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Frequent Contributor
Posts: 411
Registered: ‎04-18-2007
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Re: Credil Limit Reduction from a Credit Union?

Credit unions take good care of its members and they will work with you when things go bad sometimes. If you do not default on them, they will hardly take any adverse action on your accounts. I love them, trust them, and will never walk away from them. They gave me a chance when no big bank would touch me, and I don't have to worry or be scared each time I use their cards. I hate big banks and it pleases me to see them go under one at a time. All my bank cc are having eternal peace in my drawer, and I could care less if the cld to 0. The bal will always be 0. Go cu, go!!!!!!! good thread, Txjohn.
Regular Contributor
Posts: 148
Registered: ‎08-27-2008

Re: Credil Limit Reduction from a Credit Union?

I totally agree; for years I've had accounts with the major banks (BOA, Chase, Discover, Barclays), and although I have not been hit with a CLD yet, I simply do not have the confidence each time I pull out one of their cards. I feel compelled to check my accounts on-line on a daily basis to make sure that my CL's are still in-tact. Then I end-up reading these posts about the horrible things that the big baks are doing to customers, so I also moved toward credit unions as a safety net.

 

I started first with Alliant Credit Union (LOVE them!) and opened a DDA, Savings, OD Line of credit, Car loan AND a Platinum Rewards Visa. I've made them my MAIN bank and have moved all of my BOA accounts to them. I was hemming and hawwing for awhile about a second credit union to establish a relationship with.

 

I've written many threads about my research and was leaning towards Delta CU. I opened a DDA and Savings with them earlier this week, found them to be very professional and easy to deal with. However my original plan of obtaining a credit card with them got sidetracked when I spoke to a neighbor of mine. He had moved his accounts to a local Massachusetts Credit Union in the town where I live (called Jeanne D'Arc Credit Union). He was so pleased with them and opened several accounts including a Visa card.

 

The next day I stopped by the credit union to inquire about their products. By the time I had left I had yet another Visa card with a $10K limit, an OD line of credit, a DDA and Savings. They became my secondary relationship despite having also opened accounts with Delta. I figure I'll keep the Delta relationship is any of my other accounts go south with the credit crisis. I'd be afraid to open a credit card with them now since I already opened two new credit union credit cards. If I had less tradelines (I currently have 25 with the 2 new CU Visa cards) I might have jumped at the chance to open a CC with Delta.

 

Sorry for the wordy post, but thought I'd share my credit union story with the group.

 

Have a good weekend!

Established Contributor
Posts: 665
Registered: ‎03-31-2007
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Re: Credil Limit Reduction from a Credit Union?

I have 8 credit unions in my credit profile.  I have not had an AA by any of them.
Regular Contributor
Posts: 148
Registered: ‎08-27-2008
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Re: Credil Limit Reduction from a Credit Union?

[ Edited ]

Do you have credit card accounts with all 8 credit unions? I'm worried that if I open up a third credit union account that the other lenders might decide to CLD me or jack-up my APR.

 

What is your credit profile? How many active tradelines? How many new accounts?

 

Thanks

Message Edited by thebostonredsox on 04-19-2009 04:51 AM
Member
Posts: 8
Registered: ‎03-30-2009
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Re: Credil Limit Reduction from a Credit Union?

The only CLD I got so far was from Eastern Financial Florida Credit Union.  I opened an account a few months ago hoping to build another good relationship with a CU.  Was approved for $2K line of credit.  Took it all out for about a month and paid most of it off the next month.  Next thing I know, the line was decreased to $800.

 

I don't believe it was my credit since AMEX gave me a $6K CLI so I think EFFCU just sucks.

Regular Contributor
Posts: 148
Registered: ‎08-27-2008
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Re: Credil Limit Reduction from a Credit Union?

EFFCU is in dire straits right now, bad financial shape so I'm not surprised they would have done this.
Senior Contributor
Posts: 3,671
Registered: ‎01-10-2008
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Re: Credil Limit Reduction from a Credit Union?

[ Edited ]

FaircreditguyFL wrote:
I have 8 credit unions in my credit profile.  I have not had an AA by any of them.

+1

 

i'm a relatively new member at 5 out of the 8 i belong to.  the ones i chose all appear to be in v. good financial shape currently.

Message Edited by score_building on 04-19-2009 09:44 PM
FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
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Re: Credil Limit Reduction from a Credit Union?

[ Edited ]

jaxstraw wrote:

PenFed closing accounts now

 

My brother logged on and found his available balance at $0.

25k limit card with 1500 balance, never late, he has an auto loan , personal loan, checking ,savings, direct deposit, and CD with them.

He called and was told due to a periodic AR in early March they shut it down.

He has always averaged 710-720 EQ score but for Jan to early March this year an erroneous entry on all three CR dropped his score to the low 600's. He has since had them corrected and his scores are now back to 690-710 across all three. They originally approved with a 710ish EQ score.

Anyway, he called in, they told him to submit a fax to the loan committee explaining why he should have the account re-opened,and wait a week or two for a reply.

During this call he was transferred up the line and finally a Senior CSR told him they are now AR'ing and closing thousands of credit card accounts due to lower scores and/or negative entries. She said they have been fielding thousands of calls from members over the past week and are overwhelmed with members wanting an explanation.

She explained that this is not a random or one time thing, they are specifically reviewing thousands of accounts with one purpose. To see if they should AA and close them down.

I'll keep an update on his status but this is not good.
 

 

Jax

I pulled a copy of this from another thread because it was VERY relevant.  Anybody else heard or have info on this news about PenFed?

Message Edited by txjohn on 04-19-2009 09:39 AM

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Member
Posts: 13
Registered: ‎03-25-2009
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Re: Credil Limit Reduction from a Credit Union?


txjohn wrote:

jaxstraw wrote:

PenFed closing accounts now

 

My brother logged on and found his available balance at $0.

25k limit card with 1500 balance, never late, he has an auto loan , personal loan, checking ,savings, direct deposit, and CD with them.

He called and was told due to a periodic AR in early March they shut it down.

He has always averaged 710-720 EQ score but for Jan to early March this year an erroneous entry on all three CR dropped his score to the low 600's. He has since had them corrected and his scores are now back to 690-710 across all three. They originally approved with a 710ish EQ score.

Anyway, he called in, they told him to submit a fax to the loan committee explaining why he should have the account re-opened,and wait a week or two for a reply.

During this call he was transferred up the line and finally a Senior CSR told him they are now AR'ing and closing thousands of credit card accounts due to lower scores and/or negative entries. She said they have been fielding thousands of calls from members over the past week and are overwhelmed with members wanting an explanation.

She explained that this is not a random or one time thing, they are specifically reviewing thousands of accounts with one purpose. To see if they should AA and close them down.

I'll keep an update on his status but this is not good.
 

 

Jax

I pulled a copy of this from another thread because it was VERY relevant.  Anybody else heard or have info on this news about PenFed?

Message Edited by txjohn on 04-19-2009 09:39 AM

YIKES!  My wife and I just joined and opened Visa Travel Rewards and auto loan.  Hope since we are new we were all ready considered under any new scrutiny :smileyindifferent:

Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
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Re: Credil Limit Reduction from a Credit Union?

I'm recently new to PenFed also....around 2 weeks ago i think.

 

From what I am reading, it appears that everyone I can find posts about CLD/closure was due to derogatory items on CR (error or not, they had them) and their scores were below 700 at the time of AA.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
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