for weekly TU and EQ reports.
WalletHub for daily TU report.

Message 3 of 32
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Mega Contributor

Re: Share Secured Loan


@AllZero wrote:

If no open installment loan, score boost can range from 15-30 points.

 

I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant


NFCU SSL

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.


I seen 30-40 points depending on which bureau .. about 35 points on Experian ..

Depending on ones overall profile ..YMMV 

 

A Penfed PL can also be used for this, as payment pushes the date way out. The life term of the loan stays at five years.

I am currently at $300 on a $25,000 loan. Will pay down to $100 after statement cuts for this month, to save a few $$$ on interest.

Message 4 of 32
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Re: Share Secured Loan


@Sherl wrote:

My credit file is only three years old. And creditkarma and all bureueas estimate at 760+

Would opening a SSL benefit my profile?

 

I have CL with Discover, CapOne, Barclays, Chase (x3), Amex(x2) upwards of 70k. And a NFCU member, so recently read about the SSL for credit boost.


@Sherl  .. If you are a NFCU member and have no installment loans reporting,??

I highly recommend going for the 5 year SSL.

Call them and find out exactly the amount for a 5 year, as it can vary.

I had done mine for $3010.00 then paid it down to 6% (you want 8.9% or a little lower)

Message 5 of 32
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Re: Share Secured Loan

Yes @M_Smart007 . The only credit products is credit card in my profile. So 5 years is the term I should look for? Not any shorter than that? Also does the size of loan helps in anyway say 3k versus 30k?

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Re: Share Secured Loan

https://ficoforums.myfico.com/t5/Personal-Finance/The-Quest-for-an-SSL-alternative-to-Alliant/m-p/55...


@spikeman768wrote:
I just spoke with a rep in the loan dept at NFCU, and I was told the following:

- Membership step:  there is a soft pull (she spent a few minutes researching this)
- Loan application step:  there is a hard pull
(from posts I've read elsewhere, experiences may vary in regards to whether or not they do them or what type and when)

Here is some SSL limit/threshold info for others so it can reduce phone calls:
$250-$500 - max 6 month term
$501-$1000 - max 12 month term
$1001-$1500 - max 18 month term
$1501-$2000 - max 24 month term
$2001-$3000 - max 36 month term
$3001+ - max 60 month term

Before I had even asked asked about the 60 month term, she told me that the 60 month term criteria can vary and final term approval will be left to the discretion of the loan officer on the consumer lending team who is approving the loan and setting the details of the loan.  She said, "For instance, if a person decides to borrow, say, $3,050, the loan officer may choose to set the loan to a 36 month term.  I have seem them do that sometimes.  It is up to their discretion."

I asked if there is a certain amount which would ensure a 60 month term, and she said that could vary and is left to the loan officer to decide.

I updated these details in the online shared spreadsheet, "Credit Union Share-Secured Loan (SSL) Info":

(the main info is in the "CU list - Good SSL Offers" tab at the bottom of the spreadsheet)
https://docs.google.com/spreadsheets/d/1C86xZUbOlPK1XBSt9cutKQ8rU8ZwRAiVbpqHWA4J-tg


-Spike
Message 7 of 32
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Mega Contributor

Re: Share Secured Loan


@Sherl wrote:

Yes @M_Smart007 . The only credit products are credit card in my profile. So 5 years is the term I should look for? Not any shorter than that? Also does the size of loan helps in anyway say 3k versus 30k?


@Sherl, I would go with 5 year over 3 year, as you get the added two years of scoring boost.

For FICO scoring purposes ( it just see's an open installment loan) ..the size of the loan does not matter, but to get 5 years,

Navy usually wants around $3010 or so.

This amount fluctuates a little so I would call and ask what it takes to get 5 years.

If you do this, pay it down immediately once approved, so it does not report at 100%.

Navy usually reports at the end of the month, so I would probably apply at the beginning of the month.

Once you have been approved after the initial deposit, and you have paid it down, they will release the funds

back into your checking or savings acct. (whichever you choose).

 

Hope all this helps? ... Anymore questions? Please feel free to askSmiley Happy

Message 8 of 32
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Re: Share Secured Loan

@M_Smart007  Does it imapcts my profile in a negative way if I plan to buy a home/car loan in next two years and if this loan is open?

 

 

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Re: Share Secured Loan

@AllZero I have NFCU and Alliant (3 yrs old+) account but I think NFCU is the best in this dept. Correct me if I am wrong.

 

Plus I am based on TX. So SSFCU is something I can do as well.

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