Adding an installment loan -- the Share Secure technique

[Subexistence]

Update

EQ:722-->770!

TU:717-->754

EX719-->?

It's been a month and my EX hasn't changed yet. I keep checking creditscore.com and they are reporting that alliant still has $80 balance. For some frustrating reason EX isn't being updated.

[Enyx]

Hey All, been reading over this thread for a good two hours and I just want to be absolutely sure I understand the procedurals of this. Of course this is a very crude step-by-step but the 'general principal' is what I'm trying to confirm.

1. Create a Savings Account at Alliant (or any bank of your preference)
2. Deposit $500 (plus any fees/donations/etc)
3. Request a Savings Secured Loan of $500 for longest term possible (unless you intend to request other secured loans before then)
4. Talk with Loan Officer, try an get your payment date to within 7 to 10 days of when the loan was approved (if approved on 2nd try n get payment due on 9th-11th)
5. Use the LOANED $500 to then pay directly towards the Loan itself $420
6. Verify your due date, and amount are pushed way in to the future (based on your loan approaval date, etc)
7. Wait for first autopay, then delete autopay
8. Pay the balance down to $44 (at or under 9% of initial loan)
9. Keep it active by paying $2 towards it every 3-6mo manually or auto from a checking out
10. Right near end of loan term PIF whatever little is left
11. You should by then have the $500 total unfrozen again in your checking, putting you at Step 2
12. Repeat Steps 3-11

I'd like to clarify specifically: Do I use the Loaned $500 to pay the $420 towards the Loan itself? or Will I actually need outside $420, making it $920 to make this happen the way it needs to?

I know I sound haphazard but in bare basic form is this/my thinking correct on how to approach this?.

Thank You!

[credit_endurance]

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@Subexistence wrote:

Update

EQ:722-->770!

TU:717-->754

EX719-->?

It's been a month and my EX hasn't changed yet. I keep checking creditscore.com and they are reporting that alliant still has $80 balance. For some frustrating reason EX isn't being updated.

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That's awesome bump subexistence! Is this your only installment loan reporting?

[Anonymous]

Enyx -- The savings account needs to be at Alliant or some other bank or credit union that offers secured loans. The loan must be from the same bank as the savings account, as that money is used to secure the loan.

Beyond that, just re-read and follow the steps on page 1 of this thread. No need to read the whole thread or otherwise reinvent the wheel. Page 1 is still current.

[Anonymous]

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@Subexistence wrote:

Update

EQ:722-->770!

TU:717-->754

EX719-->?

It's been a month and my EX hasn't changed yet. I keep checking creditscore.com and they are reporting that alliant still has $80 balance. For some frustrating reason EX isn't being updated.

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So yours reported to EX back in June but didn't update in July? Mine was opened in late June and was supposed to report to EX this month but it never appeared. (It did appear on EQ and TU.) Looks like Alliant's old problem with EX might have reared its ugly head again.

I would suggest sending a private message to Alliant to make sure they know there's an issue. They were supposed to be looking into it, but I haven't heard back in about a week.

[Anonymous]

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@Subexistence wrote:

Update

EQ:722-->770!

TU:717-->754

EX719-->?

It's been a month and my EX hasn't changed yet. I keep checking creditscore.com and they are reporting that alliant still has $80 balance. For some frustrating reason EX isn't being updated.

---

My understanding is that creditscore.com pulls your EX data once per month.  If I am right, then it is unsurprising that repeated checks of that service continue to show the same information.  You may want to find out when your EX data was pulled via that service.  (Again, that's not the same thing as the last time you logged on.)

That said, a minority of people have reported it taking an additional month for their Alliant SSL data to materialize inside EX (when the loan is still new, that is).  An additional month beyond when the data had materializeed inside EQ/TU.

[Enyx]

joe_miami -- Gotcha!

The wording from the first page is vague on if that's a smart thing to do "Next pay off a good chunk of the loan.  Personally, I would start with something really simple.  Like pay off $420 of the loan amount ($500)."

Is it safe/fine to pay that $420 using the Loaned $500 itself? (pay to the loan acct from the savings acct that now has the $500 deposited into it)?

Thank you!

[Anonymous]

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@Enyx wrote:

joe_miami -- Gotcha!

The wording from the first page is vague on if that's a smart thing to do "Next pay off a good chunk of the loan.  Personally, I would start with something really simple.  Like pay off $420 of the loan amount ($500)."

Is it safe/fine to pay that $420 using the Loaned $500 itself? (pay to the loan acct from the savings acct that now has the $500 deposited into it)?

Thank you!

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Hi Enyx.  Here are the five big steps as given in the Guidance:

Implementing the SS Loan Technique:

     Step By Step

Read all of these instructions and make sure they make sense before you start implementing any of them.  You should try out the links to Alliant as well and play around on their site.  The steps are:

(1)  Open a savings account with Alliant
(2)  Apply for the loan online
(3)  Finalize the loan with a loan officer
(4)  Pay it down
(5)  Wait for it to report to the three CRAs

Step 1 ends with you having $510 in an Alliant savings account.

Step 3 ends with Alliant depositing the $500 from the loan into your savings account.  It reads:

An hour later 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."

Step 4 explains that you will then pay down the loan using the money in the savings account.  (Remember you have over $1000 in it now.)

Next pay off a good chunk of the loan.  Personally, I would start with something really simple.  Like pay off $420 of the loan amount ($500)....  The way to make a payment (whether big or small) is to go to the TRANSFER MONEY tab.  Just set up a one time transfer of $420 from your savings to the loan.

So yes, as per the Guidance, you are using the money you've just been given as a loan as the funding to pay down your loan.

[Enyx]

Thank you very much for the clarification I read over that part quite a bit and I guess it didn't click per-se, that it/that was the proper way to do so!

[Asilomar]

CreditGuyInDixie,

Perhaps some of the confusion occures when you say "...Thus your account will have a little over $1000 in it, of which $500 is inaccessible".  

Strictly speaking that's not quite true.  The summary page shows both accounts separately.  The savings account with the original 510/520 and the loan account with 500.  So if someone is looking for a 1000 dollar total from a single account they might get confused.

Maybe the wording would be clearer to some folks if it said something like "now your two accounts will total a little over 1000, only 500 of which, from the original savings account, will be accessible."