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What to do next?

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What to do next?

Happy new year to you all,

 

First, I have one installment loan which is a student loan and the amount owed is $4500. I'm currently still a student and due to graduate in June 2020 timeframe. It's a subsidized loan, I paid off the unsubsized one already because it was accuring interest while still enrolled. I know I won't have to start making payments until around this time next year but I want to pay it off.

 

My car is paid off and I don't forsee myself trying to get an auto loan for at least 2-3 years. I was thinking about doing an SSL, my questions are should I start the SSL now just to get that payment history going as well and use the method of paying it down or should I wait? Also when should I paid off this student loan, is it that much of a factor right now?

12/18/19






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Message 1 of 11
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Re: What to do next?


@ClassicMan wrote:

Happy new year to you all,

 

First, I have one installment loan which is a student loan and the amount owed is $4500. I'm currently still a student and due to graduate in June 2020 timeframe. It's a subsidized loan, I paid off the unsubsized one already because it was accuring interest while still enrolled. I know I won't have to start making payments until around this time next year but I want to pay it off.

 

My car is paid off and I don't forsee myself trying to get an auto loan for at least 2-3 years. I was thinking about doing an SSL, my questions are should I start the SSL now just to get that payment history going as well and use the method of paying it down or should I wait? Also when should I paid off this student loan, is it that much of a factor right now?


You currently have a open student loan. It would be premature and redundant to open a SSL at this time.

 

If you have a very low interest rate, I would imagine you'll benefit paying it down to 8.9% utilization for optimized score boost but see if you can extend the term for as long as possible.

 

When that student loan is nearing an end, you can always open up the Navy SSL. I would recommend doing the 5 year term.

Message 2 of 11
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Re: What to do next?


@AllZero wrote:

@ClassicMan wrote:

Happy new year to you all,

 

First, I have one installment loan which is a student loan and the amount owed is $4500. I'm currently still a student and due to graduate in June 2020 timeframe. It's a subsidized loan, I paid off the unsubsized one already because it was accuring interest while still enrolled. I know I won't have to start making payments until around this time next year but I want to pay it off.

 

My car is paid off and I don't forsee myself trying to get an auto loan for at least 2-3 years. I was thinking about doing an SSL, my questions are should I start the SSL now just to get that payment history going as well and use the method of paying it down or should I wait? Also when should I paid off this student loan, is it that much of a factor right now?


You currently have a open student loan. It would be premature and redundant to open a SSL at this time.

 

If you have a very low interest rate, I would imagine you'll benefit paying it down to 8.9% utilization for optimized score boost but see if you can extend the term for as long as possible.

 

When that student loan is nearing an end, you can always open up the Navy SSL. I would recommend doing the 5 year term.


This. Also may want to check if you are pre-qualified for any student cards from the majors.




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Message 3 of 11
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Re: What to do next?


@AllZero wrote:

@ClassicMan wrote:

Happy new year to you all,

 

First, I have one installment loan which is a student loan and the amount owed is $4500. I'm currently still a student and due to graduate in June 2020 timeframe. It's a subsidized loan, I paid off the unsubsized one already because it was accuring interest while still enrolled. I know I won't have to start making payments until around this time next year but I want to pay it off.

 

My car is paid off and I don't forsee myself trying to get an auto loan for at least 2-3 years. I was thinking about doing an SSL, my questions are should I start the SSL now just to get that payment history going as well and use the method of paying it down or should I wait? Also when should I paid off this student loan, is it that much of a factor right now?


You currently have a open student loan. It would be premature and redundant to open a SSL at this time.

 

If you have a very low interest rate, I would imagine you'll benefit paying it down to 8.9% utilization for optimized score boost but see if you can extend the term for as long as possible.

 

When that student loan is nearing an end, you can always open up the Navy SSL. I would recommend doing the 5 year term.


The main reason I was considering to just doing the SSL now is to build my internal score some more with NFCU, so when I app for a CLI and 2nd card in the next 3-6 months I'll have a greater chance. But the interest rate for my loan is 5.05% so I candefinitley just knock it out.

12/18/19






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Message 4 of 11
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Re: What to do next?


@mikesonthemend wrote:

@AllZero wrote:

@ClassicMan wrote:

Happy new year to you all,

 

First, I have one installment loan which is a student loan and the amount owed is $4500. I'm currently still a student and due to graduate in June 2020 timeframe. It's a subsidized loan, I paid off the unsubsized one already because it was accuring interest while still enrolled. I know I won't have to start making payments until around this time next year but I want to pay it off.

 

My car is paid off and I don't forsee myself trying to get an auto loan for at least 2-3 years. I was thinking about doing an SSL, my questions are should I start the SSL now just to get that payment history going as well and use the method of paying it down or should I wait? Also when should I paid off this student loan, is it that much of a factor right now?


You currently have a open student loan. It would be premature and redundant to open a SSL at this time.

 

If you have a very low interest rate, I would imagine you'll benefit paying it down to 8.9% utilization for optimized score boost but see if you can extend the term for as long as possible.

 

When that student loan is nearing an end, you can always open up the Navy SSL. I would recommend doing the 5 year term.


This. Also may want to check if you are pre-qualified for any student cards from the majors.


Capital one offerered me one but I'l just stay away from those at the moment.

12/18/19






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Message 5 of 11
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Re: What to do next?

Depending on the structure of the loan, you might be able to pay it way down and then just let it sit there.

 

I have a low balance student loan as my only installment. When I pay ahead, the loan stays open but I simply don't have a payment due the next month. Haven't made a payment on it in over a year, but it keeps reporting monthly.

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Message 6 of 11
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Re: What to do next?


@SteelerNYC wrote:

Depending on the structure of the loan, you might be able to pay it way down and then just let it sit there.

 

I have a low balance student loan as my only installment. When I pay ahead, the loan stays open but I simply don't have a payment due the next month. Haven't made a payment on it in over a year, but it keeps reporting monthly.


I'm going to contact my loan service provider and make sure that the loan will spread out over that time.

12/18/19






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Re: What to do next?

Don’t contact them, just make a lump sum and leave it.

Federal student loans when I looked into it a few years back were totally up for playing reindeer games. With the term on most of them they totally smash any SSL available on the market.

Let it ride for now then once interest starts accruing just pay it aggressively and see what it does... if it doesn’t work you can pay it off and then go pull the SSL trick.

I would have loved to have a Fed SL on my report to do this with but wasn’t in the cards and I have a mortgage. Then again if I need the financial hedge that is having a paid off mortgage, totally going to see if I can do it and if so just leave $20 on it for as long as possible.



        
Message 8 of 11
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Re: What to do next?


@ClassicMan wrote:

The main reason I was considering to just doing the SSL now is to build my internal score some more with NFCU, so when I app for a CLI and 2nd card in the next 3-6 months I'll have a greater chance. But the interest rate for my loan is 5.05% so I candefinitley just knock it out.


I think using their products is a wise move to hopefully increase your internal score. Have you looked into their other products such as certificates, IRAs, etc?

 

Their SSL is 2.25% APR for the 5 year term.

 

Based on your signature, I think your 2nd card should yield another 5 digit starting limit.

Message 9 of 11
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Re: What to do next?


@AllZero wrote:

@ClassicMan wrote:

The main reason I was considering to just doing the SSL now is to build my internal score some more with NFCU, so when I app for a CLI and 2nd card in the next 3-6 months I'll have a greater chance. But the interest rate for my loan is 5.05% so I candefinitley just knock it out.


I think using their products is a wise move to hopefully increase your internal score. Have you looked into their other products such as certificates, IRAs, etc?

 

Their SSL is 2.25% APR for the 5 year term.

 

Based on your signature, I think your 2nd card should yield another 5 digit starting limit.


I signed up for a certificate, I'm going to throw about atleast $500-750 in it a month for about 6 months. But my paperwork finally came and it said my internal score is a 314. 

12/18/19






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