@CreditMagic7 wrote:
@jamie123 wrote:
In my instance, i suppose if i open the share secured loan with a CU like Alliant around the first of 2016 then at the close of the final month when my current auto loan term is completed (and thereby shows closed/PIF) it should help prop up the FICO numbers or at the very least drop very little?
Yes, it will keep your score from dropping.
We have found that it is best to get the share secured installment loan with Alliant and then pay down the balance to less than 10% remaining. This will push the next payment due date out years. (Don't set up autopayments.) You get a bump in points once your installment loan is more than 90% paid off. These are some of the points you lose once you pay off and close the loan.
Ok, joined Alliant online over the weekend and just waiting for the intro welcome package to arrive in the mail. No offers except for checking which i declined for the time being to hopefully save from a HP on EQ. No offers for credit card or other which i fully expected since my EQ score is bitten right now after a Sept spree.
If i read this right you want to fill that same savings account with a deposit of 550 or better and then apply for the secured share in a couple of weeks or so.
Once this all gets hooked up and posted to my CR's and then paid down 90% the timing should be good i would think to do my auto loan payoff since i already will have an existing unsecured bank loan reporting.
No need to wait, can apply as soon as the funds to secure it clear; I actually applied before that but it was held up for a couple of days.
Your plan is solid, may be a minor hiccup with the new account bringing down AAOA but you won't get the wild swing on installment utilization.
@CreditMagic7 wrote:
@Revelate wrote:
@CreditMagic7 wrote:
@jamie123 wrote:
In my instance, i suppose if i open the share secured loan with a CU like Alliant around the first of 2016 then at the close of the final month when my current auto loan term is completed (and thereby shows closed/PIF) it should help prop up the FICO numbers or at the very least drop very little?
Yes, it will keep your score from dropping.
We have found that it is best to get the share secured installment loan with Alliant and then pay down the balance to less than 10% remaining. This will push the next payment due date out years. (Don't set up autopayments.) You get a bump in points once your installment loan is more than 90% paid off. These are some of the points you lose once you pay off and close the loan.
Ok, joined Alliant online over the weekend and just waiting for the intro welcome package to arrive in the mail. No offers except for checking which i declined for the time being to hopefully save from a HP on EQ. No offers for credit card or other which i fully expected since my EQ score is bitten right now after a Sept spree.
If i read this right you want to fill that same savings account with a deposit of 550 or better and then apply for the secured share in a couple of weeks or so.
Once this all gets hooked up and posted to my CR's and then paid down 90% the timing should be good i would think to do my auto loan payoff since i already will have an existing unsecured bank loan reporting.
No need to wait, can apply as soon as the funds to secure it clear; I actually applied before that but it was held up for a couple of days.
Your plan is solid, may be a minor hiccup with the new account bringing down AAOA but you won't get the wild swing on installment utilization.
Thanks for the nod on that Rev and especially you and jamie sharing your collective wisdom with all of us here.
These might seem such small matters to some but they are still important matters that can have affects, and some of those affects can loom pretty large and at the worse possible times, like the shock from a huge score drop over an installment term completion. Ouch.
This hopefully will be of help if the SP to EQ holds true. Checked and the one for membership has already showed up on the credit report.
Would you guys wait until it reports to the CRA first and then do the big manual payment?
Reports are that it's not strictly necessary, but I would just to be sure. Sometimes new tradelines get reported in some squirrely state, and I'd want to absolutely make sure that the original balance was reflected correctly before I made the lump sum payment.
Credit's a long term project, waiting a month or two to get fully pretty on an installment loan isn't much of a stretch and it's worth it to be certain is my thinking.
@Anonymous wrote:It's not possible with all lenders - each has their own rules on recasting loans. Some the minimum balance to recast is $3k or $5k, some don't recast at all, some require a lumpsum payment of at least 10% of remaining balance.....you just have to call around and ask the questions.
My car loan is with a local credit union - they tend to have the most lax rules when it comes to recasting. Mine just requires a minimum remaining balance of $1k and lump sum payment of at least $1k to recast. So say my balance was $1980, I wouldn't be able to recast the loan, because the balance would be too low to meat their 2 requirements.
That is interesting; how does it report with the bureaus post-recasting?
Refinance would be a new tradeilne typically with most lenders, from your description this is different but the devil is in the details on the report.
I'm not sure what this gets other than for the lenders who refuse to extend more than a X number of payments ahead, though I suppose it is easier to have $15/month on autopayment or whatever rather than reminding oneself through phone alerts every six months or whatever to pay a buck or two as many lenders push the payment date way out into the future from reports here anyway.
Edit: yeah might make an impact on some mortgage apps these days as some lenders certainly aren't excluding installment loans with minimal payments left if you wanted to keep the original tradeline rather than just sorting with a small secured loan.
Appreciate the insight!