The Quest for an SSL alternative to Alliant

[Anonymous]

I'm with NFCU, any advice on how to set this thing up?

I'd really appreciate it! My history is a bit thin and adding a loan would make things much better.

Thanks

[Anonymous]

Call Navy.  Tell them that you'd like to open a Share Secured Loan.  Ask them what the minimum amount is for a 60 month loan.  They will likely tell you $3000.

Assuming that is what they say, make sure you have $3050 in your savings account.  Make sure that amount has been in the account for a few days so that it is available.  Apply for the 3k 60-month loan.  When it is approved you will get 3k.  Wait for two more business days after the 3k becomes available.  Then pay the loan amount down to 8% of what it was originally.  That would be $240.

In a month or two the loan will appear on your report with most of it paid off.  You will get a big scoring boost -- assuming of course that you have no open loans already. 

Then check the loan online to confirm that the due date for the next payment has been pushed 4+ years into the future.  If an autopay was set up initially, cancel it.   You can then set up a new autopay for maybe $3 a month into the loan account -- either from your Navy checking or some external checking account.

PS.  Do not tell Navy that you plan to pay off most of the loan balance at month 1.

[SouthJamaica]

---

@Anonymous wrote:

Call Navy.  Tell them that you'd like to open a Share Secured Loan.  Ask them what the minimum amount is for a 60 month loan.  They will likely tell you $3000.

Assuming that is what they say, make sure you have $3050 in your savings account.  Make sure that amount has been in the account for a few days so that it is available.  Apply for the 3k 60-month loan.  When it is approved you will get 3k.  Wait for two more business days after the 3k becomes available.  Then pay the loan amount down to 8% of what it was originally.  That would be $240.

In a month or two the loan will appear on your report with most of it paid off.  You will get a big scoring boost -- assuming of course that you have no open loans already. 

Then check the loan online to confirm that the due date for the next payment has been pushed 4+ years into the future.  If an autopay was set up initially, cancel it.   You can then set up a new autopay for maybe $3 a month into the loan account -- either from your Navy checking or some external checking account.

PS.  Do not tell Navy that you plan to pay off most of the loan balance at month 1.

---

No they will tell you the minimum for a 60 month loan is $3001.

Unlike with Alliant, you don't need to set up autopay and cancel it; you just don't set up autopay.

Why tell them you intend to pay it off in month 1?

[Anonymous]

I am not sure why people explain in great detail to bank/CU reps how the they intend to exploit this early paydown feature, but they do, even when we' ve given them guidance on exactly what to do and warning them not to discuss it.

[Anonymous]

Is this what SSL we taking about from Navy??

Is this the SSL we talking about from NAVY. 

[Anonymous]

CreditGuyInDixie - thank you!

I'm going to fund my account and hopefully get this done in the next week or so.

I'll let you know how it goes.

[Anonymous]

---

@Anonymous wrote:

Then check the loan online to confirm that the due date for the next payment has been pushed 4+ years into the future.  If an autopay was set up initially, cancel it.   You can then set up a new autopay for maybe $3 a month into the loan account -- either from your Navy checking or some external checking account.

---

So I will pay down to $240.

Then set up auto pay for $3 a month? $3x60 months = $180.

Should I make it $4, because $4x60 = $240?

I understand that this 'trick' will give my score a boost, what happens when the 5 years is over?

I completley lose the boost I gained? Or my score just drops a little? I should set up another SSL then? (That is, if I don't have some other loan at that time)

Thank you!

[Anonymous]

Even $4 per month wouldn't pay off the loan.  Remember that you have interest on the remaining $240 accumulating.

I prefer $3 because then you don't get the balance down to some tiny amount at month 56 (say).  When you do that, lenders often forgive the remainder and close the loan.

Just watch the loan as it gets into the last 6 months.  It will tell you when to resume your original monthly payment.  The loan will end up closing at probably month 59.

If you still have no open loans, then repeat the whole process again with a new SSL.

[Anonymous]

Great thread and a big thank you to all that have contributed . I’m a Canadian customer of Alliant with 7 months of banking history and an ITIN as opposed to a SSN and a US address. I’m looking to get an installment loan on my credit file so this thread is right up my alley. Before I reach out to Alliant regarding their unsecured loan product, I was wondering if there were any data points on applying with an ITIN vs a SSN. If not, I’m happy to report back on my own experience later this week. Thanks !

[Anonymous]

I did it! NFCU.

I got the $3001 (minimum 5 year amount) SSL.

Paid it down to $240.

My next payment is due in 2023!

I set up a $3 auto payment.

But I'm a little confused.

I remember it showing 'Daily Interest Accrual Amount: $0.18'.

That's from the 2.25% interest on the $3000.

2.25% of $3000 = $67.50,  divide that by 365 and you have $0.18.

Wil that change to a lower amount when it sees I have paid it down to $240?

Or will I really pay out $328.50 in interest by the end of the this? (365*5*$0.18)

If the 2.25% will be applied to only what's remaining, then I'll only need to pay $0.01 (probably can't go less than that) a day, which is only $18.25 for the whole 5 years

And why 8%/$240?

Is the 8% because, under 9% or 10% is best for scores, and if the remaining amount is too little, the loan will be forgiven and ended prematurely?

If it was a loan of $30,000, would I still pay it down to 8%? ($2400)

Or would 1% or 2% ($300 or $600) be fine too?

(Also, what's the most a bank usually 'forgives'? I wouldn't think they would want to end a loan early and forgive more than $100...)

My questions are just to help me undestand, thank you for all the advice here.