(UPDATE: 16 pt bump) Navy Federal SSL first payment timing question

[Anonymous]

Update: It took 9 days to show up on Experian report from date of application. Still not on Equifax or Transunion (imagine it'll show there in next 48 hrs). My FICO 8 scores on experian jumped 16 points. I ended up paying the loan down 92% within the first 48 hrs of receiving the funds. The loan reported the full initial amount ($3,100) and the current accurate balance remaining of 8%.

My experian report only has 1 old unpaid charge off that is over 6.5 years old so it is a dirty scorecard. Utilization is good across the board. There were no open or closed installments reporting before the Navy SSL.

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I've read quite a few posts on the NFCU SSL strategy for people with no installment loans reporting. I've determined this will help my profile. 

I applied and was accepted for a 60 month $3,100 SSL loan through nfcu with the first payment due March 16th 2021. My first question is does it matter how long I wait to make my first lump payment to make strategy successful? More specifically should I wait for the full loan to report to credit bureaus and then pay the lump payment (obviously before 3/16/21) or can I go on and pay my lump payment now and it'll have no impact on how it is reported? Some random post said paying too early will have them report a smaller overall loan amount if it is the first time reporting to the bureaus and that makes no logical sense to me. 

2nd question:  A few people have stated needing to pay a small amount every few months after the lump payment to keep the account active. Is there any truth to this or are people just paranoid. It also makes no logical sense that nfcu could make the loan due just because of prepayment if that isn't listed in the paperwork. If after my lump payment my next payment is pushed out a few years will someone with experience please let me know if I should make a small payment a few times a year and if so is there a minimum needed?

The goal is obviously to keep the loan open and in good standing for the max duration possible.  

Thanks in advance for any helpful replies.

[satio]

I have an active NFCU SSL for the same purpose that I took out in 2019.

You can make the first payment anytime on or before March 16, 2021. Make that lump to be something that brings the balance below 8.9 percent.

You then likely see your next payment due pushed out to 2025.

At that point you can make monthly or quarterly payments of some amount to keep the reporting active.

I initiated my SSL in October 2019. I immediately made a lump sum payment to bring it under 8.9 percent. That made my next payment due to be $54.72 February 2024. Since that time I make a monthly payment of $1 which thereby reduces my Feb 2024 payment due by $1. The current due is $38.72 due Feb 2024. 

When I reach Feb 2024 I will have roughly 4 more payments due of $54.

Some members do all the factoring to make a $3-4 payment per month so that they do not have 4-5 payments of higher amount due at the end.

I chose not to overthink it and just pay a $1 per month. I'm not worried about a balance of $200 in Feb 2024 nor a $54 a month payment.

[blindambition]

You want to make first payment before it reports, so it's not reporting 100% utilization. It will balance out next month if it reports before payment shows.

[Anonymous]

Okay awesome, thank you both. I'll make that first payment today. Cheers.

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[Anonymous]

Update: Payment was pushed until 7/16/25 after paying 92%

[Anonymous]

Update: It took 9 days to show up on Experian report from date of application. Still not on Equifax or Transunion (imagine it'll show there in next 48 hrs). My FICO 8 scores on experian jumped 16 points. I ended up paying the loan down 92% within the first 48 hrs of receiving the funds. The loan reported the full initial amount ($3,100) and the current accurate balance remaining of 8%.

My experian report only has 1 old unpaid charge off that is over 6.5 years old so it is a dirty scorecard. Utilization is good across the board. There were no open or closed installments reporting before the Navy SSL.

[AllZero]

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@Anonymous wrote:

Update: It took 9 days to show up on Experian report. Still not on Equifax or Transunion (imagine it'll show there in next 48 hrs). My FICO 8 scores on experian jumped 16 points. I ended up paying the loan down 92% without the first 48 hrs of receiving the funds. The loan reported the full initial amount ($3,100) and the current accurate balance remaining of 8%. My experian report only has 1 old unpaid charge off that is over 6.5 years old so it is a dirty scorecard. Utilization is good across the board. 

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Congratulations on your success. Once you get onto a non derogatory score card should yield a nice score increase.