To do the SSL with NFCU it will have to be over $3000 for up to 60 months. That will push out the date. Many do $3010. The other loans dont do this. You want long term and its a SP.
@Morphyyy wrote:What's the timeframe you need to have that paid down to 8.9%? And any other good places to do the technique with that are Easy pay down?
The reason for seeking a 5 year term is so that you do not have to repeat the process for 5 years incurring repeated new loan accounts which also affects your overall average age of accounts.
The benefit is an installment account for those that have no installment combined with having an active loan that is < 8.9 balance.
If you already have a relationship with NFCU then you are in the door and it is an easy process.
The minimum amount NFCU will allow for a 5 year term is $3000 which is why people choose $3010. You will need $3010 to start with but you will only actually require to tie up $270 of that (decreasing slightly each month as you pay it down further and the funds remaining against the balance is released back to you).
You need $3010 on deposit in NFCU share savings. Initiate an SSL for 5 year term with NFCU. They will lock the loan amount from your share savings account for $3010 and then turn around and deposit $3010 into the account of your choosing. Once your loan is funded, you turn right around and make an immediate payment to bring it down to < 8.9% balance, approx $2735 using the $3010 they loaned you.
This will push out your next payment date to about 4 years and 6 months from your starting loan date. The majority of the payment ($2735) will now release those funds in your share savings less a couple of dollars of interest that you may have incurred.
If the funds you deposited ($3010) you funded from somehere else, you will then have approx $2735 to push them back to where you funded them from.
From this point, your next payment is actually not due for over 4 years but make a payment periodically to get active payment history on the account.
In my circumstance, I pay $1 on the first of every month.
The only thing I would suggest is don't advertise to anyone at NFCU what you are planning to do in terms of immediately paying it down. There are very few SSL options remaining that work this way, re: you can pay it down and it pushes the due date our to near the end term of the loan rather than just shortening the loan term. I believe the consensus here (and elsewhere) is there is no need to put up any alerts that may cause NFCU to rethink how they manage the loan term with such a payback plan.
Good luck.
@Morphyyy wrote:Wow thank you that was A awesome explanation! Now I get it now lol
Not sure if I can do $3,0000 right now tho...
would $1500 for 2 years be ok?
@Morphyyy wrote:Wow thank you that was A awesome explanation! Now I get it now lol
Not sure if I can do $3,0000 right now tho...
would $1500 for 2 years be ok?
2 years is fine except it sort of defeats the purpose in that you will have to repeat the process in 2 years if you still have no other installment loan. You only need the $3000 principal amount for about 48-72 hours.
Got someone that can loan you $1500 for that length of time?
@satio wrote:
@Morphyyy wrote:What's the timeframe you need to have that paid down to 8.9%? And any other good places to do the technique with that are Easy pay down?
The reason for seeking a 5 year term is so that you do not have to repeat the process for 5 years incurring repeated new loan accounts which also affects your overall average age of accounts.
The benefit is an installment account for those that have no installment combined with having an active loan that is < 8.9 balance.
If you already have a relationship with NFCU then you are in the door and it is an easy process.
The minimum amount NFCU will allow for a 5 year term is $3000 which is why people choose $3010. You will need $3010 to start with but you will only actually require to tie up $270 of that (decreasing slightly each month as you pay it down further and the funds remaining against the balance is released back to you).
You need $3010 on deposit in NFCU share savings. Initiate an SSL for 5 year term with NFCU. They will lock the loan amount from your share savings account for $3010 and then turn around and deposit $3010 into the account of your choosing. Once your loan is funded, you turn right around and make an immediate payment to bring it down to < 8.9% balance, approx $2735 using the $3010 they loaned you.
This will push out your next payment date to about 4 years and 6 months from your starting loan date. The majority of the payment ($2735) will now release those funds in your share savings less a couple of dollars of interest that you may have incurred.
If the funds you deposited ($3010) you funded from somehere else, you will then have approx $2735 to push them back to where you funded them from.
From this point, your next payment is actually not due for over 4 years but make a payment periodically to get active payment history on the account.
In my circumstance, I pay $1 on the first of every month.
The only thing I would suggest is don't advertise to anyone at NFCU what you are planning to do in terms of immediately paying it down. There are very few SSL options remaining that work this way, re: you can pay it down and it pushes the due date our to near the end term of the loan rather than just shortening the loan term. I believe the consensus here (and elsewhere) is there is no need to put up any alerts that may cause NFCU to rethink how they manage the loan term with such a payback plan.
Good luck.
Thank you for providing this detailed process. I'm going to follow it to the letter.
@Streetervillelady wrote:
@satio wrote:
@Morphyyy wrote:What's the timeframe you need to have that paid down to 8.9%? And any other good places to do the technique with that are Easy pay down?
The reason for seeking a 5 year term is so that you do not have to repeat the process for 5 years incurring repeated new loan accounts which also affects your overall average age of accounts.
The benefit is an installment account for those that have no installment combined with having an active loan that is < 8.9 balance.
If you already have a relationship with NFCU then you are in the door and it is an easy process.
The minimum amount NFCU will allow for a 5 year term is $3000 which is why people choose $3010. You will need $3010 to start with but you will only actually require to tie up $270 of that (decreasing slightly each month as you pay it down further and the funds remaining against the balance is released back to you).
You need $3010 on deposit in NFCU share savings. Initiate an SSL for 5 year term with NFCU. They will lock the loan amount from your share savings account for $3010 and then turn around and deposit $3010 into the account of your choosing. Once your loan is funded, you turn right around and make an immediate payment to bring it down to < 8.9% balance, approx $2735 using the $3010 they loaned you.
This will push out your next payment date to about 4 years and 6 months from your starting loan date. The majority of the payment ($2735) will now release those funds in your share savings less a couple of dollars of interest that you may have incurred.
If the funds you deposited ($3010) you funded from somehere else, you will then have approx $2735 to push them back to where you funded them from.
From this point, your next payment is actually not due for over 4 years but make a payment periodically to get active payment history on the account.
In my circumstance, I pay $1 on the first of every month.
The only thing I would suggest is don't advertise to anyone at NFCU what you are planning to do in terms of immediately paying it down. There are very few SSL options remaining that work this way, re: you can pay it down and it pushes the due date our to near the end term of the loan rather than just shortening the loan term. I believe the consensus here (and elsewhere) is there is no need to put up any alerts that may cause NFCU to rethink how they manage the loan term with such a payback plan.
Good luck.
Thank you for providing this detailed process. I'm going to follow it to the letter.
Appreciate the positive feedback.
Each person's CRA profile has its own unique factors but in my situation I saw the following point lift as a result of adding this account and pay down:
EX +16
EQ +16
TU +13
Onward and upward!