The Quest for an SSL alternative to Alliant

[Anonymous]

My comments below in blue.

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@Anonymous wrote:

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.

Good for you.

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

The daily interest should drop to a penny daily.

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?

Needs to be under 8.99% for optimal scoring. 

And if you paid it down to a tiny amount, the lender would be at risk of closing the loan 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 advice is to pay the loan down to 8% for sure.  Then make sure that whatever extra payments you make keep the loan balance:

(a) Above $20

(b) Above the original monthly payment

Lenders differ on when they might close a loan due to an ultrasmall balance.  It's internal policy.  I suggest you do not ask them.

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

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[Anonymous]

Has anyone tried, or have any information, on First Credit Union?

FirstCU Share Secured Loan (SSL)

• $500 minimum
• No credit check
• Up to 60 months

[Anonymous]

I have researched the following 21 Credit Unions.

I cannot find a single one who will extend payments out more than 3-6 months.

Some do credit checks, some do not, however it doesn't matter as not a single one will allow us to take advantage of the SSL Technique aside from Andrews Federal Credit Union.

I encourage anyone researching a CU to reach out to them via some form of social media messaging as they are always extremely kind, helpful, and will directly contact a Loan-Specialist/CSR to verify your questions or concerns.

"Hello and thank you very much for your time. I have a couple questions about your Share Secured Loans. Are there any credit checks? What is the minimum and maximum loan size along with repayment term lengths I can expect? Finally, If at any point I am able to make a large lump sum payment towards my loan is my due date extended and with no limit as to how long my due date can be advanced?
Thank you very much for your time and have a wonderful day!"

Andrews - Credit Check: No - Advance Payments: Yes (Seems to advance payments indefinitely)

Achieve - Credit Check: No - Advance Payments: Yes (Someone needs to personally call to find out the extent of this)

Advance Financial - Credit Check: No - Advance Payments: Yes (Unable to clarify just how far you can advance payments)

Pioneer - Credit Check: No - Advance Payments: 6 Months

State Department - Credit Check: Yes - Advance Payments: 4 Months

America First - Credit Check: Yes - Advance Payments: 3 Months

Advantage West - Credit Check: Yes - Advance Payments: 3 Months

JSC - Credit Check: Yes - Advance Payments: 3 Months

Energy Capital - Credit Check: Yes - Advance Payments: 3 Months

USC - Credit Check: No - Advance payments only via IN PERSON REQUESTS

Eagle: Must call for inquiries

First Tech - Credit Check: Soft - Fixed Payments

Arizona - Credit Check: Yes - Fixed Payments

Prime Source - Credit Check: Yes - Fixed Payments

HFS - Credit Check: Yes - Fixed Payments

First - Credit Check: N/A - Fixed Payments

Meridia Community - Must be in service area to do business

Inspire - Must be in service area to do business

Sound - Must be in service area to do business

Cy-Fair - Must be in service area to do business

Ideal - Doesn't work anymore due to too many community member inquiries..

I currently have inquiries into Andrews Federal Credit Union, Achieve Federal Credit Union, and Advance Financial Credit Union via their website contact page for clarification on the length of payment advancement and I will post here after all three have replied.

A note to any Credit Unions who may be discovering this forum thread for the first time or keeping tabs on it:

New customers seeking you out for the purpose outlined here should not be considered a bad thing, these are responsible individuals seeking to improve their situation not worsen it and as such will establish a long lasting relationship with you and most likely consider using some of the other services you provide at some point in the future.

[wdkwang]

@KKlouzal thanks for the extensive research done so far. have you heard back from Andrews Federal Credit Union, Achieve Federal Credit Union, and Advance Financial Credit Union? 

[Anonymous]

Just got off the phone with Navy Fed and they indicated that their "Pledge Loan" is the same as their "Share Secured Loan" and that the minimum loan amount is $250. I was expecting a $3000 minimum and am wondering if the CSR was confused? 

[Anonymous]

Will this work? If note feel free to delete.

Savings-Secured Loan: Borrow against yourself via the money in your Andigo savings account, without closing that account, for up to 60 months. As your loan balance is reduced, you may withdraw the amount repaid.

Certificate-Secured Loan: Borrow up to 90% of the face value of any Andigo certificate. Repay the loan before or immediately upon the maturity of the certificate.

Andigo Credit Union 

Andigo dot Org

https://www.andigo.org/Borrow/goLoan

[Anonymous]

So as of now only NFCU is working ?

[Anonymous]

Wow, so it's been a few weeks since I did the NFCU SSL.

Today I saw how my scores changed. My credit score is fine (short, but no 'problems'), I just want to build more history and get it higher.

Credit Karma says I have dropped 14 points in TU, and 9 in EQ.

We all know CK is junk, so I ignored that

NFCU's FICO report (EQ) says I went up 5 points - great.

Discover's (TU) says I went up 25 points - amazing!

Thanks everyone

[Anonymous]

I couldn't get an answer out of Achieve and Advance but Andrews is the real deal. Confirmed from multiple reps at different sources that you can indeed prepay the loan and have it extend out as many months as your lump sump payment will cover the minimum amount due.

No credit check to signup, no credit check for the secured loan. 1000 minimum.

I've switched over to doing all my banking at Andrews now, mainly because my direct deposit hits almost 24 hours sooner than my old bank.

[Anonymous]

If a person gets a $1000 loan with Andrews, what is the longest term available?

You may find out that the term is smaller if you elect a smaller amount.  At Navy Fed the minimum size for the 60 month is $3000.

Will you implementing the SSL Technique at Andrews?  When do you think you will apply?