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New Contributor
Posts: 63
Registered: ‎10-05-2016
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NFCU secured card

I am just wondering does the NFCU secured card grow to unsecured eventually? As well being so new post discharge for chapter 7 is it better to just apply for secured or unsecured? I didn't want to waste inquiry to be denied for secured when unsecured will work just as well. Thanks for feedback

 

Discharged 3/23/17
Fico 8 Scores 3/28/17
EX 606/TU 566/EQ 613
Valued Member
Posts: 34
Registered: ‎10-12-2008
0

Re: NFCU secured card

As a general rule yes they unsecure. I believe after one year but someone else can give you the exact details. NFCU secured is the route I also plan on doing, hopeful to unsecure eventually

Starting the rebuild from BK 7 - Filed 2/28/17, 341 4/3/17, Awaiting discharge in June
pre BK: EQ-546 TU-562 EX-555
4/3/17: EQ-564 TU-571 EX-578
Live, learn, and overcome
Valued Member
Posts: 25
Registered: ‎03-22-2017
0

Re: NFCU secured card

It does after I think a year was mind.  Went unsecured and from $500 limit to $3k then upwards from there.  Best thing I could have ever done. 

CH13. Filed 2010, Discharged 2014, All fell off APR 2017.
Current Scores (4/17/17): 799 Transunion, 822 Equifax, 792 Experian
Re-stablished with a $500 NFCU secured loan that funded a $500 NFCU secured CC .
Current: NFCU Rewards (20K), NFCU Signature Rewards (20K), NFCU CLOC ($15k),PENFED Travel Rewards AMEX (20k), PENFED Platinum Rewards (20k), BankAmericard Travel Rewards Visa (20K), BankAmericard Alaskan Air Signature (21k), Barclaycard (15K), Discover Card iT (12K)
New Contributor
Posts: 55
Registered: ‎09-30-2016
0

Re: NFCU secured card

Regarding the first question: Secured is the way to go if you just got a discharge. There's a good chance you will be denied for an unsecured card less than 1 year post discharge.

 

The secured card may graduate: It is automatically reviewed for graduation after 12 statement cycles. Graduation is not guaranteed and generally cannot be requested early. 

 

I'm biased as an employee, but many consider Navy Federal's secured card one of the best: It earns rewards, has no annual fee, may graduate, and you have the option of limit increases. The only real downside is that there's a hard inquiry when applying for one - the results of the inquiry determine what interest rate is assigned.

Regular Contributor
Posts: 192
Registered: ‎12-07-2016
0

Re: NFCU secured card

Just as a reference point for you, I was discharged december 2016.  Scores were very low, worked on getting them up.  Applied for cash rewards in March with TU of 640.  Was denied with NFCU score of 300 out of 450.  Used SM to recon, still denied.  Asked them if they would reuse the same TU pull for a secured card, was approved the next day.

 

They say 1 year to graduate, but some people have seen them graduating after 4-5 statements.  

 

YMMV but I would agree that you have slim odds of being approved for unsecured soon after discharge.  If you have $500 you can use the same money to open a share secured loan and a secured card with NFCU if you want to add an installment loan to your profile as well.


BK 7 Starting Scores (12/2016): EQ-528. TU-486. EX-530.
Current Scores (4/2017): EQ-642. TU-646. EX-655.
Goal for 2017: 650's. - almost there!!
New Contributor
Posts: 63
Registered: ‎10-05-2016
0

Re: NFCU secured card


enjoimorenow wrote:

Just as a reference point for you, I was discharged december 2016.  Scores were very low, worked on getting them up.  Applied for cash rewards in March with TU of 640.  Was denied with NFCU score of 300 out of 450.  Used SM to recon, still denied.  Asked them if they would reuse the same TU pull for a secured card, was approved the next day.

 

They say 1 year to graduate, but some people have seen them graduating after 4-5 statements.  

 

YMMV but I would agree that you have slim odds of being approved for unsecured soon after discharge.  If you have $500 you can use the same money to open a share secured loan and a secured card with NFCU if you want to add an installment loan to your profile as well.


Thanks I think I am going to go with the secured, but wait another month. There are somethings I am disputing on credit report. CAN you also tell me the benefit of a secured loan? 

Discharged 3/23/17
Fico 8 Scores 3/28/17
EX 606/TU 566/EQ 613
Regular Contributor
Posts: 192
Registered: ‎12-07-2016

Re: NFCU secured card

Sure... I don't think you will likely be denied for the secured card so if you have the money I would just do it now.  They told me that they only pull the credit report to determine the APR for the card, and do not use it as a basis for approval.

 

A secured loan would help to add what is called an installment loan to your profile.  In order to maximize FICO scoring, you need revolving accounts (credit cards, lines of credit) in addition to an installment loan (auto loan, personal loan, mortgage, student loan, etc).

 

If you already have an installment loan, then a secured loan would not give you much benefit score wise other than adding another account in good standing with good payment history (assuming you pay it on time).

 

Basically the way that it works, is you deposit money into your savings account at NFCU.  You call and tell them you want to do a share secured loan.  Minimum amount is $250 but you can do as much or as little as you want.  They will hold the funds in your account as collateral and then deposit the loan into your checking.  As you pay off the loan, the funds are released from collateral and put back into your savings.

 

As an example, I did a $250 loan with them and payments are like $41 for 6 months.  Total interest paid will be around $1.60 on the loan.  Pretty cheap and easy option to add an installment loan.


BK 7 Starting Scores (12/2016): EQ-528. TU-486. EX-530.
Current Scores (4/2017): EQ-642. TU-646. EX-655.
Goal for 2017: 650's. - almost there!!
New Contributor
Posts: 63
Registered: ‎10-05-2016
0

Re: NFCU secured card


enjoimorenow wrote:

Sure... I don't think you will likely be denied for the secured card so if you have the money I would just do it now.  They told me that they only pull the credit report to determine the APR for the card, and do not use it as a basis for approval.

 

A secured loan would help to add what is called an installment loan to your profile.  In order to maximize FICO scoring, you need revolving accounts (credit cards, lines of credit) in addition to an installment loan (auto loan, personal loan, mortgage, student loan, etc).

 

If you already have an installment loan, then a secured loan would not give you much benefit score wise other than adding another account in good standing with good payment history (assuming you pay it on time).

 

Basically the way that it works, is you deposit money into your savings account at NFCU.  You call and tell them you want to do a share secured loan.  Minimum amount is $250 but you can do as much or as little as you want.  They will hold the funds in your account as collateral and then deposit the loan into your checking.  As you pay off the loan, the funds are released from collateral and put back into your savings.

 

As an example, I did a $250 loan with them and payments are like $41 for 6 months.  Total interest paid will be around $1.60 on the loan.  Pretty cheap and easy option to add an installment loan.


Thanks

 

Discharged 3/23/17
Fico 8 Scores 3/28/17
EX 606/TU 566/EQ 613
Valued Member
Posts: 25
Registered: ‎03-22-2017
0

Re: NFCU secured card

I agree with this-it's how I re-started.  Did the $500 secured loan to fund the $500 secured card.  Two reporting lines of credit and it payed off in spades.  Good luck to you! 

CH13. Filed 2010, Discharged 2014, All fell off APR 2017.
Current Scores (4/17/17): 799 Transunion, 822 Equifax, 792 Experian
Re-stablished with a $500 NFCU secured loan that funded a $500 NFCU secured CC .
Current: NFCU Rewards (20K), NFCU Signature Rewards (20K), NFCU CLOC ($15k),PENFED Travel Rewards AMEX (20k), PENFED Platinum Rewards (20k), BankAmericard Travel Rewards Visa (20K), BankAmericard Alaskan Air Signature (21k), Barclaycard (15K), Discover Card iT (12K)
New Contributor
Posts: 63
Registered: ‎10-05-2016
0

Re: NFCU secured card


Gypsy5326 wrote:

I agree with this-it's how I re-started.  Did the $500 secured loan to fund the $500 secured card.  Two reporting lines of credit and it payed off in spades.  Good luck to you! 


I just want to make sure I understand how the secured loan funded secured card exactly? 

Discharged 3/23/17
Fico 8 Scores 3/28/17
EX 606/TU 566/EQ 613

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