Adding an installment loan -- the Share Secure technique

[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]

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@Anonymous wrote:

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. 

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I know that the Vantage scores that Credit Karma uses don't react like actual Fico scores do to this technique.

Try the $1 free trial at Credit Check Total for your Fico scores. Also Discover gives out a free Experian Fico score.

Google Discover Scorecard. Vantage scores aren't important.

[Anonymous]

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@Poppa wrote:

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?

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Keep doing what you're doing with your cards. 1 reporting a low percentage, the rest at $0. If it's kind of a hassle, add a recurring monthly payment to the card and autopay it in full every month so you don't have to give it any attention.

[Anonymous]

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@Anonymous wrote:

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

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I don't know what state we're talking about but it's either to specifically include or exclude your spouse in the liability should you default on the loan or your spouse is named as a beneficiary if you have money in your savings account. 

[Anonymous]

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@Anonymous wrote:

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@Poppa wrote:

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?

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Keep doing what you're doing with your cards. 1 reporting a low percentage, the rest at $0. If it's kind of a hassle, add a recurring monthly payment to the card and autopay it in full every month so you don't have to give it any attention.

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And just as a postscript to Driver's great response, remember that the All Zero Except One (AZEO) approach isn't necessary most of the time.  Many people (me included) are fine with not having an optimized score most months, because most months we are not applying for credit.  All the extra points you get from AZEO are points you can get in the 45 days prior to an important credit pull.

[Anonymous]

Ahh, that makes sense. I know that vantage scores are not what banks use to verify credit with someone. I checked my fico through the discover scorecard and it's at 755 and hasn't been updated with the new SSL account. I'll have to check back in on the 27th of this month to see how it affected my fico. I'll make sure to post here when I get the new numbers. Thanks for responding.

[Poppa]

Not sure my exact question was answered. For best Fico score if only one balance is best then that includes not only credit cards but loans as well? So if only this loan reports then that would be my best score? For when I need it to be at it's best.

[Anonymous]

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@Poppa wrote:

Not sure my exact question was answered. For best Fico score if only one balance is best then that includes not only credit cards but loans as well? So if only this loan reports then that would be my best score? For when I need it to be at it's best.

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The All Zero Except One (AZEO) strategy refers to one's revolving balances.  You always need to have at least one revolving account showing a positive balance.  Furthermore that one account should be:

(1)  An account in your name (not an AU card)

(2)  A true credit card (not a charge card)

(3)  A card with at least a $5 balance

(4)  A card with a credit limit of < 34.9k

[Poppa]

I see. Thanks

[Anonymous]

Hello Everyone, 

I just read through all pages of this thread. 

I'm in the process of getting a mortgage - already have a signed purchase agreement on new construction with closing set for August 31. 

My scores from the lender are 523/547/563. Lender says I need a 580 for guaranteed approval through automated underwriting on FHA mortgage. Husbands scores are clean in the low 700's and has NO debt. I have to go on the loan as my income will lower the DTI. 

Current scores on MyFico 3B reports pulled on March 13: 548EQ/558/TU/568EX. My mortgage scores are reporting at 541EQ/609TU/555/EX

I have the following collections on my report: 

Comenity(TU/EX/EQ) - $751 Charge-off from Jan 2017 - settled for $469; account now reporting as paid and closed

BB&T(TU/EX/EQ) - $1,411 Charge off from 2011 - called and can settle for $705

Fair Collections & Outsourcing(EX/TU/EQ) - $1,668 Collection from 2011 - settled for $166.80; account now reporting with $0 and open

National Credit Systems(EX) - $4,161 collection from 2011; reporting on Experian only and can get early exclusion on May 29, 2017

DeVry(EX) - $1,300 Defaulted loan - applied for consolidation and amount will absolve into this and be deleted from Experian

Berks Credit (EX) - $545/$683/$724 - reporting on Experian only and can get early exclusion on July 29, 2017

Good Accounts:

Capital One - $500 secured platinum card since Apr 2016 - reporting balance of no more than $30 and this month will report at $0 balance

NFCU - $1,000 secured Visa since March 2017 - has not reported on credit report yet

Capital One - Authorized User on husbands account - he's had the card since June 2013 with $2,500 limit and current 18% utilization - not reporting on credit report yet

Westlake Financial - auto loan - reported as paid and closed since December 2016 - paid through vehicle trade-in

Would I benefit from doing this Alliant SSL?