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Current Personal Loan Vs SSL

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credit_endurance
Valued Contributor

Current Personal Loan Vs SSL

Decided to apply for the Alliant SSL after much debate. Was pleasantly surprised in how simple the process was although having a relationship with them probably helped. So this is my plan, since this loan is already in play having to set up auto pay with LO starting the middle of next month. He did assure me that the loan wouldn't report until end of August at the earliest. I was going to pay my current loan down to the 8.9% mark ( $3056/5000 currently) and see what my results would be.But now with this loan approval I think I will just pay off my current loan so it will report PIF closed next month by then the SSL should report simultaneously. My hope then is to maximize any/all gains while implementing the SSL technique.  Please share your thoughts.

 

 

 

Starting FICO08 Scores 2016 All in the mid 500’s
Current FICO08 Scores SEP 2023 (TU 834) (EQ 831 (EXP 831)

“The credit is no longer bruised, it has endured the test of time” (formally know as bruisedcredit)

Message 1 of 22
21 REPLIES 21
SouthJamaica
Mega Contributor

Re: Current Personal Loan Vs SSL


@credit_endurance wrote:

Decided to apply for the Alliant SSL after much debate. Was pleasantly surprised in how simple the process was although having a relationship with them probably helped. So this is my plan, since this loan is already in play having to set up auto pay with LO starting the middle of next month. He did assure me that the loan wouldn't report until end of August at the earliest. I was going to pay my current loan down to the 8.9% mark ( $3056/5000 currently) and see what my results would be.But now with this loan approval I think I will just pay off my current loan so it will report PIF closed next month by then the SSL should report simultaneously. My hope then is to maximize any/all gains while implementing the SSL technique.  Please share your thoughts.

 

 

 


If you pay the old one off before the SSL hits, be prepared for a temporary score drop in FICO 8. If you pay the old one down to 5% or so and keep that until the SSL hits the reports, then you don't have to worry about that.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 2 of 22
credit_endurance
Valued Contributor

Re: Current Personal Loan Vs SSL

Thanks for this tip SouthJamaica I will certainly keep this in mind. This would cover me just in case the Loan Officer estimate is off as far as the SSL reporting. From your experience how long did it take your SSL to report to the credit bureau's?

Starting FICO08 Scores 2016 All in the mid 500’s
Current FICO08 Scores SEP 2023 (TU 834) (EQ 831 (EXP 831)

“The credit is no longer bruised, it has endured the test of time” (formally know as bruisedcredit)

Message 3 of 22
Gmood1
Super Contributor

Re: Current Personal Loan Vs SSL

It will report at the end of this month. Better to just go ahead and pay it down IMO.
Message 4 of 22
SouthJamaica
Mega Contributor

Re: Current Personal Loan Vs SSL


@credit_endurance wrote:

Thanks for this tip SouthJamaica I will certainly keep this in mind. This would cover me just in case the Loan Officer estimate is off as far as the SSL reporting. From your experience how long did it take your SSL to report to the credit bureau's?


The balance they report is always the end of month balance, and usually it's reached all 3 MyFICO reports around the 6th of the month.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 5 of 22
Anonymous
Not applicable

Re: Current Personal Loan Vs SSL


@credit_endurance wrote:

Decided to apply for the Alliant SSL after much debate. Was pleasantly surprised in how simple the process was although having a relationship with them probably helped. So this is my plan, since this loan is already in play having to set up auto pay with LO starting the middle of next month. He did assure me that the loan wouldn't report until end of August at the earliest. I was going to pay my current loan down to the 8.9% mark ( $3056/5000 currently) and see what my results would be.But now with this loan approval I think I will just pay off my current loan so it will report PIF closed next month by then the SSL should report simultaneously. My hope then is to maximize any/all gains while implementing the SSL technique.  Please share your thoughts.

 

 

 


 

Great feedback and advice from the other folks.  Among other things, they are right that the loan will report at the end of July -- and thus your LO, confident as he was, was nonetheless wrong.  Bank reps, loan officers, etc. are often wrong when it comes to credit reports.  Worth bearing in mind.

 

I like SJ's advice of paying the current personal loan down to $50 or so now, and then completely pay it off after the Alliant loan is reporting on all three reports with its own small balance.

Message 6 of 22
Anonymous
Not applicable

Re: Current Personal Loan Vs SSL

Hey bruised, not sure if you'd be up for it, but any chance you'd want to test a data point or two before you pay down your SSL to below 9%?  I'd be curious to see your score the first month if you paid it down to say 10%-11%, then took it down across the 8.9% mark the following month.  I want to know the point gain in going across that final threshold, as it's been discussed a lot on here lately.  No big deal if you don't want to do this, but it would be very cool.

Message 7 of 22
credit_endurance
Valued Contributor

Re: Current Personal Loan Vs SSL

Thanks to everyone who contributed suggestions and vauable insight. @BBS sure I wouldn't mind experimenting a bit with the threshold process. I'm going to pay it down to around $420 as CGID suggested in his thread as well as pay down my current loan to around $50 balance and see what the results are. I must wait until the current loan reflects as PIF anyways. it's going to interesting to see what happens. I should have some kind of update around the first of the month.

Starting FICO08 Scores 2016 All in the mid 500’s
Current FICO08 Scores SEP 2023 (TU 834) (EQ 831 (EXP 831)

“The credit is no longer bruised, it has endured the test of time” (formally know as bruisedcredit)

Message 8 of 22
Anonymous
Not applicable

Re: Current Personal Loan Vs SSL

Awesome, great to hear!  I'm definitely looking forward to any data points that you may come up with.

Message 9 of 22
credit_endurance
Valued Contributor

Re: Current Personal Loan Vs SSL

One other question BBS...Has there been much data on the impact of already having an installment loan reporting lets say "mid range" 50% and then implementing & allowing the SSL loan to first report at 11% or so? Then drooping it down to 8.9%?

Starting FICO08 Scores 2016 All in the mid 500’s
Current FICO08 Scores SEP 2023 (TU 834) (EQ 831 (EXP 831)

“The credit is no longer bruised, it has endured the test of time” (formally know as bruisedcredit)

Message 10 of 22
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