Adding an installment loan -- the Share Secure technique

[Anonymous]

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@Anonymous wrote:

When does Alliant typically report a new secured loan to the CRA's?  Are they consistant with the timing going forward?

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Hi Sheridan.  From the guidance (see below).  The key sentence is in blue.  Also of importance is the section in green.

STEP 5: WAIT FOR THE LOAN TO REPORT

If you don't have a tool that allows you to pull your credit reports for free at least once a month, you should probably get one.  Credit Karma is a good cost free choice, though you can ignore their scores and any recommendations they give you.  It's hard to beat as a free method for seeing your reports, which Karma will give you as often as once a week.

Look for your loan.  Alliant reports all its loans for all consumers to the three credit bureaus on the last day of the month.  In theory if the LO finalizes your loan at least three business days before the end of the month, it would likely be reported at the end of the month.  That seems plausible anyway.  But it's also possible that they have to do some extra housekeeping before it reports the first time. 

Remember too that just because Alliant reports your loan to the credit bureaus on a certain date, it could take 3-4 business days before it appears on a particular bureau's report.  Some people here on the forum have experienced longer wait times than that for all kinds of accounts.  Just depends on the CRA, what its servers are doing, etc.

Finally, if you need the reported balance to also be low, you should make sure that the new balance has fully registered a few business days before the end of the month -- just like with a credit card or any other account.

[Anonymous]

Thanks, CGinD.  I'm anxious to see this report soon so I can test the effects on a clean vs. dirty scorecard.  My EX is clean, while my EQ has a judgement that is due to fall off  this month. It's still on there as of today.  Otherwise EXACTLY the same data on each. 

[newhis]

I just opened the Alliant account, no loan yet, and I see there is an option to add "joint owner" to the account.

My DW has a car loan, but my 18 yo only has AUs.

I wonder if I can/should add as a joint owner on savings account then open a joint loan (don't know if possible). Or can I open the loan and then add someone as joint owner (loan) and the loan reports to both credit files?

[Anonymous]

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@newhis wrote:

I just opened the Alliant account, no loan yet, and I see there is an option to add "joint owner" to the account.

My DW has a car loan, but my 18 yo only has AUs.

I wonder if I can/should add as a joint owner on savings account then open a joint loan (don't know if possible). Or can I open the loan and then add someone as joint owner (loan) and the loan reports to both credit files?

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Fascinating question, Newhis.  Short answer is : I don't lknow.

Longer answer:

You could call Alliant and ask.   My tendency with this whole guidance, however, has been one of "Don't call the bank."  Here's what I wrote at the very end:

"Avoiding bothering the CSRs is good policy when you can, especially when you are doing something clever like this.  It's absolutely fully legal and fully within Alliant's loan terms, but it's probably also a good idea to minimize the extent to which you are pushing it onto the CSR's radar.  Some people here have run into CSR's limiting their options when they do that."

It's important to remember that this whole technique is operating at a loss for Alliant.  They have to do a bunch of paperwork and then they end up making just a few dollars off of it (due to the way we make the early payoff).  Thus I tend to minimize the extent to which we are making them think about what we are doing.

Here's an article over at Doctor of Credit that influenced my thinking in this regard:

      http://www.doctorofcredit.com/dont-call-the-bank/

The good news is that you could achieve everything you wish to accomplish for your son via the Technique as described in the guidance -- as follows.  Execute the steps of the technique first for yourself.  By the time you get to step 5, you will have most of your initial $500 deposit unlocked.  Then open a savings account for your 18-year old child.  (The child will have to participate, by clicking the appropriate buttons where he/she agrees, etc.)  Now continue to execute the steps of the technique for your child (again with your child's participation).

The end result will be that you will have a loan in your name and your child will have one in his/her name.  You can be the de facto custodian of all the Allaint accounts and make the payments.  You'll have to explain the concept to your child and that he/she can (and should) basically forget about it.

Regardless, you should be getting a couple credit cards in your child's own name as well.  You could do the exact same thing with them if you want: your kid helps you open them and in theory he/she is the sole owner of the cards, but in practice you manage them and in fact your kid never sees them during the next few years.  Eventually you give him the actual plastic when your kid turns 21 (say) -- as a present.  (Though officially the cards always belonged to your kid.)

[newhis]

Thank you CreditGuyInDixie, after reading your post I will not call the bank and will not try to add my child.

I'll open the loan in a few weeks. In the future we can open a new one for my child. I was just curious. No other account I have, list an option to add a joint owner.

[Anonymous]

Around the 1st of the month.

My wife's all reported at the same time
1 of mine reported a month after the first two

[noobody]

Alliant SSL account has been reported to at least TU and EQ according to CK and wallethub, their FAKO doesn't move an inch, guess AAoA and new account hit offset by account mix gain.
Impatiently waiting for real FICO update by my credit card companies in coming days and weeks

[getrdone1]

just read about noobody and their experience with the savings secured loan...i had membership and a credit card already with alliant..i applied for a secured loan in early october and waited almost a week before i called as i had no response back about my loan application..two days later and still no response from my loan officer so i  called again.. he told me that i had an email sent to me shortly after i applied..but i never got it..anyway, i answered some questions..got an auto payment date set up..and then proceeded to pay down to $44.00...all done by october 14 and was just waiting patiently...just got an alert from credit tracker from my capital one card...strange because i have cct and nothing from them..credit tracker said i had a new account reporting..today november 6....new credit score on CCT after 3 fico score update on equifax is 838,....transunion is 841,..experian has no info yet still  at 800...equifax is up 35 points...transunion is up 40 points...13 new accounts in the past 2 years, no inquiries in the last 7 months or new accounts in the last 7 months...6 inquiries on equifax, 5 inquiries on experian, and 2 inquiries on transunion...oh,  i have no loans on my reports what-so-ever, as i always pay cash for toys, cars and trucks..no mortgage and carry a 0% utilization with about $150 dollars reporting...just thought i would share...these scores just one year past my bankruptcy falling off my  credit reports..thanks to all those that put time and effort to find out what has worked for them and helping others to have something extra to look forward to for them as well...i know CGID for one put a lot of time and effort into this fine piece of work and others have contributed with their stories and experiences...hope this helps someone else..

[Anonymous]

Delighted to hear about your 35/40 score boost for EQ/TU.  Let me know how EX does.

PS.  I notice you have $150 in CC debt reporting out of a total credit limit of 200k+.  You also describe that as a CC utilization of 0%.  Are you getting the "0%" figure from CCT?  Credit Tracker?  Both?

FICO rounds all utilization percentages up, which is why FICO actually perceives you as having a 1% utilization.  If FICO did think you had a 0% util, then you'd take a major score hit.  No way you'd have scores in the 830s or 840s.

If you are describing your utilization here on the forum in a future post, it's probably best to say 1% or people will think you have $0 across the board on all your credit cards.

Thanks again for the update, hoss.  Very helpful.

[getrdone1]

just got back on and it was both credit tracker and CCT that say my utilization is 0% on revolving limits of $293,440..soon to go up because of a $6,000 discover cli...revolving debt is $215, installment debt shows $44, and total debt is $259.00...but definitely 0% revolving debt usage..however discovers experian reprt had me at 1% on their credit score info on $150 total debt...go figure..have not been on myfico scores since about august....my score only drops about 14 points on all bureaus when i report a 0 balance on everything and it is still at 0%..so as long as i have a balance and 0% utilization, it does not go down.. only when 0 balance is reported,will i lose about 14 points....