@Anonymalous wrote:I'm considering getting an SSL to boost my credit score, but I think it might hurt me.
Let me explain. My credit profile's very simple. Six months ago, I had no credit. Not a thin file, but an empty one. Five months ago, I got my first card. I've paid it off every month since, with 1% utilization. This month, I got added as an AU to a (store) card, with 23 years of perfect history. It reported to all 3 bureaus, and my AAoA jumped from 0 years, 5 months to 11 years, 9 months.
I don't have a pre-AU FICO score, because I was unscorable. But my TU and EQ Vantage Scores both jumped a massive 78 points. And today, Experian reported a FICO score 8 of 763, which is a few points higher than my FAKO scores. (I'm still a couple weeks shy of the 6 month mark, so apparently the AU allowed them to generate a score early.) My credit reports all have the same basic information, so I expect my EQ and TU FICO scores to be close.
With no installment accounts, I'm an obvious candidate for the SSL technique. So my plan was to get a FICO score, then get an SSL, pay it down to 8.9%, wait for it to report, and then get some cards.
But since that 23 year history gave me an almost 80 point jump, will an SSL hurt me in the short run? Because the first time I add a new tradeline, my AAoA is going to drop 4 years, and the second will cause it drop another 2 years. And looking at the primer, AAoA and AAoRA are both scoring factors, so it sounds like an installment loan will have at least some of the same effect as a new credit card. Will that drop hurt me more than the ~30 point bonus from an SSL?
My real question is whether I should get the installment loan first. Or a new card first, then the installment loan. Or even a couple new cards first, then the installment loan. Any ideas? Thanks in advance.
I wouldn't clutter my account with it. I would just get something I actually want to have.
@Anonymalous wrote:@SouthJamaica, you think I'm overthinking it? Even if my score is fine, I was thinking an installment loan might help add a little depth if there's a manual review or they strip out the AU card.
I didn't think that before, but now I do. Yes I think you are overthinking it 
@Anonymous wrote:The SSL was a hot topic a few years back when Alliant had the perfect option for it. I got one, paid it down to below 10%, and got a substantial points boost for the four years of the loan. I forget the actual amount, but it was at least 30 points. My AAoA was very low at that point, so the impact that had was nothing compared to the benefit of the loan in the mix. This was in 2016.
When it dropped off, those points dropped off with it. Unfortunately, Alliant pulled the plug on those loans, and such a sweet deal no longer exists that I know of. My scores are good enough now (780's) that I don't need it anymore, but if I did, I'd be talking to my credit unions about some sort of personal loan. Just depends on how important the points are and how much you're willing to pay for them in unnecessary interest. The amount I paid for for the Alliant loan was trivial.
Thanks for the DPs, they match what I've read. I'm in with Navy Federal, and their SSLs work like Alliant's used to. The downside is they have a higher minimum for a 60 month loan (north of $3000 instead of Alliant's $500). I worked out the amoritization schedule, and if the loan is paid down to 8.9% immediately, it amounts to less than $25 in interest over 5 years. While that's considerably more than the old Alliant SSL, it's probably less than an unsecured personal loan with a much higher interest rate (and a HP).
But @SouthJamaica may be right. I took the plunge and picked up the CCT trial, and it turns out my FICO 8 scores are even higher than my FAKO scores (763 to 784). So I'll probably just apply for a new card, though I haven't ruled out an SSL a bit further down the road.
I have to say, credit is weird. 
@Anonymalous wrote:
@Anonymous wrote:The SSL was a hot topic a few years back when Alliant had the perfect option for it. I got one, paid it down to below 10%, and got a substantial points boost for the four years of the loan. I forget the actual amount, but it was at least 30 points. My AAoA was very low at that point, so the impact that had was nothing compared to the benefit of the loan in the mix. This was in 2016.
When it dropped off, those points dropped off with it. Unfortunately, Alliant pulled the plug on those loans, and such a sweet deal no longer exists that I know of. My scores are good enough now (780's) that I don't need it anymore, but if I did, I'd be talking to my credit unions about some sort of personal loan. Just depends on how important the points are and how much you're willing to pay for them in unnecessary interest. The amount I paid for for the Alliant loan was trivial.
Thanks for the DPs, they match what I've read. I'm in with Navy Federal, and their SSLs work like Alliant's used to. The downside is they have a higher minimum for a 60 month loan (north of $3000 instead of Alliant's $500). I worked out the amoritization schedule, and if the loan is paid down to 8.9% immediately, it amounts to less than $25 in interest over 5 years. While that's considerably more than the old Alliant SSL, it's probably less than an unsecured personal loan with a much higher interest rate (and a HP).
But @SouthJamaica may be right. I took the plunge and picked up the CCT trial, and it turns out my FICO 8 scores are even higher than my FAKO scores (763 to 784). So I'll probably just apply for a new card, though I haven't ruled out an SSL a bit further down the road.
I have to say, credit is weird.
Are you sure about that $3K minimum for a 60-month SSL? It used to be $500. I still have one going .....