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Adding an installment loan -- the Share Secure technique

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Anonymous
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Re: Adding an installment loan -- the Share Secure technique


@FireMedic1 wrote:

Yes it is my only installment. No other loans. June sounds cool. Give it time to get it set up. I know I'll get a bump up once it reports below 9%. After pay-off. Who knows.

Edit: Sept. is payoff month


Just so I do not mislead you, you should expect no score increase from adding the SS loan.  That's because you will at that point already have a total installment utilization of < 8.99%.

 

What the SS loan at 8.9% will do is prevent a big score loss when the truck loan reports as closed (probably in Sept).

Message 971 of 1,921
FireMedic1
Community Leader
Mega Contributor

Re: Adding an installment loan -- the Share Secure technique


@Anonymous wrote:

@FireMedic1 wrote:

Yes it is my only installment. No other loans. June sounds cool. Give it time to get it set up. I know I'll get a bump up once it reports below 9%. After pay-off. Who knows.

Edit: Sept. is payoff month


Just so I do not mislead you, you should expect no score increase from adding the SS loan.  That's because you will at that point already have a total installment utilization of < 8.99%.

 

What the SS loan at 8.9% will do is prevent a big score loss when the truck loan reports as closed (probably in Sept).


Excellent. Thats why I was asking the best way. It will equal out in a way. AAoA is 6-9 yrs.Thanks!


Message 972 of 1,921
Anonymous
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Re: Adding an installment loan -- the Share Secure technique

I funded my savings account on Monday @ 5:15 PM EST and it shows under my current balance but is not yet available as of Saturday. 

Has anyone else experienced it taking this long to show as Available?

Message 973 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique


VapeDaddy wrote:

I funded my savings account on Monday @ 5:15 PM EST and it shows under my current balance but is not yet available as of Saturday. 

Has anyone else experienced it taking this long to show as Available?


It posted after 4 business days for me. I would expect yours to be available on Monday. It was quite a wait.

 

Message 974 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique

Just a quick shout out to all the people who contribute to this thread.  You guys are great and I am grateful.  A lot of you are a lot closer (in living memory) to the experience of getting your SS loan at Alliant.  So for example, I honestly could not remember what the answer might be to our friend's question about initial funding, and I was happy to see that more knowledgable folks had already answered it.

Message 975 of 1,921
Glen_M
Frequent Contributor

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union

There aren't a lot of Navy Federal Credit Union examples for shares secured loans, despite the popularity of NFCU in general, so I thought I'd put mine up.

 

Joined NFCU and opened a Shares Secured Loan recently, still waiting for the first statement, but the system is telling me my next payment won't be due until SEP 2021. No auto-payment to deal with deleting, the option was offered though.  I set up my loan in ~5 mins on the phone when I was setting up my general account.

  

Loan Terms:

  • Principal - $5,000
  • Length - 60MO
  • Interest Rate - 2.25% (lowest available, "Share Rate + 2%")
  • Remaining balance as of today - $440 (= 8.8% of original balance)(payment made manually, no autopayment was ever set up)

  

Scores before (April FICO8s via myFICO):

  • TU - 657
  • EX - 665
  • EQ - 638

 The only inquiry in the last year is 1 on TU when they processed the NFCU membership, it was pulled earlier the same day those scores were.

 

The minimum amount the loan could have been made for was $250, but I believe it was worth the opportunity cost to have the larger loan terms for future refrence when anyone is considering me for some other account/product, especially manual reviews.  Similarly when I paid the loan down, it was done in two parts, so the last payment made (which might be reported) was only for $20.

 

I've paid an annual fee on a secured card as an opportunity cost for credit repair, a little bit of interest on a higher balance loan will be worth it to me.  The computer algorithms calculating FICO scores might not care what the loan amount was for, but I have to believe that if a person is reviewing my account that a $5k loan will be more valuable/meaningful/less-suspicious than a little one.



Message 976 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union

This is so helpful!  Thanks.

 

The only thing I'd like to rule out is the possibility of a hard pull associated with the loan.  It sounds like you pulled all three reports and only saw one inquiry:

 

The only inquiry in the last year is 1 on TU when they processed the NFCU membership, it was pulled earlier the same day those scores were.

 

But it's unclear to me on what date the loan was approved and again what date the three reports were pulled.  If the two dates were very close to each other, it's conceivable (to me anyway) that the inquiry for the loan might not have showed up yet.

 

Is 60 months the maximum length of an SS loan at NFCU?

 

Your solution sounds like the right approach for anyone with an NFCU membership (or who was certain he wanted a membership anyway)..  For people without an existing relationship, the hard pull might be a deterrent.

 

Thanks again for this very thoughtful writeup!

 

 

Message 977 of 1,921
Glen_M
Frequent Contributor

Re: Adding an installment loan -- the Share Secure technique - NFCU - Navy Federal Credit Union


@Anonymous wrote:

This is so helpful!  Thanks.

 

The only thing I'd like to rule out is the possibility of a hard pull associated with the loan.  It sounds like you pulled all three reports and only saw one inquiry:

 

The only inquiry in the last year is 1 on TU when they processed the NFCU membership, it was pulled earlier the same day those scores were.

 

But it's unclear to me on what date the loan was approved and again what date the three reports were pulled.  If the two dates were very close to each other, it's conceivable (to me anyway) that the inquiry for the loan might not have showed up yet.

 

Is 60 months the maximum length of an SS loan at NFCU?...

 


The maximum available term is 15 years (180 MO ?), but as I intend to acquire an auto loan some time next year I didn't want to try to carry the secured loan too long beyond the start of that one -- expecting that the balance of the auto loan would wash out the usefullness of the secured loan for several years I didn't want to bother with maintaining it.  The loans over 60MO do use a differnt interest rate, "Share Rate + 3%".   If I don't initiate a home loan before the end of the auto loan, I might consider opening another SSL to cover that gap.

 

The membership HP from TU was earlier in the same day that I acquired the myFICO scores, but the share secured loan (or Shares Pledged Loan as I see it called in the accounts page, even though some of their info pages call it a Shares Secured) was initiated a few days later.  I'm actually waiting on a simple TU score update from BofA to give me an indication of whether or not a second pull was made, but I believe I read somewhere that the secured loan may not require one despite NFCU being generally pull-happy for new accounts.  

 

I'll also have another Prem. myFICO report before the first statement date -- the dates lined up well for the purposes of monitoring the score impact, but poorly for my patience in wanting to make a few new card apps with that FICO score boost.  I've been working my crdit repair for a couple years now though, I'll survive another month or two without tangible evidence.



Message 978 of 1,921
Anonymous
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Re: Adding an installment loan -- the Share Secure technique

Signed my $500 online loan docs 4/11 and docs say first payment of $9.24 due on 5/26, does this length of time between signing and first payment sound normal?  

I made a transfer of $420 already and guess I need to wait till after 5/26 to log in and cancel auto payments. 

Message 979 of 1,921
Anonymous
Not applicable

Re: Adding an installment loan -- the Share Secure technique


@Anonymous wrote:

Signed my $500 online loan docs 4/11 and docs say first payment of $9.24 due on 5/26, does this length of time between signing and first payment sound normal?  

I made a transfer of $420 already and guess I need to wait till after 5/26 to log in and cancel auto payments. 


 

The signing of online documents typically happens after the LO has a 1-on-1 telephone conversation with you.  Did that conversation happen?

Message 980 of 1,921
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