Reply
New Contributor
CreditAce
Posts: 103
Registered: ‎02-19-2013
0

Credit unions more generous with CLs than big banks?

I've noticed credit unions tend to be more generous with CLs than big banks, especially for those of us building/rebuilding credit. Does anyone know why?

Valued Member
cschick
Posts: 57
Registered: ‎01-19-2013
0

Re: Credit unions more generous with CLs than big banks?

They have more of a hands on approach a human can look at the overall picture better than a computer which just looks at a set of rules. They also don't have the same profit structures as banks. Out at least those are my best guesses
FICO: 782(Ex, AMEX 8/12), Mortgage Pull(3.0%, 5/1 ARM from Local CU 2/2013): 725(EX), 757(TU), 772(EQ); 775(EX, Amex 8/14)
Cards: Amex BCE(10300), Discover(7000), Target (1000), PenFed Platinum Rewards Visa (8500), Chase Freedom(5000), Barclay Arrival+ (10000), Amex HHonors Surpass(11,800)
App'd: Barclay & Hhonors Surpass Aug 2014, PenFed & Freedom Feb 2013, Amex & Target Jul 2012, Discover Feb 2008 Gardening til ???
Goals: TBD, possibly a mortgage refi to a fixed rate or better adjustable
Established Contributor
Leadberry
Posts: 625
Registered: ‎01-31-2013
0

Re: Credit unions more generous with CLs than big banks?


CreditAce wrote:

I've noticed credit unions tend to be more generous with CLs than big banks, especially for those of us building/rebuilding credit. Does anyone know why?


Credit unions are not-for-profit member-owned organizations, so they don't pay income taxes.  They also aren't at the mercy of shareholders who may want to collect on annual dividends.  This frees up more cash for them to reallocate as they please, allowing them to be a little more relaxed in their lending.

   
   
Frequent Contributor
2011beginnings
Posts: 296
Registered: ‎02-01-2013
0

Re: Credit unions more generous with CLs than big banks?

I agree. Recently, I've been doing a lot of research on which CU to join in my area. I'm thinking my best bet might be donating to get in with PenFed but I'm not entirely sure.
PenFed AMEX: $5500 | AMEX BCE: $8300 | AMEX E: $5000 | BofA BBR: $5000 | Discover It: $6500 | CSP: $11500 | CF: $5500 | Citi DIVIDEND: $5700 | CITI TYP: $4600 | BofA CR: $7500 | CAP ONE Q: $3000 |

TU: 722 / EX: 763 / EQ: 735
New Contributor
OwNt
Posts: 62
Registered: ‎10-07-2007
0

Re: Credit unions more generous with CLs than big banks?

My personal experience has been that credit unions are less generous than banks. 

 

PenFed is my lowest limit, Alliant is among the lower ones, and DCU just plain refused membership.

~~Credit Cards~~
Alliant Platinum Rewards Visa, AmEx BCP, BofA Power Rewards, Bank of the West Platinum, Barclay Rewards World MC, Chase Freedom/Chase Sapphire Preferred, Citi Thank You Preferred/Citi Dividend Select, Discover IT, FNBOmaha, Paypal MC, US Bank Cash+/US Bank Perks+.

Total: $300,000+ in lines.
Established Contributor
NJTurnpike
Posts: 662
Registered: ‎02-20-2013
0

Re: Credit unions more generous with CLs than big banks?

PenFed is most definitely a great way to go. I'm doing the same in April. Going to split my pay between being direct deposited in PenFed and DCU with a token amount being sent to my current BigBank account to keep it open and free. aside from the convenience of ATM locations, I don't see why anyone would want to use BigBank account.


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
CreditKarma (4/19/13) TU-TR 701 | TU Vantage 788 | USAA FAKO (3/31/13) EX 728, EQ 699, TU 737 |
Inquiries (4/18/13) EX 13 | EQ 13 | TU 14
Valued Contributor
navigatethis12
Posts: 1,954
Registered: ‎01-24-2012
0

Re: Credit unions more generous with CLs than big banks?


OwNt wrote:

My personal experience has been that credit unions are less generous than banks. 

 

PenFed is my lowest limit, Alliant is among the lower ones, and DCU just plain refused membership.


That and terrible rewards is why I don't have any cards from credit unions. On the other hand, you see people one year or two out of bankruptcy getting 15 thousand lines from credit unions. I don't think they are as tolerable about "churners" or people who just open a lot of accounts.

New Contributor
CreditAce
Posts: 103
Registered: ‎02-19-2013
0

Re: Credit unions more generous with CLs than big banks?

Thanks all. I'm thinking about joining DCU in the future (currently banking with BofA). Their credit products seem a little vanilla but worth considering if it's a high CL. Do they pull your credit report twice - once for joining and once for the credit card app?

Moderator
09Lexie
Posts: 26,589
Registered: ‎09-13-2012
0

Re: Credit unions more generous with CLs than big banks?


CreditAce wrote:

Thanks all. I'm thinking about joining DCU in the future (currently banking with BofA). Their credit products seem a little vanilla but worth considering if it's a high CL. Do they pull your credit report twice - once for joining and once for the credit card app?


Yes, they pull twice. I would definitely make sure your membership is open before applying. Others have had problems with being able to join recently. 

 

I have been with them for years, so I am not sure what they may or may not have  been doing differently in new memberships. 

New Contributor
CreditAce
Posts: 103
Registered: ‎02-19-2013
0

Re: Credit unions more generous with CLs than big banks?


09Lexie wrote:

CreditAce wrote:

Thanks all. I'm thinking about joining DCU in the future (currently banking with BofA). Their credit products seem a little vanilla but worth considering if it's a high CL. Do they pull your credit report twice - once for joining and once for the credit card app?


Yes, they pull twice. I would definitely make sure your membership is open before applying. Others have had problems with being able to join recently. 

 

I have been with them for years, so I am not sure what they may or may not have  been doing differently in new memberships. 


Thanks Lexie, I'll definitely pay more attention to the details if I apply.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}