Alliant CU Installment Loan Hack CliffsNotes®

[Konrad2012]

Nothing against Foster Care for Success, but I see membership in Freelancer's Union or Network Professional Association (this one might be iffy -- they have different tiers) are both free and allow you to join Alliant. Any reason not to go this route?

 

Nope. If you're a member of one of those organizations you're eligible, as you are if you work for one of their partners, live in certain communities etc.

 

The Foster Child charity is just an easy slam dunk for most people.

 

Some of these CU's probably don't even vet applicants properly (not saying this is true of Alliant).

[DigDeep]

 

One subtlety that would be helpful to be documented in this thread is whether Alliant reports this line as secured or unsecured. Some folks may not want the potential stigma of a secured line for 3-4 years on their report.

Doesn't matter. If you need the points, it's good. If you're a FICO geek, your file is probably good enough for it not to matter.

 

A mortgage is a secured loan, as is an auto loan, just for perspective.

 

Don't get me wrong, this is an awesome score enhancement suitable for many people. While I agree that it does not matter for many folks, it will matter for others. Everyone has different goals and needs. Myself, for example, would have an issue with having a secured line reporting for the next 4 years. Large banks and other financial institutions will conduct manual reviews of my credit. A secured tradeline would be viewed negatively.

 

Comparing an auto loan and a mortgage to a secured by cash installment loan is faulty, illiquid vs 100% liquid. The mortgage and auto loan are not 100% secured with immediately liquid cash, they are illiquid pledged assets.

Edited September 25, 2016 by DigDeep

[C316]

 

 

One subtlety that would be helpful to be documented in this thread is whether Alliant reports this line as secured or unsecured. Some folks may not want the potential stigma of a secured line for 3-4 years on their report.

Doesn't matter. If you need the points, it's good. If you're a FICO geek, your file is probably good enough for it not to matter.

 

A mortgage is a secured loan, as is an auto loan, just for perspective.

 

Don't get me wrong, this is an awesome score enhancement suitable for many people. While I agree that it does not matter for many folks, it will matter for others. Everyone has different goals and needs. Myself, for example, would have an issue with having a secured line reporting for the next 4 years. Large banks and other financial institutions will conduct manual reviews of my credit. A secured tradeline would be viewed negatively.

 

Comparing an auto loan and a mortgage to a secured by cash installment loan is faulty, illiquid vs 100% liquid. The mortgage and auto loan are not 100% secured with immediately liquid cash, they are illiquid pledged assets.

 

Do you have any proof that a secured tradeline is viewed negatively? If you do, please list them so that we can all be informed.

 

Amex, Chase. Citi. BofA. Crap 1, nor any of my other creditors have had issue with it. My last few approvals, after reviews, have been for $30K+. Do you think I might have got $50K+ if I didn't have the secured loan showing?

[Konrad2012]

 

 

One subtlety that would be helpful to be documented in this thread is whether Alliant reports this line as secured or unsecured. Some folks may not want the potential stigma of a secured line for 3-4 years on their report.

 

Doesn't matter. If you need the points, it's good. If you're a FICO geek, your file is probably good enough for it not to matter.

A mortgage is a secured loan, as is an auto loan, just for perspective.

Don't get me wrong, this is an awesome score enhancement suitable for many people. While I agree that it does not matter for many folks, it will matter for others. Everyone has different goals and needs. Myself, for example, would have an issue with having a secured line reporting for the next 4 years. Large banks and other financial institutions will conduct manual reviews of my credit. A secured tradeline would be viewed negatively.

So AMEX, BofA, Barclays, Chase, Citi, Discover, FNBO, NFCU, PenFed are going to start looking at my profile in a negative light because of $80 left on a secured loan? They're going to disregard my $500K of limits with virtually no utilization? They're going to disregard my paid off mortgages, paid off Mercedes and BMW accounts? Disregard my income? Disregard my high AAOA?

[Sinecio]

 

Nothing against Foster Care for Success, but I see membership in Freelancer's Union or Network Professional Association (this one might be iffy -- they have different tiers) are both free and allow you to join Alliant. Any reason not to go this route?

 

Nope. If you're a member of one of those organizations you're eligible, as you are if you work for one of their partners, live in certain communities etc.

 

The Foster Child charity is just an easy slam dunk for most people.

 

Some of these CU's probably don't even vet applicants properly (not saying this is true of Alliant).

Joining Freelancer's Union worked and was very painless. Although no proof was asked for during the Alliant sign up process, I will rest easier knowing I can show that I joined before requesting Alliant membership.

Alliant membership instant approved, adding installment loan should help push me over the FICO 800 mark for the first time.

[Tyra]

I'm not in your senario, but I am another one who is now curious as to why those manual underwriters will see a $500 secured loan as a negative. I have such a loan, and my assumption was that any manual underwriters would likely see it as insignificant due to it being for a trivial amount of money which is then 90% paid down the first month. If asked about it, I would explain how such a loan can help maximize FICO scoring (Don't hate the player, hate the game. LOL). But if such a loan will be interpreted negatively by the type of manual reviewers you will be dealing with, what is the inference they are making based on the loan appearing as secured vs. unsecured? What is the big bad? I am not trying to give you a hard time, I am seeking to get a better understanding of the thought process. Thanks.

[SteelerChick79]

I am curious as well. How will one know if the secured loan will be looked at negatively or not?

 

Should another topic be started where others can shared their experience with this?

 

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[MarvBear]

I see secured loans all the time made to consumers that usually range from 3 to 5k. Generally speaking credit unions are the primary source of these loans. . If the loans are well paid there is no way I would perceive them in a negative manner, regardless of the depth and breadth of the consumer file.

 

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[DigDeep]

I see secured loans all the time made to consumers that usually range from 3 to 5k. Generally speaking credit unions are the primary source of these loans. . If the loans are well paid there is no way I would perceive them in a negative manner, regardless of the depth and breadth of the consumer file.

 

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Marv, are you reviewing for the issuance of credit?

[MarvBear]

Well that's kinda what I do for a living.

 

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[socalrob]

I got a 22k car loan in nov 15, balance is now down to 7k. If I get it down to 2k that will boost my Fico?

 

 

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[FixnCred]

I got a 22k car loan in nov 15, balance is now down to 7k. If I get it down to 2k that will boost my Fico?

 

 

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Anytime you drop your overall installment amount owed vs. original amount you work towards a FICO improvement. With that big of a jump I would venture to say yes that would help.

 

However, if you have revolving debt you're better served FICO wise paying those down with that $5K. Especially if you have any any cards over 30% UTL.

[LKH]

 

I think the problem people are having is twofold.

 

1. You state "I will again state that for my scenario, absolutely without fail, the secured line would be viewed as a negative." With no empirical evidence that actually proves it. You've not actually tried this, and nor have you actually received any negative feedback on it. You're just guessing. However here on this board we don't really adhere to guessing games, we only go with what actually has been proven to work. It's why we share our successess and failures, it's why the credit pull database is so useful. You can't just say- this will be negative because I THINK someone will not like it. Where's your proof? What verification have you done to come to that conclusion. And because these things are so complex, you have to put things in context. For instance even on the credit pull database, there's not enough information. Yes it's helpful to know that you can get a Chase Freedom with a 620 score, but what is in that score, what's the income, what are the baddies, what other credit lines have you had, and for how long?

 

2. You want us to respect that you're trying to provide helpful information, even though your "case" isn't credit related. Honestly how is that helpful in the context of this board which IS CREDIT BASED? Even if your case is right, and it would be a negative, your case affects maybe what a 10th of 1% of this board?

"even though your "case" isn't credit related. Honestly how is that helpful in the context of this board which IS CREDIT BASED?"

 

I never said that. I said that my consumer credit is being reviewed for something other than the issuance of credit. Clearly my review is credit based as the determination of the review is based on the review of my consumer credit.

 

 

"Even if your case is right, and it would be a negative, your case affects maybe what a 10th of 1% of this board?"

 

Please see my analogy above of rental property credit review as another example of consumer credit review for other than the issuance of credit. Clearly there is a very large percentage renters in the USA. Homeownership rate is down to approximately 60% now, I believe.

 

 

"You've not actually tried this, and nor have you actually received any negative feedback on it. You're just guessing."

 

Absolutely false. I am giving you the benefit of the doubt that you did not read my statement that I have 28 year industry specific experience and knowledge.

 

 

"However here on this board we don't really adhere to guessing games, we only go with what actually has been proven to work. It's why we share our successess and failures, it's why the credit pull database is so useful. You can't just say- this will be negative because I THINK someone will not like it. Where's your proof? What verification have you done to come to that conclusion."

 

You do realize that you directly contradicted yourself, right? What exactly is the credit pull database? It is solely the input of board members with NO other proof than their word. I am going to list that I got approved for the Chase Sapphire reserve with a 1 year BK and 493 FICO scores. Get it while the getting is good!

 

 

"It's why we share our successess and failures"

 

And that is EXACTLY what I have tried to do but people with NO industry specific veteran knowledge are telling me that I can't share, it is not true, etc.. When people share on this board of a credit deletion, etc.., exactly how many times are they told we don't believe you until you provide proof??? How many times have YOU been required to provide proof for any of your statements?

 

All input in the Credit Pulls is reviewed before approval.Should someone try to get something like that into the database, it would never stand a chance.

Besides, most members here have class and would never think of trying to pull some BS like that.

[Tyra]

Has anyone verified IF the Alliant loan even reports as secured?

It does.

Loan Type: SECURED

[breeze]

I tried to clean up this topic, so you can carry on.

 

If anyone sees a post that should be hidden, send me a link via PM. I felt some were borderline, but had good info in them.

 

ETA: the posts are still there, but they are hidden. If you feel something should be unhidden, you can let me know about that also.

[thisisdrivingmecrazy]

forgive me if this seems like a dumb question, but the initial 500-1000 deposit acts as a secured cover for the loan you then go on to apply for? i am considering undertaking this method, but want to be sure i completely understand what's happening. thank you.

[Tyra]

forgive me if this seems like a dumb question, but the initial 500-1000 deposit acts as a secured cover for the loan you then go on to apply for? i am considering undertaking this method, but want to be sure i completely understand what's happening. thank you.

Yes. You give them $500 deposit. They give you $500 loan. You give them $460 loan payment, and they release $460 of the security deposit back to you. The remaining $40 security deposit will be released as you pay down the remaining $40 balance.

[Konrad2012]

 

forgive me if this seems like a dumb question, but the initial 500-1000 deposit acts as a secured cover for the loan you then go on to apply for? i am considering undertaking this method, but want to be sure i completely understand what's happening. thank you.

Yes. You give them $500 deposit. They give you $500 loan. You give them $460 loan payment, and they release $460 of the security deposit back to you. The remaining $40 security deposit will be released as you pay down the remaining $40 balance.

 

 

^^^ This. The vast majority of your funds are only tied up for a short time...several days.

[thisisdrivingmecrazy]

...seems like a no brainer. will give it a shot tomorrow. also started the NFCU process per your thread, konrad. will update.

[djgrolyos]

Do you know about Chex? Do they use it or care for a Savings?

[Tyra]

Do you know about Chex? Do they use it or care for a Savings?

I believe they pull ChexSystems for membership. You might want to contact them and see what they tell you. In their disclosures on the website it mentions ChexSystems affects at least one of their accounts.

 

High Yield Savings Account

Members in good standing and without a ChexSystems record have a $500 daily withdrawal limit and a $10,000 daily deposit limit. Members with a ChexSystems record have a $200 daily withdrawal limit and $0 daily deposit limit. ChexSystems is a consumer reporting agency.

[djgrolyos]

 

Do you know about Chex? Do they use it or care for a Savings?

I believe they pull ChexSystems for membership. You might want to contact them and see what they tell you. In their disclosures on the website it mentions ChexSystems affects at least one of their accounts.

High Yield Savings Account

Members in good standing and without a ChexSystems record have a $500 daily withdrawal limit and a $10,000 daily deposit limit. Members with a ChexSystems record have a $200 daily withdrawal limit and $0 daily deposit limit. ChexSystems is a consumer reporting agency.

Ty

[Konrad2012]

I recieved an e-statement alert for last month, hopefully that means they reported this to the CRA's this round.

 

As has been previously reported, now that the first auto-transfer has gone through, I was able to go into the Account Management interface, and under Transfers eliminate all future transfers.

[pokerdave]

My $1020 transfer was credited on Monday morning, and applied for the Shared secured loan still have not heard from them. Maybe this thread is giving them a lot of work.

[C316]

I recieved an e-statement alert for last month, hopefully that means they reported this to the CRA's this round.

 

As has been previously reported, now that the first auto-transfer has gone through, I was able to go into the Account Management interface, and under Transfers eliminate all future transfers.

Kman, mine reported to EX this month today. Still not to EQ or TU. Usually it reports on the 3rd or 4th of the month to EX and the others the next day. Some months they are slow to report.

 

Just FYI.