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Should I get Navy SSL with closed delinquent student loans on file?

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Super Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?

All installment loans no matter what they are for the util is factored into the score. One mortgage by itself, or 1 auto by itself, or even 1 personal/secured by itself loan means the same. Add them all up and there's your util %. If you have a mortgage. Getting a SSL wont do much for you.

The credit utilization category has six subcomponents:

  1. The amount of debt still owed to lenders.
  2. The number of accounts with debt outstanding.
  3. The amount of debt owed on individual accounts.
  4. The lack of a certain type of loan, in some cases.
  5. The percentage of credit lines in use on revolving accounts, like credit cards.
  6. The percentage of debt still owed on installment loans, like mortgages.

https://www.myfico.com/credit-education/credit-scores/amount-of-debt 





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 11 of 19
Established Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?


@850Dreamer wrote:

My credit profile is thin. I have 1 open credit card and just opened Discover and NFCU accounts this month to up my total credit cards to three. These are my only open accounts. I've read a bunch of information regarding share secured loans and realize this is for people who do not show installment loans on their profile. I currently have closed delinquent student loan installment accounts on my report. These loans are updated monthly by US Department of Education but show as closed on my official credit reports. I will bring these loans out of default in 2020.

I primarily want a SSL for two reasons:

 

1) To beef up profile with an active installment account that will be in good standing for years to come. This would bring me to 3 active revolving accounts and one active installment

2) To help me build a great relationship with Navy so I can apply for a serious $10k-$15k limit card in next 6ish months after I do some other work with derogs. 

 

I plan to pay down the SSL 92% immediately after it is active. My average age of accounts is actually quite high around 9 years, they are just all closed lol. What do you think?


Do it today!  If you have this ability being a member is is really a no brainer.  Doesn't even cost a hard pull.  Both DW and I have them and it was a 15 minute task.  Do the $3001.00, it is a beautiful thing.




Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
12-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG | AMEX Biz Gold NPSL
Message 12 of 19
New Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?

@FireMedic1, Thanks for the insight. Let's forget the mortgage for a second since I don't have one. I'm aware an SSL would be rather pointless and possibly detrimental if I had active installments currently reporting. I'm only considering it since I do not have active installments but do have closed ones on my file. In your opinion are there any benefits to fico scoring by opening SSL when there are closed installments on file already (please disregard the AAoA and AoYA effects for a second). I've read having at least one open installment is good for scores.

 

I'm ultimately just looking for a 10-15 point boost from this move and don't see much downside other than reducing the age of my accounts a bit. Since I just got two new cards this month seems better to do it now than in 6 months or so but I could be wrong. Also if the move ends up being neutral it would serve to boost my credibility with NFCU which is also a primary goal of mine.


FICO 8 Scores
10/16/19 (Start of rebuild):
1/16/20:
FICO 9 Scores
1/16/20:
Next Moves
1. Garden Garden Garden. No new apps!
2. Transfer Quicksilver balance to NFCU Go Rewards.
3. Graduate Discover secured card
4. Rehab student loans out of default in 2020

Goal Cards: NFCU More Rewards Amex, Amex Hilton Honors, Amex Blue Delta SkyMiles®

Signature last updated 1/18/20
Message 13 of 19
Established Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?

My Wife and I saw 20 point boosts.  Both had good closed installment loans on file.




Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
12-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG | AMEX Biz Gold NPSL
Message 14 of 19
New Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?

@spiritcraft1, thanks for the data point. Seeing a point increase when you had closed installments on file is what I was curious about. I've decided to pull the trigger on it after my Discover and NFCU cash rewards report for the first time so I can isolate the effects to my FICO score caused by the SSL. I'll update this thread when that happens with the results. Thanks everyone.


FICO 8 Scores
10/16/19 (Start of rebuild):
1/16/20:
FICO 9 Scores
1/16/20:
Next Moves
1. Garden Garden Garden. No new apps!
2. Transfer Quicksilver balance to NFCU Go Rewards.
3. Graduate Discover secured card
4. Rehab student loans out of default in 2020

Goal Cards: NFCU More Rewards Amex, Amex Hilton Honors, Amex Blue Delta SkyMiles®

Signature last updated 1/18/20
Message 15 of 19
Established Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?


@850Dreamer wrote:

@spiritcraft1, thanks for the data point. Seeing a point increase when you had closed installments on file is what I was curious about. I've decided to pull the trigger on it after my Discover and NFCU cash rewards report for the first time so I can isolate the effects to my FICO score caused by the SSL. I'll update this thread when that happens with the results. Thanks everyone.


Sounds like a plan.  I have no proof but I am quite certain the SSL boosted our NFCU internal scores as well which lead to bigger limit second cards soon after.




Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
12-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG | AMEX Biz Gold NPSL
Message 16 of 19
Super Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?


@850Dreamer wrote:

@FireMedic1, Thanks for the insight. Let's forget the mortgage for a second since I don't have one. I'm aware an SSL would be rather pointless and possibly detrimental if I had active installments currently reporting. I'm only considering it since I do not have active installments but do have closed ones on my file. In your opinion are there any benefits to fico scoring by opening SSL when there are closed installments on file already (please disregard the AAoA and AoYA effects for a second). I've read having at least one open installment is good for scores.

 

I'm ultimately just looking for a 10-15 point boost from this move and don't see much downside other than reducing the age of my accounts a bit. Since I just got two new cards this month seems better to do it now than in 6 months or so but I could be wrong. Also if the move ends up being neutral it would serve to boost my credibility with NFCU which is also a primary goal of mine.


I was only going by this. "I will bring these loans out of default in 2020." Its only a few months away. But go after NFCU for future growth yes.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 17 of 19
New Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?


@FireMedic1 wrote:

The credit utilization category has six subcomponents:

  1. The amount of debt still owed to lenders.
  2. The number of accounts with debt outstanding.
  3. The amount of debt owed on individual accounts.
  4. The lack of a certain type of loan, in some cases.

 


Can you clarify what you mean by #4?  I thought the lack of a certain type of loan impacts credit mix, not utilization directly.

Assuming utilization on installment loans is a separate calculation from revolving, then I could see how the lack of installment loan can negatively impact the utilization portion of your score.

 

Message 18 of 19
Established Contributor

Re: Should I get Navy SSL with closed delinquent student loans on file?

If you have a installment loan, paid down to 9% or below, you get a very nice score boost.  It must be that without an installment loan you are withheld points and if it is nearly paid off all the better.   

 

My Daughter got the same boost with an NFCU auto loan.  I talked her out of buying with cash.  She got a loan and paid it down to about 5% immediately and her next payment is due in 2023.  It eliminated all that interest and she got a 25 point FICO 08 boost.




Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
12-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG | AMEX Biz Gold NPSL
Message 19 of 19
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