Successful PenFed SSL Loan

[Patient957]

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@Snook_on_the_Line wrote:

Is it possible to set up an automatic payment for just the intrest.   

in your case, $.32 per month 

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Yes.

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@Snook_on_the_Line wrote: 

also can you schedule payments to resume at $25/ month on schedule 

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No.  Right now, it will only let me schedule a payment out to 2025, not later.

[masscredit]

Something I don't remember... We want to pay the loan down to <9%.  If paying it to 8% then not making a payment for awhile, does 8.1%-8.9% round it to 9% for scoring? 

[FicoMike0]

@masscredit 

Interesting question. 

By my rough calculations it would take more than four years to get from 8% to 9%.

I believe the goal is to have a balance that rounds to nine or less. That would mean the real upper limit is 9.4%.

[nycnite]

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@Patient957 wrote:

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@DoppelgangerD wrote:

Can you list some of the process you had to do to get started with the SSL?

Did you call them, or go into a b&m branch?

Were you able to do online document signing, etc.., or did you have to receive paper docs, sign them and send them back?

Stuff like that, if you don't mind, please and thank you.

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I deposited $4000 in my share account.  After 30 days, I called and asked about a secured share loan.  I asked what the longest term was and the rep said 142 months.  She did a calculation and determined that $3150 was the loan amount I would need to meet the minimum $25 payment.  So I said I'll take it, and she set it up immediately.

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Thanks for sharing the processs and your experience.

Was there a requirement to wait 30 days or were you just being cautious?

[Patient957]

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@nycnite wrote:

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@Patient957 wrote:

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@DoppelgangerD wrote:

Can you list some of the process you had to do to get started with the SSL?

Did you call them, or go into a b&m branch?

Were you able to do online document signing, etc.., or did you have to receive paper docs, sign them and send them back?

Stuff like that, if you don't mind, please and thank you.

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I deposited $4000 in my share account.  After 30 days, I called and asked about a secured share loan.  I asked what the longest term was and the rep said 142 months.  She did a calculation and determined that $3150 was the loan amount I would need to meet the minimum $25 payment.  So I said I'll take it, and she set it up immediately.

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Thanks for sharing the processs and your experience.

Was there a requirement to wait 30 days or were you just being cautious?

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It's required.  The money must be in your share account for 30 days before you can use it to set up an SSL.

[FicoMike0]

The 30 days is a penfed requirement. So is the $25 min payment, which determines the loan amount, $25 X loan term in months.

Another tricky point is prepaying the loan. In the app, it offers a phone number to call if you want to make a principle only payment. Don't do that, just make the payment as if it were a monthly payment. Otherwise, it advances the term.

With each payment made, an additional amount becomes available for withdrawal from the regular savings account. I opened a premium online savings, which pays 3%, where I deposited the loan proceeds. Then, I prepayed 91% of the loan from that account, leaving 9% (the New loan balance) earning 3%. I use this account strictly for paying the ssl. Since 3% is greater than 2.05%, this account will always exceed the loan balance.

[Varsity_Lu]

@FicoMike0

@Patient957 

Been reading through this thread and have a few questions: Does PenFed do a hard pull to join? Does opening a HYSA premium online savings account for 30 days qualify you for an SSL? Other than dropping $4k (or however much you want) into that account and waiting 30 days, is there anything else a person needs to do to get an SSL?

[Creditwiser]

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@Varsity_Lu wrote:

@FicoMike0

@Patient957 

Been reading through this thread and have a few questions: Does PenFed do a hard pull to join? Does opening a HYSA premium online savings account for 30 days qualify you for an SSL? Other than dropping $4k (or however much you want) into that account and waiting 30 days, is there anything else a person needs to do to get an SSL?

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The PenFed HYSA is not eligble for the SSL loan.  Funds must be available and have been in a regular Savings account for 30 days.

[Varsity_Lu]

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@Creditwiser wrote:

The PenFed HYSA is not eligble for the SSL loan.  Funds must be available and have been in a regular Savings account for 30 days.

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Got it. So Mike probably set that up separate toale payments on the loan? The regular savings account has to have whatever amount is left on the loan as security I assume?

[Patient957]

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@Varsity_Lu wrote:

@FicoMike0

@Patient957 

Been reading through this thread and have a few questions: Does PenFed do a hard pull to join? Does opening a HYSA premium online savings account for 30 days qualify you for an SSL? Other than dropping $4k (or however much you want) into that account and waiting 30 days, is there anything else a person needs to do to get an SSL?

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Equifax soft pull to join.  No hard pull to join or for SSL.

Money must be in the regular savings account for 30 days before opening the SSL.  Note that SSL is not available online.  You must call to set it up.  For me it was a fast and easy call. 

Joining was kind of a hassle for me, because I didn't have a federally compliant ID or an actual social security card.  They required both, so I had to get them and re-apply.