Adding an installment loan -- the Share Secure technique

[newhis]

---

@Anonymous wrote:

I have a question regarding the effect of this process. I currently have an open installment loan (car loan) with a small local credit union. I found out that they're only reporting to EX and TU, but not to EQ. I have closed installment loans on my EQ report, but nothing open. Will I see the typical 30ish+ point increase in my EQ score if I do this? Will the EX and TU scores be moderate to light increases?

---

If you don't have an open loan with EQ then it will help with that score. I don't think it will help for EX/TU now, it will help when you finish your auto loan (if that is less than the SSL).

Remember, a new account will be on your reports that will lower your AAoA. If that take your AAoA down from X years to Y years you may see a drop in your scores.

[Anonymous]

---

@newhis wrote:

---

@Anonymous wrote:

I have a question regarding the effect of this process. I currently have an open installment loan (car loan) with a small local credit union. I found out that they're only reporting to EX and TU, but not to EQ. I have closed installment loans on my EQ report, but nothing open. Will I see the typical 30ish+ point increase in my EQ score if I do this? Will the EX and TU scores be moderate to light increases?

---

If you don't have an open loan with EQ then it will help with that score. I don't think it will help for EX/TU now, it will help when you finish your auto loan (if that is less than the SSL).

Remember, a new account will be on your reports that will lower your AAoA. If that take your AAoA down from X years to Y years you may see a drop in your scores.

---

Yeah, unfortunetely I am just going to have to take the hit. I'll be adding 2 new cards to my account within the next week. I want to do everything at the same time so all of the accounts can age together.

[Anonymous]

I went through step one, got a message that said my information doesn't match the records and I'll be contacted within 2 days. Is this information here still relevant? It also had me donate before I set up the information for an account just so you know.

[Anonymous]

No hello or member ID or password, just a message to wait for 2 days and if I don't hear from them to call.

[blacklucy]

Okay, I've just gone through the process over the past week.  I'm at the point where I've paid off a chunk of the loan ($420) and am waiting for the auto pay to go through on Mar 28 so that I can delete the autopay and pay off more of the loan.  The steps and timeline have gone generally as expected.  As far as the email/phone call from the loan officer:  when I was completing the loan application, there was a place to note my "preferred method of communication" and I chose "email" (hoping I wouldn't have to deal with the phone call).  I did indeed receive an email from the loan officer later that day; however, he basically used the email as a way to set-up a time for his phone call to me.  We set-up a time for the next day and he called me exactly at that time and we spoke for 1-2 minutes, I was sent the documents via Docu-sign and the loan was funded a couple of hours later.  Also, I too was asked for my spouse's information (on the application, not the phone call) and it said it was because I'm in a community property state, basically a legal issue. I only had to give his name and birthdate and his information didn't show up on any of the documents or anything, so I don't really feel concerned about it but noticed someone else had asked about it.  Since there doesn't seem to be a hard-pull, I'm not sure it really matters or that they would even do a check at all on his, it really just seemed like a legality that would concern those in the community-property states.  Also, I ran both of our 3B reports a week prior to the SSL experiement (husband and I are each doing an experiment - the SSL for me and for a new credit card for him).  I will report back changes to my scores, especially the FICO 9 and don't expect any big changes other than the SSL for mine. Thanks everyone for all the excellent information, especially the step-by-step, it's amazing!

[Anonymous]

Will it make a difference if I do this with more money? Like say 1,000 instead of 500? Or will it be the same result?

[Anonymous]

---

@Anonymous wrote:
Will it make a difference if I do this with more money? Like say 1,000 instead of 500? Or will it be the same result?

I believe it'd yield the same result. It would just give you a bigger balance to pay down more or less.

[noobody]

I can think of a extreme case.
A new 30K car loan which would show near 100% "utility"
Will open a 100k SSL with 90-99 K payoff help?

[Anonymous]

Yes it would.  There is almost certain to be an intermediate percent, between 9% and 100%, where you get some of the benefit you would get from the fully paid down level of debt.  In the example you gave, the person would then have a 30k/130k installment utilization, or 23% or so.

As a practical matter, however, it would be very difficult to find a lender willing to give you a 100k SS loan, without drawing a vast amount of attention to yourself, which is fundamentally what you are not trying to do.  Perhaps you might be able to fly under the radar by taking out a new 10k SS loan every month.

Ultimately you'd find it a lot of work for not very much return.  The better approach when buying a new car is to take out a loan for the full amount of the car, and then immediately pay down the auto loan with as much cash as you can reasonably spare.  That will give you a head start on getting some of the benefit from having partly paid off installment debt.  I am not sure folks here have definitely proved where that might be if one's installment debt consisted solely of an auto loan.  Maybe < 69%?

[Anonymous]

Thank you. New question, I applied for the savings account yesterday and when I got to the part where they would welcome me I got a message instead that said my security information was incorrect. I don't know what triggered that, but the message said to wait a couple days and if I hadn't heard from them to call. Isn't this strange? I haven't heard anyone here talk about this happening.