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Credit Score just hovering!!!

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Amiashu12
Regular Contributor

Re: Credit Score just hovering!!!

I really appreciate the help here. What I would like to understand is, let's say I get an ssl through Penfed for $2500 for 60 months. Why do I pay down <9% and make monthly $25 payment VS. just pay about $70 a month for 36 months?  Thanks

Message 11 of 17
Horseshoez
Senior Contributor

Re: Credit Score just hovering!!!


@Amiashu12 wrote:

I really appreciate the help here. What I would like to understand is, let's say I get an ssl through Penfed for $2500 for 60 months. Why do I pay down <9% and make monthly $25 payment VS. just pay about $70 a month for 36 months?  Thanks


A few points:

  • The $25 minimum is the calculated payment based upon SSL amount and loan term; it does not mean you need to pay at least $25 per month.
  • If you prepay the loan down under 9%, then your next payment is pushed forward months, or even years (depending upon what you paid).  Said another way, there will be no $25 per month payment due.
  • If you pay it down to under 9% you get the maximum FICO boost in your scores.
I categorically refuse to do AZEO!
Message 12 of 17
Amiashu12
Regular Contributor

Re: Credit Score just hovering!!!

Thanks for your help again. I talked to couple of CU and they all told me that if I pay my loan down under 9% then my duration of the loan will be shorten. Would that be ok? Which questions should I be asking when I call them back? Thanks. 

Message 13 of 17
Horseshoez
Senior Contributor

Re: Credit Score just hovering!!!


@Amiashu12 wrote:

Thanks for your help again. I talked to couple of CU and they all told me that if I pay my loan down under 9% then my duration of the loan will be shorten. Would that be ok? Which questions should I be asking when I call them back? Thanks. 


PenFed doesn't work that way, the duration of the loan remains unchanged and the next payment gets pushed way out.

I categorically refuse to do AZEO!
Message 14 of 17
Amiashu12
Regular Contributor

Re: Credit Score just hovering!!!

Thanks again. Here's another question. I called my credit union and they do offer ssl. However, they only report to Equifax. Would this help at all? And, let's say if I do $1000 ssl for 2 years and make payments on time, will this boost credit score?  Thanks. 

Message 15 of 17
Horseshoez
Senior Contributor

Re: Credit Score just hovering!!!


@Amiashu12 wrote:

Thanks again. Here's another question. I called my credit union and they do offer ssl. However, they only report to Equifax. Would this help at all? And, let's say if I do $1000 ssl for 2 years and make payments on time, will this boost credit score?  Thanks. 


It will help your Equifax scores, it won't do diddly for your Experian or your TransUnion scores.

I categorically refuse to do AZEO!
Message 16 of 17
Amiashu12
Regular Contributor

Re: Credit Score just hovering!!!

Thanks. What if I go with Self Lender? Will that help? Also, Is there anyway to remove late payments prior to filing chap 7? My lawyer told me to stop making payments 1 month prior to filing and now they are the only beddies besides chap 7. Thanks

Message 17 of 17
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