Adding an installment loan -- the Share Secure technique

[Anonymous]

It should help a person even if that person has serious derogs as you do.  But three caveats:

(1)  As indicated in the guidance, you must not have any open installlment loans.  That means that if you have any installment accounts on your report, they must all have a status of closed and you must have an amount owed of $0 on them. I am no expert on serious derogs, but if you have charged off loans or loans that were part of the BK I can imagine that interfering with how the whole installment U piece of this technique would work.

(2)  The typical benefit of 30 points might be quite a bit less for a profoundly dirty report.  E.g. 15-20?  We have little test data on this so it is hard to say.

(3) Remember that you have to convince Alliant to let you join the credit union and to do the loan.  They do a soft pull of your EQ report as part of that process.  It's possible that with substantial derogs they might say no, though your scores are much better than they might be so you may be fine there.

[Anonymous]

Thanks Creditguy! I am very thankful for your reply. I actually opened a savings/checking acct today2-20. I've funded the acct and I'm just waiting for it to show up. I did the mobile check method. Do you think I will be denied the secured loan? I have gotten one collection deleted but hasn't shown yet. I think it will date another month. Do you think I should wait to try for the secured loan? Thanks for your input!! I follow you religiously!!!

[Anonymous]

My guess is that you will be approved, given that the loan is being secured by cash, though I am so not an expert on how Alliant works.

I would definitely not allow a fear of being turned down be the reason not to apply for the loan.  After all, even if you are turned down, the inquiry was just a soft inquiry, right?

Now... will this help your score?  Wish I could say.  But certainly if you do decide to go for it you'll be helping us.  You'll give us two datapoints:

(1)  Whether Alliant approves a person with scores in the low 600s.

(2)  Whether the technique works on a profile like yours and if so by how much

But you have to think about what is best for you first.  If you decide to go fo it, keep us posted!

[Anonymous]

Hey CGID! Thanks for the reply, very helpful as usual. Yes you and Newhis are correct; I misspoke about the Discover credit score card. I hadn't actually checked that one in a few weeks and forgot that it was also a legit FICO score. But I *have* been using the Experian Credit Tracker service for the last 8 months and that is also a legit FICO 8 score (and a full report at any given time) so that should be a better test tube when the SSL reports there. I was surprised that it showed up on the EQ FAKO of CK and didn't increase the score that much, but I didn't take into account that this techniques effect on FAKO scores may not be very pronounced.

Also, about that repo, it is listed on my Experian report as:
Account Status: closed
balance: $0
payment status: paid, was a repossession.

Oh and FYI, I'd like to add my DP to the other guy with the bad derogs... Alliant approved me for the loan while my Experian FICO was 636.

[Anonymous]

Thanks DrunkAmex that's good news! I'll keep you guys posted on my journey with this.

[Anonymous]

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@Anonymous wrote:

Oh and FYI, I'd like to add my DP to the other guy with the bad derogs... Alliant approved me for the loan while my Experian FICO was 636.

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That's helpful, DAG!  It's not the perfecf datapoint we need, however, because it is Experian, and I think several people have confirmed that Allaint does an Equifax pull.  If we were to assume that your EQ FICO score was the same or less, that would be great, but scores can vary a lot between the three bureaus.

Still that points us in the right direction.

[Anonymous]

I  started my process with Alliant 2-21. I followed Credit guy's guide exactly. I have my 1st pull on 3-1-17. Paid down to 80 today. I would like to get this down to <8.99 utilization before it reports  as I recall they report at the end of the month which would b 2-28 correct? Should I wait to pay down more ?

Accounts Current Balance Available Balance Rate Dividend (YTD)  

Savings Account	$605.00	$520.00	0.995 %	$0.00	Options »

Loan Accounts (As of Wednesday 2/22/2017) Accounts Due Date - Payment

Share Secured Loan

12/01/20 - $2.74

$80.00

--

Scheduled
Date From To Frequency Amount  

12/01/2020

Savings Account - S01

Share Secured Loan - L01

Monthly

$9.19

Edit  |  Delete

Also, Why does my first payment on 12-1-20 say $2.74? Im afraid I messed this up 

[manyquestions]

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@Anonymous wrote:

I  started my process with Alliant 2-21. I followed Credit guy's guide exactly. I have my 1st pull on 3-1-17. Paid down to 80 today. I would like to get this down to <8.99 utilization before it reports  as I recall they report at the end of the month which would b 2-28 correct? Should I wait to pay down more ?  I'd pay it down  today.  I think it might take a few days for the payment to percolate through their system.  If it matters to you, I would't try to hit the last possible day, you might miss.

Accounts Current Balance Available Balance Rate Dividend (YTD)  

Savings Account	$605.00	$520.00	0.995 %	$0.00	Options »

Loan Accounts (As of Wednesday 2/22/2017) Accounts Due Date - Payment

Share Secured Loan

12/01/20 - $2.74

$80.00

--

Scheduled
Date From To Frequency Amount  

12/01/2020

Savings Account - S01

Share Secured Loan - L01

Monthly

$9.19

Edit  |  Delete

Also, Why does my first payment on 12-1-20 say $2.74? Im afraid I messed this up   It has to do with how much you've paid it down so far. Don't worry about that. It's not important.

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[Anonymous]

Thanks ! So best bet would pay it down to $44 now? What if  I do not have luck  with deleting the recurring  early?  When should I start trying? Sorry for all of the questions. I want to get this right !

[Anonymous]

Paying it down tomorrow to 8.99% is fine.  Just watch the auto-pay and try to get it turned off promptly.  I'd see if you can delete the autopay two days before the first payment -- or one day before.

Unsure what's going on with the $2.74 issue.  Maybe somebody else can hazard a guess?  (I see ManyQ already chimed in.  He's a smart fella.  Listen to him.)