Adding an installment loan -- the Share Secure technique

[Anonymous]

Credit check total. 

http://ihttp://i279.photobucket.com/albums/kk150/df662/cards/11_zpshjb3bhfx.png279.photobucket.com/a...

Total accounts 8 (7 CC, 1 installment)

Authorized user BofA CC 16.5 years

Cap1 CC 8 months

WF CC 5 months 

Amex CC 3 months

Amex CC 2 months

Chase CC 2 months

Chase CC 2 months

Alliant secured loan 2 months

Now I am not new to credit, I just have not used it a long time. Have a few auto loans that aged off. A few baddies that aged off years ago, a judgment that was settled and removed mid last year (all from around 2003-2004). I was young and dumb in my mid 20's and ruined my credit. 

My starting score when I started rebuilding in Sep of last year was around 600 (or high 500's).

[Anonymous]

Had your AU for BOA been appearing on your reports for at least three months prior to the "short revolving history" note dropping off?  I am trying to figure out whether the AU might have appeared around the same time as the note dropping off.

The short description of the problem ("Your first revolving account was opened 8 months ago") implies that there's only one factor that the note is talking about ("age of oldest revolving account").

The long description, however, indicates that the note is either talking about "age of oldest" or it might also be talking about Average Age of Accounts (AAoA).  The two things are very different, so ultimately CCT's note is really unhelpful.  It's be a lot more helpful if it indicated which of the two factors it was.  I'm also skeptical about the value of the CCT message because it describes AAoA as the average age of revolving accounts -- while I suppose it's possible that FICO has a separate AAoA factor that considers only revolving, I haven't heard anybody talk about that.

Did the note drop off when the Cap1 account was 8 1/2 months old?  9?

None of this is terribly important in terms of practical stuff for you.  I just thought we might be seeing something about when certain reason codes stopped showing up -- e.g. like if it happened when your oldest account turned exactly 1 year old.  As far as practical stuff goes, you have got plenty of CCs, you have an installment loan now, you have lowered your installment U to under 9 %.  Basically you are pretty much set -- you just need to let all your accounts get older.

[yapsalot]

A shout out to CreditGuyInDixie

My Alliant loan just reported to EX and I got a 30 point bump from 769 to 799 on MyFico!!!! My loan reported last month to TU and EQ but with a balance of $80 on a $500 loan because my pay down hadn't hit at the time of the report. And for some reason the loan wasn't reported at all to EX last month. So after the pay down the balance was $40 and it got reported at that amount to EX this week, with the fabulous 30 point bump! I think all of the increase is solely attributable to the Alliant loan (most likely) because I got a 3B report from MyFico on May 22, 2016 and I am not aware of any other changes since then that might have occured but not triggered an alert from MyFico. I took out the Alliant loan because I was lacking in installment loans. No mortgage and no car loans. The only installment loan I had on my reports is a student loan paid off nearly 10 years ago and it was reporting on TU and EQ only. So on EX I had no installment loan at all. So I suspect I got a bigger bump on EX for that reason. Thanks again CreditGuyInDixie!

[Anonymous]

Hey YAL!  Delighted to hear that this technique (and the guide) is proving such a help to people.

It's interesting that you got a bigger bump on the CRA where you had no I-loans at all, including closed ones.  With the other two CRAs you did have a closed I-loan still reporting. 

It might be interesting therefore to hear how much of a bump you got from each CRA, so that we could compare them.  Note that if you did want to go that route, you'd need to be careful not to give us the bump based on the first time that the Alliant loan reported to EQ and TU -- because in those cases the loan was still reporting at maybe 16% or so.  You'd have to look at that difference between EQ/TU after the loan is reporting at < 8.9% vs. before it appeared at all.  And you'd have to be certain that the bump was atrributable solely to the loan, not to changes in CC utilization, number of cards reporting a $0 balance, etc.

That's just a fun sideline.  It's just one person's profile, it doesn't prove something definite about FICO 8, etc.  But it might suggest  (faintly) how much weight FICO gives to a closed I-loan. 

[yapsalot]

CreditGuyInDixie,

I have some data on a related issue regarding utilization.

When the Alliant loan first reported to TU and EQ there were a lot of other things happening at the same time such that I can't get a good handle on the score bump that is solely attributable to the initiation of the Alliant loan. I had some other new accounts and a balance change that happened about the same time, making it impossible to isolate the score change attributable to the Alliant loan on TU and EQ.

I do, however, have some other data from TU that just came in the last few days bearing on utilization. The Alliant loan first reported to TU last month with a $80 balance on the $500 loan. But a few days ago the new balance of $40 reported to TU and the TU Fico score jumped from 788 to 800. I think this 12 point increase is solely attributable to the change in utilization. Also, the balance change on the Alliant loan has not come through to MyFico as an alert yet. So I might have some data on that in a few days and will update the forum. Thanks again for posting the detailed guidance on how to get the loan.

[shakalaka]

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@shakalaka wrote:

Thanks for the detailed guide. I bank with them since 2012, so I didn't have to apply for membership first. It took me 2.5 hours from appying for the loan to getting it finalized and funded. Now waiting for the loan hitting my report. Let's see if it gets me closer to the 800 

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So the first result is in. 8.8% of the original amount reporting and TU jumped 25 points. Waiting for EX and EQ to update

[Rebuilding69]

I was hoping to do this with NFCU as I bank with them & I've never had an installment loan before, and I'm planning on getting a car in 8 months or so. But, when I went to the NFCU website to check on their shared secure loan they have available, you have to either call or go to a branch to do it, so does that mean  shouldn't do this with NFCU? Don't want the CSR's asking questions on everything I'm doing(the paying it down to <9% part).

If it isn't a problem calling or going in to a local branch, I'm assuming everything else would be similar?

[Anonymous]

I share your personal bias, which is to avoid "calling the bank" in situations like these if there is a solution that is largely CSR free.  The Alliant approach, as documented in the step-by-step guidance, is such a solution.  So I would just go with Alliant for your Share Secure loan.  Once you set everything up you can basically just ignore it.

[Grafton88]

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@Rebuilding69 wrote:

I was hoping to do this with NFCU as I bank with them & I've never had an installment loan before, and I'm planning on getting a car in 8 months or so. But, when I went to the NFCU website to check on their shared secure loan they have available, you have to either call or go to a branch to do it, so does that mean  shouldn't do this with NFCU? Don't want the CSR's asking questions on everything I'm doing(the paying it down to <9% part).

If it isn't a problem calling or going in to a local branch, I'm assuming everything else would be similar?

___________________________________________________________________________________________

I did both of mine through NFCU.  The first was when my file was thin.  I couldn't even generate a score.  They gave me one for $500 with a term of 6 months.  I paid it off and now have a second one.  This one was for $500 with a term of 12 months.

I made sure I didn't have auto-pay selected.  I have paid off more than 90% of the loan.  When that happened my scores jumped about 25 points.  My credit reports stated I had made substantial payments on my loan.  I now make $5 payments every month.

[manyquestions]

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@Grafton88 wrote:

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@Rebuilding69 wrote:

I was hoping to do this with NFCU as I bank with them & I've never had an installment loan before, and I'm planning on getting a car in 8 months or so. But, when I went to the NFCU website to check on their shared secure loan they have available, you have to either call or go to a branch to do it, so does that mean  shouldn't do this with NFCU? Don't want the CSR's asking questions on everything I'm doing(the paying it down to <9% part).

If it isn't a problem calling or going in to a local branch, I'm assuming everything else would be similar?

___________________________________________________________________________________________

I did both of mine through NFCU.  The first was when my file was thin.  I couldn't even generate a score.  They gave me one for $500 with a term of 6 months.  I paid it off and now have a second one.  This one was for $500 with a term of 12 months.

I made sure I didn't have auto-pay selected.  I have paid off more than 90% of the loan.  When that happened my scores jumped about 25 points.  My credit reports stated I had made substantial payments on my loan.  I now make $5 payments every month.

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Do you know if NFCU will do a $500 loan for more than 12 months? Is there a hard pull or soft pull?