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(8mo update +210pt) Building from 550 - My progress thread

HowDoesThisAllWork
Frequent Contributor

Re: Building from 532

Correct.  I just opened up an SSL with NFCU and have these data points for everyone out there....

 

1. If you get an NFCU SSL for $250 - $500, then the loan terms will be for 6 months to 11 months.  You get to pick.

 

2. If you get an NFCU SSL for $501 - $1,000, then the loan terms will be for 12 months to 17 months (again, you get to pick).

 

3. If you get an NFCU SSL for $1,001 - $3,000, then the loan terms will be for 18 months to 35 months (again, you get to pick).

 

4. If you get an NFCU SSL for $3,001 to whatever (I did not ask for details above $3,000 when I did this....)

 

Mine is for $525 and I picked 15 months.

 

Now, keep in mind that NFCU is going to tack on and report +1 for the months (loan terms).  So, to be clear, NFCU reports my SSL (which just reported to the CRAs) as a $525 Installment Loan for 16 months.

 

For those interested, here are the Transunion and Equifax screen shots...

 

NFCU SSL - Transunion.pngNFCU SSL - Equifax1.pngNFCU SSL - Equifax2.png

 

 

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 11 of 16
Horseshoez
Valued Contributor

Re: Building from 532

I have a PenFed SSL which I opened for exactly $3,000 with a repayment period of 36 months; if I recall correctly, I had the option to go as long as 60 months, even on a $3,000 SSL, however, even the three years I opted for is overkill; I should have a mortgage and/or a car payment long before then.  My way of thinking is, "why opt for a long loan, much longer than any of us can see into the future?"  Said another way, if by March of 2024 I need an SSL, I'll simply open another one and then immediatly pay it down to under 9%.  The only reason why I took five months to pay this one down to that point was to see if it impacted my scores as I dropped below various thresholds, and FWIW, the only one I noticed was when I went below 9% a few weeks ago; my Experian FICO 8 just bumped from 679 to 688.

I categorically refuse to do AZEO!

Message 12 of 16
HowDoesThisAllWork
Frequent Contributor

Re: Building from 532


@Horseshoez wrote:

I have a PenFed SSL which I opened for exactly $3,000 with a repayment period of 36 months; if I recall correctly, I had the option to go as long as 60 months, even on a $3,000 SSL, however, even the three years I opted for is overkill; I should have a mortgage and/or a car payment long before then.  My way of thinking is, "why opt for a long loan, much longer than any of us can see into the future?"  Said another way, if by March of 2024 I need an SSL, I'll simply open another one and then immediatly pay it down to under 9%.  The only reason why I took five months to pay this one down to that point was to see if it impacted my scores as I dropped below various thresholds, and FWIW, the only one I noticed was when I went below 9% a few weeks ago; my Experian FICO 8 just bumped from 679 to 688.


Agreed.  I just love love love the Navy Federal Credit Union way of giving you a choice.  I am banking (pun very much intended) on my current car, Bella, to last another year (and am hopeful for 15 - 18 months).  I am preparing for that expense now (via budgeting so that I can purchase a car like an adult....).  But, that is not the topic here.  As I have stated elsewhere, the ex-wife and I finally addressed the marital home in February.  There goes that "installment loan".  I then paid off my car (yes, the same Bella!!!  She is all mine now! LOL) and bam!  There went the last installment loan.

 

So, this SSL from NFCU really fills the void.  And doing the 15 months (which is really 16 months because of NFCU adding one extra month) fits my situation perfectly.  Well, what I *think* - right now - what "perfectly" might mean to me in the future!  Yikes!  That can be a scary sentence!

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 13 of 16
morethan20yaks
Valued Member

Re: Building from 532

Navy SSL is very well documented on this forum. O/T

 

My reasoning for scraping together the largest loan I could muster? I picture myself, speaking to underwriting in a year or two regarding a loan app I'm marginally qualified for, and they say:

 

"Yes, you have a 761 score w/ 100% history, but I'm looking here & you've only had two loans... one for $500 and one for $2000. And now you're asking for $18,000?" (I've had this conversation a decade ago and it didn't go so well). Showing responsible payment history on a 'larger' loan would have 100% helped in my negotiations. My CU still does manual underwriting in-house, and the branch manager means business when he looks you in the eye, tells you what's up, and gives you a fist bump.

 

Likewise in automated decisions, if 'the algorithm' considers large denominators, it'll help. I work in data science... I guarantee most, if not all, proprietary algorithms consider every single data point available to them, including prior loan amounts. You read all the time "most credit card SLs will be in line with your existing CLs", and this is why.

 

If you only care for the FICO score X point boost, then a $500 SSL will do the job, as far as I can tell.

Message 14 of 16
GrandBay
Frequent Contributor

Re: Building from 532

@morethan20yaks Congrats on the score growth.... 

 

Message 15 of 16
HowDoesThisAllWork
Frequent Contributor

Re: Building from 532


@morethan20yaks wrote:

Navy SSL is very well documented on this forum. O/T

 

My reasoning for scraping together the largest loan I could muster? I picture myself, speaking to underwriting in a year or two regarding a loan app I'm marginally qualified for, and they say:

 

"Yes, you have a 761 score w/ 100% history, but I'm looking here & you've only had two loans... one for $500 and one for $2000. And now you're asking for $18,000?" (I've had this conversation a decade ago and it didn't go so well). Showing responsible payment history on a 'larger' loan would have 100% helped in my negotiations. My CU still does manual underwriting in-house, and the branch manager means business when he looks you in the eye, tells you what's up, and gives you a fist bump.

 

Likewise in automated decisions, if 'the algorithm' considers large denominators, it'll help. I work in data science... I guarantee most, if not all, proprietary algorithms consider every single data point available to them, including prior loan amounts. You read all the time "most credit card SLs will be in line with your existing CLs", and this is why.

 

If you only care for the FICO score X point boost, then a $500 SSL will do the job, as far as I can tell.


@morethan20yaks 

 

Excellent journey.  And amazing results.  But, expected (that is a strong word...but let's go with it here) as well.  I figured that you worked in some sort of "engineering/science" capacity.  Your posts are extremely logical and very well laid-out.  Even this old man's brain can very nicely follow.

 

And I really like your reasoning for going for a larger sum Loan.  And the analogy that you used is dead-on perfect.  We do see that all of the time.  "Birds of a feather" and all that jazz!

 

I wonder who in this forum is the loan expert?  I can think of two or three but that is more for a different aspect.

 

Well done!  And great post with excellent (and most pertinent) detail.

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 16 of 16
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