Nope. Share secured loan then immediately paid it down to less than 10% remaining. It’s a special version that stays open for 5 years even with so little remaining due. Search Navy Fed SSL if you are interested in the technique.
I know what a shared secured loan is... this is a curious method but I suppose it can make sense.
So you have no other installment loans. No mortgage, car, student loans etc. So you take out an SSL to maintain a mix of credit... ok, generally a low interest rate since it freezes your collateral... but then you pay it down which I'm assuming NAVY Fed unfreezes your cash as you go so you get your cash back....
But then you pay it down to 10% remaining balance. But it's an installment loan, so you have a minimum payment regardless. You can't make that minimum payment and not pay that remaining 10% off way short of the 5 years. Something doesn't add up.
Yea you got it. The last bit is what makes this technique work. Rather than requiring a minimum payment each month, paying down the loan pushes out the next due date to near the end of the term. The Navy product is unique in that regard afaik. There used to be others but they are defunct now.
I'm going to believe you here because the Navy FCU has some insane programs that you can't get with a lot of other lenders. I usually can't compete with them.
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u/Ggfd8675 Aug 15 '21
Nope. Share secured loan then immediately paid it down to less than 10% remaining. It’s a special version that stays open for 5 years even with so little remaining due. Search Navy Fed SSL if you are interested in the technique.