Adding an installment loan -- the Share Secure technique

[Nychuck]

I paid down about 91% and the next payment is due in 2020; however, in attempting to change the amount to a smaller amount, it would not budge. I had to delete the recurring payment in its entirety. Is this plan ok if you pay $0? What should I do?

[Anonymous]

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@Nychuck wrote:

I paid down about 91% and the next payment is due in 2020; however, in attempting to change the amount to a smaller amount, it would not budge. I had to delete the recurring payment in its entirety. Is this plan ok if you pay $0? What should I do?

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Hi Nychuck.  Welcome to the Forums!

Yes, you'll be ok.  In fact the guidance specifically recommends that you delete the autopay.  Take a look at  Step 4 of the guidance ("Pay It Down").  It reads:

When you have [made the initial big payment], go back to the Account Summary page.  You will see that the Current balance is very low.... You will also see that the Due Date has been pushed out way WAY into the future.

The next steps are easy.

(a)  Wait for the first autopay to go through.  If the autopay has changed so that the next "scheduled transfer" date has been pushed way ahead in time, ignore that.  It is likely that your autopay will still go through on the first date that you agreed to.  Wait until a couple business days AFTER that date.  Then look in your savings account.  You should see that the payment still went through....

(b)  Now go back to that recurring transfer that your loan officer set up.  If you try to delete the autopay before it has gone through once, most people report getting a big red error message.  So now that you have waited till after the first autopay, you can delete it.  Just click DELETE.  It will ask you if you are really sure.  Say yes.

Your autopay should now really be deleted.

 Since your Due Date has been pushed way into the future, you don't owe anything until that date.

Be sure to read all of Step 4 very carefully, though.  It gives you guidance on how to set up small quarterly payments that will ensure that your accounts stay active.

[Anonymous]

Hey CGID,

Quick question. I did end up adding the SS line for for Transunion. It was paid down before it posted. I pulled the 3 bureau report on 10/13 and everything is showing as it should per your guide, but my score did not change.

Do you think it will take another month for score to jump?

[Anonymous]

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@Anonymous wrote:
Hey CGID,

Quick question. I did end up adding the SS line for for Transunion. It was paid down before it posted. I pulled the 3 bureau report on 10/13 and everything is showing as it should per your guide, but my score did not change.

Do you think it will take another month for score to jump?

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What tool are you using to check your reports?  When did you last pull your reports?

What tool are you using to check your scores?

Also, just to confirm, prior to adding the Alliant loan, you had no open installment loans?  No mortgage, no student loans, no car loans, no personal loans, etc?

[Anonymous]

CreditCheckTotal. Ran the 3 bureau report that they give once a month. Scores are provided in that report as well.

Correct, all 3 my reports show different account. EQ 2 installments, EX 1 installment, TU 0 installments. When I posted before you told me you thought it would be a good idea for my TU report since there were no installments. Prior to this month it was listed as a favor in my score when I pulled report. Now it's not listed as a factor but no boost.

[Anonymous]

Interesting.  If you actually pulled the scores (rather than relying on a passive "alert" system) and if the report that came with the new score shows the Alliant loan now present on TU and with an installment utilization < 9%, then I would expect a boost from TU.

I suppose it is possible that you received the boost but something else on your report changed to cause your score to decline by exactly the same amount.  (E.g. changes in number of cards reporting $0 balances, an increase in CC utillization, etc.)

But assuming that this did not happen, I guess you should just wait a month and try again.  Still doesn't explain why it didn't show this month since the report that was created at the same instant as the score shows the loan present.  In theory I don't see what would make the score get better in a month, but maybe it will.

Could you keep us posted?

[Anonymous]

Thanks for this!  Since I have become a member of this forum I now have 2 new checking and savings accounts at 2 new CU's lmfao with a 3rd probably around the corner as well....Diversifying my money hahahaaa

[Anonymous]

Depending on how far you want to go, you can make a couple thousand dollars a year just from banks that are offering promotions for opening a bank account with them.

http://www.doctorofcredit.com/a-beginners-guide-to-bank-account-bonuses/

http://www.doctorofcredit.com/best-bank-account-bonuses/

[noobody]

Joined CU and opened saving account on 10/7

SSL loan approved on 10/17, 1st scheduled payment of $9.74 is due on 10/25/16.

Made payment of $420 on 10/17

Was able to delete the schedule payment on 10/22.

Now it shows next payment due is $2.74 on 7/25/2020.

Just waiting to see how close I can get the Holly Gail of 850.

Q: is there any meaningful difference between $80 and $44 balance reporting FICO wise? I might just make a $36 payment after I make sure the 10/25 scheduled payment do not go through.

[Anonymous]

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@noobody wrote:

Q: is there any meaningful difference between $80 and $44 balance reporting FICO wise?

Yes.  A $44 balance on a $500 loan is < 9%.  Throughout the guidance, it stresses repeatedly that FICO gives you the maximum benefit when your total installment utilization is < 9%.

I might just make a $36 payment after I make sure the 10/25 scheduled payment do not go through.

That is in fact what the guidance recommends.  Pay it down a big amount, delete the autopay, then pay down the remainer when you are certain that the autopay did not go through.  If someone is terribly strapped for time, then it probably makes sense to just pay it to $44 immediately, with the possibility that another $9 payment will go through.

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