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💫 Summary
This video discusses the benefits of getting a pledge loan with Navy Federal Credit Union for building credit, increasing internal scores, and improving credit mix, with a popular hack of paying off a large portion of the loan after 30-45 days to demonstrate creditworthiness to other lenders.
✨ Highlights📊 Transcript
Navy Federal offers a pledge loan, also known as a secured savings loan, which is fully secured by your savings and helps with building or rebuilding credit.
00:00
The loan amount is based on the amount you choose to put up as collateral.
It does not require a hard credit pull, only a soft pull on either Equifax or Experian.
Making monthly payments on the loan helps to build credit as it reports to the three major credit bureaus.
The Navy Federal Pledge Loan can help improve your credit mix and increase your credit score.
02:14
Credit mix consists of revolving credits (credit cards) and installment loans (personal loans, auto loans, mortgages).
35% of your credit score is based on payment history, 30% on credit utilization ratio, and 10% on credit mix.
Pledge loan contributes to payment history and credit mix, making up about 45% of your credit score.
Pledge loans from Navy Federal require a minimum deposit of $250 and charge a fee of 2-3% depending on the loan terms.
The Navy Federal Pledge Loan Hack involves paying off 80-90% of the loan amount after 30-45 days to improve creditworthiness.
04:29
The loan can only be applied for over the phone or in person at a branch.
Once approved, the funds are accessible within 24-48 hours.
The loan can be paid back weekly, bi-weekly, or monthly.
Some people choose to wait 30-45 days before paying off the majority of the loan to have a higher loan amount reflected on their credit report.
Gradually pay off the remaining 10 to 20% of the loan over time to show payment history and build a solid credit profile.
06:45
Payment history makes up 35% of your credit score.
Making payments on the loan for quite some time is important.
By following this hack, the loan will report to the credit bureaus and help improve your credit.
You can only have one pledge loan open at a time.
00:00getting a pledge loan with Navy Federal
00:01Credit Union is probably one of the best
00:03things you can do if you're trying to
00:04build a higher credit score if you're
00:05trying to build a higher credit profile
00:07and most importantly if you're trying to
00:08build High internal points with Navy
00:09Federal as well so you would essentially
00:11be killing three birds with one stone
00:12now there is a famous pledge loan hack
00:14that everybody's doing out here and it's
00:15working so if you want to know what this
00:17famous plush loan hack is that you might
00:18want to watch this video all the way to
00:20the end so that way you don't skip out
00:21on any valuable information that can
00:23help you well if you're already
00:24subscribed then welcome back but if you
00:25guys are new to my channel my name is
00:26Ish Sanford and you are now watching
00:28just money where we talk about financial
00:29related topics such as personal and
00:31business credit real estate and other
00:33Financial related topics so if that's
00:34something you're into then you're
00:35probably going to want to consider
00:36subscribing but without further Ado
00:38let's get into today's video okay so
00:40Navy Federal offers something called a
00:41pledge loan which other Banks and Credit
00:43Unions refer to as a secured savings
00:45loan okay now what exactly is a pledge
00:47loan AKA a secured savings loan a pledge
00:50loan is a loan that is fully secured by
00:51your savings so you're pretty much
00:52borrowing from that and converting that
00:54into an installment loan so whatever
00:56amount you choose to put up that will be
00:57the loan amount that you have to pay off
00:59and the good thing is it's not a hard
01:01pulling your credit it's going to be a
01:02soft pull on either your Equifax or
01:04experience depending on what state you
01:06live in but the point of this pledge
01:07loan is to help you guys out with three
01:09different things one it's perfect for
01:11those who are trying to build their
01:12credit or rebuild their credit and the
01:14reason for this being is whenever you
01:15get an installment loan and you're
01:16making monthly payments on it then it
01:18reports to the three major credit
01:19bureaus and these three major credit
01:21bureaus are named Equifax TransUnion and
01:23Experian two it also helps you build a
01:25high internal score with Navy Federal
01:27now I know what you're thinking what the
01:29heck is an internal score what is that
01:30an internal score is the bank's own
01:32crediting system that they use to
01:34determine where you fall in with them
01:35and Navy Federal has an internal scoring
01:37system that ranges anywhere from 100 all
01:39the way up to 450 and you typically want
01:41to be at least above 250 if you're
01:43applying for anything having an internal
01:45score with Navy Federal actually helps
01:47you get approved if you're trying to get
01:48a high limit credit card if you're
01:49trying to get like a low interest rate
01:50and it also helps if you're trying to
01:52get like auto loans personal loans
01:53mortgage loans and that kind of stuff
01:54keep in mind Navy Federal Credit Union
01:56is a relationship-based bank so the more
01:58products that you have with them then
01:59the more they're are inclined to do for
02:01you as a consumer and this pledge loan
02:03literally helps you build a better
02:04relationship with Navy Federal Credit
02:06Union so that's kind of another reason
02:07why you want this pledge alone and also
02:09if you guys can do me a favor hit the
02:10like button I would truly appreciate
02:11that because these videos do take me a
02:13long time to make so if you guys could
02:14hit the like button for me I would truly
02:15appreciate that but last but not least
02:17three this pledge loan will help you out
02:19with your credit mix now your credit mix
02:21consists of revolving credits such as
02:23your credit cards and then we have
02:24installment loans which are pretty much
02:25like personal loans auto loans mortgages
02:27that kind of stuff and those two right
02:29there are pretty much going to be the
02:30most famous two types of credit now
02:32there are a few others but these are the
02:33main two that most people are familiar
02:35with and these are the most two that are
02:36always being used maybe I'll go over the
02:38rest in a different video someday but
02:39anyways for those that don't know 35 of
02:41your credit score is going to be made up
02:43of your payment history and then 30 of
02:45your credit score is also going to be
02:46made up of your credit utilization ratio
02:48and then another 10 is going to be made
02:51up of your credit mix so that's 75 of
02:53your credit score just coming from
02:54making your payments on time having a
02:56low credit utilization ratio and having
02:58a variety of credit mix so this pledge
03:01loan will take care of about 45 of your
03:03credit score because you will be paying
03:05the loan back which equals your payment
03:06history and it's also going to get added
03:08to a credit mix as well and 45 is almost
03:10half of your credit score that's why
03:12when people get pledge loans their
03:14credit score jumps significantly and by
03:16the way keep no installment loans they
03:18do tend to carry a little bit more
03:19weight than a secured credit card could
03:21but you typically can get these secured
03:23savings loan from other credit unions
03:24not only just Navy Federal you do
03:26however at least must be 18 years of age
03:28in order to receive this loan and you
03:30must be the owner of this account or the
03:32joint owner of this account but the
03:34minimum deposit that you're going to
03:35need in order to obtain this pledge loan
03:37with Navy Federal is a 250 deposit
03:40minimum now obviously Navy Federal is
03:42going to charge you to do this because
03:43they're just not going to do it for free
03:44the good news is they only charge two to
03:46three percent depending on the loan
03:48terms that you choose okay so the terms
03:50are going to be 250 to 500 for a six
03:53month term then it's going to be 501 to
03:56a thousand dollars for a 12 month term
03:58then 2001 dollars is all the way up to
04:00three thousand dollars for a 36 month
04:02term and then anything above 3001 and
04:05Beyond will be a 60 month term and keep
04:08in mind this is all going to be at a two
04:09percent APR Navy Federal recently
04:11however allowed you to do 61 months all
04:13the way up to 180 months and if you
04:16choose to do that right there then it's
04:18going to be at a three percent APR which
04:20doesn't sound too bad it honestly sounds
04:21like a fair trade to me okay so to get
04:24started with this pledge loan you're
04:25going to want to have your pledge loan
04:26money in your savings account so that
04:28way Navy Federal Credit Union is able to
04:29pull it out and keep note you can only
04:31do this application over the phone or if
04:33you go inside the branch that is the
04:35only way you can get this loan but once
04:37approved anywhere between 24 to 48 hours
04:39you're gonna receive an email the
04:40document that needs to be signed in
04:42order for the loan to be processed once
04:44everything is approved you will then
04:45have access to those funds in either
04:46your savings or your checking account
04:48then you can choose to pay this loan
04:49back weekly bi-weekly or even monthly
04:52okay now let's move on to the juicy
04:53stuff like the pledge loan hack that
04:55literally everybody is always talking
04:56about so with this pledge loan hack what
04:58people are typically doing is they're
04:59are paying 80 to 90 percent of the loan
05:01amount off as soon as they receive their
05:03funds but what some people are doing on
05:05the other hand they're waiting 30 to 45
05:07days to pay that 80 to 90 percent off
05:09after he gets reported to the credit
05:11bureaus now what's the difference
05:12between paying 80 to 90 percent of the
05:14loan off immediately as soon as the
05:16funds are available versus waiting 30 to
05:1845 days to pay that 80 to 90 percent of
05:20the loan amount off well if you're
05:22getting a significant amount like a
05:23hundred thousand dollar pledge loan for
05:24example you might not want that entire
05:26100 000 on your credit because your
05:28credit's going to drop and maybe you
05:30need to apply for something in that same
05:31time frame but on the other hand some
05:33people want to wait 30 to 45 days so
05:35that way the entire hundred thousand can
05:36reflect on their credit report because
05:38maybe they want to invest in themselves
05:40and what I mean by that is sure your
05:41credit score is going to drop for a
05:42little bit but if you have enough
05:43patience once that 100K is reflected on
05:46your credit report and then you pay 80
05:47to 90 of the loan amount off other
05:49lenders will look at you like you can be
05:51trusted to be given a high loan amount
05:53because after you pay 80 to 90 of it off
05:55then it's going to show that you had an
05:56installment loan for that amount and
05:58that you took care of most of it which
06:00looks really good to other lenders so
06:02that now shows lenders when you apply
06:03for something that's a high amount you
06:05can take care of a large loan amount
06:06because you've done it before just that
06:08right there makes them inclined to give
06:09you a larger loan amount and also keep
06:11note guys whatever payment you make
06:12towards your pledge loan minus the
06:14interest you're going to get back and
06:15you're checking your savings account
06:17within two to three business days so if
06:19you're making your payment on a pledge
06:20loan like on a Thursday then you're
06:21probably gonna have to wait till either
06:22Monday or maybe even Tuesday to receive
06:24this so for example if you get a hundred
06:26thousand dollar pledge loan and you pay
06:27ninety percent of it off then you're
06:29going to get that ninety thousand
06:30dollars back minus the interest rate
06:32into your checking or savings account
06:33and by paying a big portion of the loan
06:35amount your next payment won't be until
06:37months year or even maybe a couple years
06:40from now then after that your minimum
06:41payments are going to be extremely low
06:43every month and you typically want to
06:45pay it off over the course of a few
06:46years so that way you can have that
06:47payment history on your credit because
06:49again 35 of your credit score is going
06:51to be made up of your payment history so
06:52you have to show that you've been making
06:54payments on it for quite some time
06:55already so just make sure to pay the
06:57rest of the 10 to 20 off gradually over
06:59time time but at least you took care of
07:01the majority of the loan amount so from
07:02here on out it's smooth sailing and
07:04always keep in mind you can always make
07:05payments on it whenever you want as well
07:07but by doing this hack it's definitely
07:09going to report to the credit bureaus
07:10and it's going to help you build a more
07:11solid credit profile and you should see
07:13a significant difference on your credit
07:14anywhere between 30 to 45 days and real
07:17quick ladies and gentlemen before I end
07:18this video you are allowed one pledge
07:20loan at a time so yes you may only have
07:22one pledge loan open at a time but
07:25that's pretty much it for today's video
07:26guys if you guys are thinking about
07:27getting a plus loan then let me know in
07:28the comments below what are your goals
07:30and plans that you have for this pledge
07:31loan like what do you want to do with it
07:33let me know and also let me know what
07:34loan amount you plan on starting with
07:35because I would like to know and Not
07:37only would I like to know I think all of
07:38us is a community would like to know so
07:40that way we can all help each other out
07:41but if you guys made it to the end of
07:43the video then I do truly appreciate you
07:45guys we're at 14
07:46123 subscribers we are moving on now we
07:49are moving on up and we are moving on up
07:52I do Post weekly videos If you guys
07:53haven't already don't forget to hit the
07:55like button and hit the notification
07:56Bell so that way you guys can get
07:58notified every time I
08:00post a new video so don't forget to do
08:02that but again we talk about personal
08:03and business credit real estate and
08:04other Financial related topics so if
08:06that's something you're into like
08:07getting high limits on your credit cards
08:08then you're probably going to want to
08:09consider subscribing we talk about how
08:11to start business credit we talk about
08:12how to build credit we talk about real
08:14estate we talk about mortgage loan
08:15products we talk about everything this
08:17is your One-Stop shop we talk about
08:18credit cards such as Amex Navy Federal
08:20discover Capital One you name it we're
08:23here and for those that don't know I'm
08:24also a real estate agent a realtor here
08:26in Southern California so if you're
08:28looking to buy or sell a home then all
08:30my information is in the description
08:31below I almost say licensed mortgage
08:33loan originator so if you're looking for
08:35funding for a home then that could
08:36definitely help you out with that as
08:37well all my information is in the
08:38description below and I will see you
08:40guys
08:41in the next video thanks for watching
08:43guys appreciate you guys
08:46[Music]
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FAQs about This YouTube Video

1. What are the benefits of getting a pledge loan with Navy Federal Credit Union?

Getting a pledge loan with Navy Federal Credit Union offers several benefits such as building credit, increasing internal scores, and improving credit mix.

2. How can a pledge loan with Navy Federal Credit Union help in building credit?

A pledge loan with Navy Federal Credit Union can help in building credit by demonstrating responsible borrowing behavior and timely payments, which positively impact credit scores.

3. What is the popular hack associated with paying off the pledge loan after 30-45 days?

The popular hack is to pay off a large portion of the pledge loan after 30-45 days to demonstrate creditworthiness to other lenders, which can lead to favorable terms and increased credit opportunities.

4. How does a pledge loan with Navy Federal Credit Union improve credit mix?

A pledge loan with Navy Federal Credit Union can improve credit mix by adding an installment loan to the credit profile, which diversifies the credit mix and positively impacts credit scores.

5. What are the benefits of demonstrating creditworthiness to other lenders?

Demonstrating creditworthiness to other lenders can lead to favorable terms on future loans, better interest rates, and increased credit opportunities, resulting in stronger financial stability.

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