So, in my several posts about the Charge-Off issues that I am having with Merrick that I have made here (and in other posts) we often see talk about a so-called Savings Secured Loan (SSL) with NFCU (aka, Navy Federal Credit Union).
I write out the abbreviations sometimes (or define the abbreviation used) because I am still new and sometimes spend an ungodly amount of time trying to figure out what this abbreviation or that abbreviation means (so, I operate under the premise that there are likely others who struggle with the same topic...).
Anyway, pulled the trigger yesterday on the SSL with NFCU.
In April, 2021 I payed off my car loan and that was the final open "Installment Loan" that I had. My FICO scores dropped by some 30 points. Hoping that this action brings those points back to my score.
I will say this - I still have the whole Merrick Mess going on and it *should* be getting close to resolution (or maybe I just hope that it is....) so the timing of the SSL is not 100% the best (with respect to being able to 100% determine what caused what....).
If anyone has any questions to the whole SSL process please feel free to ask.
Starting Score: Exp 627
I'm sorry you're having so much trouble with Merrick. So strange, as mine was so straightforward and easy. Hope it gets cleared up soon.
As for the SSL, if you're so inclined and don't need max points right away, you could test the installment utilization thresholds on the way down. They still seem to be a bit of a mystery, and possibly differ by scorecard. If not, pay that sucker down below 9% and get your points!
The Charge Off was absolutely straight-forward and simple. I dealt with their CA (Smith and Wesson, or similar! HA! HA!) and once that was done the "process" was turned back over to Merrick. This is where the problem started - and has stayed. They are not reporting properly. In that, they are updating the account each week (or, at worst, every other week). This is, naturally, supressing the score and makes the folks out there think that this is a new situation. All I am trying to do is to get them to stop updating each week (the charge off is paid in full...). And to add the "Date Closed" data. More difficult than one would believe.
I would love - regarding the SSL - to have the points back right now *BUT* I do not *need* them back right now.
So, I could be tempted to play! LOL! What would you like to know?
$525 loan (as I needed - or so I hope to need - some 15 months). $35.87 monthly payment (IIRC). I *could* play with this for several months in the interest of Data Collection | Data Points. I have received so much help from folks in this forum that I am more than willing to give back when and where I can!
I would love - regarding the SSL - to have the points back right now *BUT* I do not *need* them back right now.
So, I could be tempted to play! LOL! What would you like to know?
$525 loan (as I needed - or so I hope to need - some 15 months). $35.87 monthly payment (IIRC). I *could* play with this for several months in the interest of Data Collection | Data Points. I have received so much help from folks in this forum that I am more than willing to give back when and where I can!
Well, we (FICO junkies) 'know' that there have been reported installment utilization thresholds for score increases at below 88%, 65%, and the biggest at under 9% of the original loan amount, and it appears there may be points for longevity of payment history too. Others have reported score changes at different thresholds in their quests as well, but have usually had their data points convoluted by another report change at the same time, and were unable to verify if crossing another threshold yielded points or if it came from another change reporting simultaneously.
Anyway, you should see your max installment utilization point gain when you pay the loan under 9% of the total. This is why the way NFCU structures their SSL is so great. You can take out the loan, satisfy credit mix for points, pay down below 9% immediately for max utilization points, and then just make micro payments for months to sustain max scores from an installment loan. Would just be interesting to see along the way down if an unexpected score change happened at another unknown threshold by someone who didn't need to max out the points and pay down to under 9% right away.
So, here are some breakdowns:
Percentages of $525 (for Utilization)
=======================================
100% = $545.00
90% = $472.50
80% = $420.00
75% = $393.75
70% = $367.50
65% = $341.25
60% = $315.00
50% = $262.50
40% = $210.00
30% = $157.50
25% = $131.25
20% = $105.00
10% = $54.50
Payment Balances
==================
Payment 1 $525.00 - $35.57 = $489.83
Payment 2 $489.83 - $35.57 = $453.86 (hits 90%)
Payment 3 $453.86 - $35.57 = $418.29 (hits 80%)
Payment 4 $418.29 - $35.57 = $382.72 (hits 75%)
Payment 5 $382.72 - $35.57 = $347.15 (hits 70%)
Payment 6 $347.15 - $35.57 = $311.58 (hits 65% and 60%)
Payment 7 $311.58 - $35.57 = $276.01
Payment 8 $276.01 - $35.57 = $240.44 (hits 50%)
Payment 9 $240.44 - $35.57 = $204.87 (hits 40%)
Payment 10 $204.87 - $35.57 = $169.30
Payment 11 $169.30 - $35.57 = $133.73 (hits 30%)
Payment 12 $133.73 - $35.57 = $98.16 (hits 25% and 20%)
Payment 13 $98.15 - $35.57 = $62.59
Payment 14 $62.59 - $35.57 = $27.02 (hits 10%)
Any particular "payment pattern" you would like to see? I am open to "playing the FICO Game" here.
@HowDoesThisAllWork wrote:
So, here are some breakdowns:
Percentages of $525 (for Utilization)
=======================================100% = $545.00
90% = $472.50
80% = $420.00
75% = $393.75
70% = $367.5065% = $341.25
60% = $315.00
50% = $262.50
40% = $210.00
30% = $157.50
25% = $131.25
20% = $105.00
10% = $54.50
Payment Balances
==================Payment 1 $525.00 - $35.57 = $489.83
Payment 2 $489.83 - $35.57 = $453.86 (hits 90%)
Payment 3 $453.86 - $35.57 = $418.29 (hits 80%)
Payment 4 $418.29 - $35.57 = $382.72 (hits 75%)
Payment 5 $382.72 - $35.57 = $347.15 (hits 70%)
Payment 6 $347.15 - $35.57 = $311.58 (hits 65% and 60%)
Payment 7 $311.58 - $35.57 = $276.01
Payment 8 $276.01 - $35.57 = $240.44 (hits 50%)
Payment 9 $240.44 - $35.57 = $204.87 (hits 40%)
Payment 10 $204.87 - $35.57 = $169.30
Payment 11 $169.30 - $35.57 = $133.73 (hits 30%)
Payment 12 $133.73 - $35.57 = $98.16 (hits 25% and 20%)
Payment 13 $98.15 - $35.57 = $62.59
Payment 14 $62.59 - $35.57 = $27.02 (hits 10%)
Any particular "payment pattern" you would like to see? I am open to "playing the FICO Game" here.
No, not particularly a pattern. Just, if you follow this payment schedule and are able to get the payments to post separate from any other change to your reports (this is the real trick sometimes), to see if you receive a score increase at any threshold other than the 'known' of 88%, 65%, and 9%. If you get a score increase from a different threshold than any of those, and there's no other possible report change that could have caused it, it would be great to know. Installment utilization is much less understood than revolving. The focus has been on revolving bc we 'know' FICO puts more stock in it. There's a hypothesis right now being tested by myself and others that a fresh installment CO's balance may not even be figured into installment utilization % which woud be insane in my opinion. It's possible the algo doesn't even care about your charged off installment loan balances. Anyway, I digress.
Obviously, you do what you need for yourself on this loan. We 'know' you'll get a bigger increase to your scores by just paying that sucker immediately down below 9%, and making micro payments until it's gone, and you'll personally pay less interest that way. However, if you're willing, just let us know as your balance lowers when you see score increases...especially if it's at thresholds other than the 'known' ones. Does that make sense?
It does indeed make sense!
I do have the thing with the Merrick Charge Off (long story....UGH!) going on right now. Dealing directly with Merrick as my initial dealings with the two CRAs (Equifax and Transunion) yeilded nothing but "time wasted". But the two letters were sent about one month ago. So hoping that Merrick replies soon. And they might have just done something as my Equifax scores dropped BIG TIME (which is what I was expecting...and experienced when I first contacted the CRAs....they went back up once this was done).
Outside of that.....and two hard pulls reaching two years soon.....there should not be any activity.
So, let's do this (as a starting point):
Payment 1 $71.14 525.00 - 71.14 = $453.86 (86.45%) ******* hits the 88% marker
Payment 2 $71.14 453.86 - 71.14 = $382.72 (72.9%)
Payment 3 $71.14 382.72 - 71.14 = $311.58 (59.35%) ******* hits the 65% marker
Payment 4 $71.14 311.58 - 71.14 = $240.44 (45.8%)
Payment 5 $71.14 240.44 - 71.14 = $169.30 (32.25%)
Payment 6 $71.14 169.30 - 71.14 = $98.16 (18.7%)
Payment 7 $71.14 98.16 - 71.14 = $27.02 (5.15%) ******** hits the 9% marker
Unless there is a need which is unknown to me at this point in time, I will gladly agree to the following payment schedule (in the pursuit of knowledge). I honestly do not care about the $8.57 in total interest were I to make the "normal" scheduled payments. Making a "double payment" gets us to the different "markers" a bit sooner. And, I think, hits enough different percentages that we should see enough to confirm what you suspect (or not!!!!).
Not having an installment loan in the my credit mix is one reason that I am doing this. Getting those 30-ish points that I lost when I closed my last installment loan in April, 2021 is another reason that I am doing this.
I am in the Garden until August/September/October 2022 so do not expect any changes (other than what I have already mentioned....will have roughly four hard pulls fall off of my credit reports in this time frame).
Totally happy to do this in the interest of pursing knowledge. Always a good thing. Will provide updates and details as things happen.
@HowDoesThisAllWork wrote:So, let's do this (as a starting point):
Payment 1 $71.14 525.00 - 71.14 = $453.86 (86.45%) ******* hits the 88% marker
Payment 2 $71.14 453.86 - 71.14 = $382.72 (72.9%)
Payment 3 $71.14 382.72 - 71.14 = $311.58 (59.35%) ******* hits the 65% marker
Payment 4 $71.14 311.58 - 71.14 = $240.44 (45.8%)
Payment 5 $71.14 240.44 - 71.14 = $169.30 (32.25%)
Payment 6 $71.14 169.30 - 71.14 = $98.16 (18.7%)
Payment 7 $71.14 98.16 - 71.14 = $27.02 (5.15%) ******** hits the 9% marker
Unless there is a need which is unknown to me at this point in time, I will gladly agree to the following payment schedule (in the pursuit of knowledge). I honestly do not care about the $8.57 in total interest were I to make the "normal" scheduled payments. Making a "double payment" gets us to the different "markers" a bit sooner. And, I think, hits enough different percentages that we should see enough to confirm what you suspect (or not!!!!).
Not having an installment loan in the my credit mix is one reason that I am doing this. Getting those 30-ish points that I lost when I closed my last installment loan in April, 2021 is another reason that I am doing this.
I am in the Garden until August/September/October 2022 so do not expect any changes (other than what I have already mentioned....will have roughly four hard pulls fall off of my credit reports in this time frame).
Totally happy to do this in the interest of pursing knowledge. Always a good thing. Will provide updates and details as things happen.
Yea, I think that's awesome. The 88% threshold is debated a bit, and may be based on scorecard. Since you're on a dirty scorecard, it'll be great to know if you see a bump oing from 100% to below 88% with that first payment. If you don't we can assume that threshold isn't valid for a dirty scorecard. Then you have 4 payments in there that cross a range of percentages where there aren't any 'known' thresholds, so it'll be interesting to see if you get points at another threshold. Thanks for going along with this. The data points help!
If you want to play the util game. Here you go:
89%, 69%, 49%, 29%, 9% are the moments. Or just go below 8.9% and grab the points now. Then pay $1 a month. Your choice.
