Adding an installment loan -- the Share Secure technique

[Anonymous]

Congrats Poppa. It better than nothing!

[Poppa]

---

@Anonymous wrote:
Congrats Poppa. It better than nothing!

---

Thanks. I expect It'll level out in a few weeks or months and I'll have the scores I want. I have those last two cards turning 3 months old in a few weeks. 

[Anonymous]

Once you've paid it down to $44, are you then able to withdraw the $456 that they wouldn't need as collaterall anymore? I guess my ultimate question is how long would my $500 be tied up?

[Anonymous]

---

@Anonymous wrote:

Once you've paid it down to $44, are you then able to withdraw the $456 that they wouldn't need as collaterall anymore? I guess my ultimate question is how long would my $500 be tied up?

---

Yes.

From the guidance:

An hour later [after you have signed the loan documents] you will have the $500 loan deposited in your account.  Thus your account will have a little over $1000 in it, of which $500 is frozen and inaccessible.  As you pay down the principle on the loan, a corresponding amount will get unlocked and become "available."

[Anonymous]

PPS.  Thus some people only have their initial $500 tied up for 11 days from the time they first initiate the transfer of the money into Alliant to the time they get it back.  Example:

March 13: Open a savings account and transfer $500 into it.

March 15: Money arrives and is available in your savings account.

March 16: You apply for the loan.

March 20: LO calls you and you sign paperwork.  Loan appears.

March 21: You pay down loan

March 22: You transfer money from Alliant back to your external bank.

March 24:  Money arrives at your external bank.

Of course the whole process might take longer, depending on how long any one of those steps take.  Two weeks total is a better guess, three is very safe (assuming you hear back in a few days from the LO).

[Anonymous]

Got it. I had previously been told that it would be tied up for a couple months, but I am glad this cleared that up. I misread the intial post. Thanks guys

[Anonymous]

It is shared secured loan right?
Why do they need my spouse's info? It says in my state, they require the spouse info.

[Poppa]

So I know to let only 1 credit card balance report for the best Fico score. Does an installment loan balance count towards that?

Should I now not let any credit cards report a balance to get the best scoring?

[Anonymous]

First off thanks to CGID for the very thorough write-up of this technique. I wanted to post here to figure out an unexpected reaction from this procedure. I started the loan in February, paid down the balance to <44, and deleted the auto-pay. I've just been waiting for the loan to post and show up on CK. Today it refreshed and my TU score dropped 43 points and my EF dropped 14 points. There were no other changes on my account just a new credit card that already posted in early february and I'm guessing the point loss was primarily from the drop in average age of accounts and possibly having another open balance because of the loan. My understanding was that the bureaus would value the mix of credit types more than the loss of account age, but maybe someone can give me some insight into why my scores didn't react in a positive way? Also, this is my only installment loan. 

[bourgogne]

---

@Anonymous wrote:

PPS.  Thus some people only have their initial $500 tied up for 11 days from the time they first initiate the transfer of the money into Alliant to the time they get it back.  Example:

March 13: Open a savings account and transfer $500 into it.

March 15: Money arrives and is available in your savings account.

March 16: You apply for the loan.

March 20: LO calls you and you sign paperwork.  Loan appears.

March 21: You pay down loan

March 22: You transfer money from Alliant back to your external bank.

March 24:  Money arrives at your external bank.

Of course the whole process might take longer, depending on how long any one of those steps take.  Two weeks total is a better guess, three is very safe (assuming you hear back in a few days from the LO).

---

Hi there, wanted to verify, I can transfer out nearly the entire $ 525 that I used to initially fund the SSL for my friend? 

DP loan was taken out 2/24/17 and reported 3/10/17.  hard to say the exact impact as she apped and got 3 cards the same week ($71K!) as the loan reported but her aaoa is ~20 years so the inq probably diid not have much impact.  the SSL certainally had a >20 pt impact accross the board, totally worth the trouble and it could be that is goes higher as her scores settle in. 

Thanks CGID!!

03/11/17 FICO8 EX654 TU649 EQ676 | 5/2/1

03/04/17 FICO8 EX633 TU636 EQ655 | 3/0/0

12/29/16 FICO8 EX544 TU603 EQ564