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New Visitor
Posts: 1
Registered: ‎05-06-2013
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Help with USAA/NFCU??

Hello myfico! I'm new to these forums. Based on what a dear friend was able to tell me, and his encouragement to join this site, I have a few questions. My story is that I've messed up my credit when I came upon some hard times: a mandatory move from Ohio to Louisiana and being employed on part-time. Now I'm full time and my money situation is much much better. I'm working on my credit with the dream of being able to dump this high rent and purchase a home!

 

My credit profile is this:

AAOA 5 years

1 auto loan doing well with

about 6 credit inquiries

Last FICO about a month ago is 590

 

Was approved for Cap 1 secured card had it for a year limit is $400. Unsecured Cap 1 $500 (Journey) My husband's credit profile is similar to mine and I'm also an AU on his $300 and $500 Cap 1 cards. UTL is at 29% but I always PIF (that's just what is recently reported last month). Today my friend advised me to apply for Care Credit  and was approved for $1,000. Very excited because now I'm in with GECRB which I'm told is a great bank to work with.

 

My credit gets rough where the collections are concerned. I have about 8 accounts (mostly medical) recently reporting as negative. Here is my question. My husband is military and I've heard that they are pretty good with approvals over at USAA or NFCU. What I would like to do is pay off all collections using a 0% offer with a nice credit line. If this will not work, I will have to use some of my 401K and I just wanted more information regarding my idea of USAA/NFCU before dipping into my 401K.

 

What do you guys think my chances are for getting any help from these lenders? Am I completely off base and should just use my 401K. Most collections are recent and if I don't get them paid, I'll never see a home loan in my future for a long time! Based on the info my friend gave me from the items he's read here at myfico he says that it might be worth a try with these lenders before taking a hit on the 401K. Appreciate any thoughts in advance!!

Contributor
Posts: 93
Registered: ‎12-16-2012
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Re: Help with USAA/NFCU??

[ Edited ]

comebackgal wrote:

Hello myfico! I'm new to these forums. Based on what a dear friend was able to tell me, and his encouragement to join this site, I have a few questions. My story is that I've messed up my credit when I came upon some hard times: a mandatory move from Ohio to Louisiana and being employed on part-time. Now I'm full time and my money situation is much much better. I'm working on my credit with the dream of being able to dump this high rent and purchase a home!

 

My credit profile is this:

AAOA 5 years

1 auto loan doing well with

about 6 credit inquiries

Last FICO about a month ago is 590

 

Was approved for Cap 1 secured card had it for a year limit is $400. Unsecured Cap 1 $500 (Journey) My husband's credit profile is similar to mine and I'm also an AU on his $300 and $500 Cap 1 cards. UTL is at 29% but I always PIF (that's just what is recently reported last month). Today my friend advised me to apply for Care Credit  and was approved for $1,000. Very excited because now I'm in with GECRB which I'm told is a great bank to work with.

 

My credit gets rough where the collections are concerned. I have about 8 accounts (mostly medical) recently reporting as negative. Here is my question. My husband is military and I've heard that they are pretty good with approvals over at USAA or NFCU. What I would like to do is pay off all collections using a 0% offer with a nice credit line. If this will not work, I will have to use some of my 401K and I just wanted more information regarding my idea of USAA/NFCU before dipping into my 401K.

 

What do you guys think my chances are for getting any help from these lenders? Am I completely off base and should just use my 401K. Most collections are recent and if I don't get them paid, I'll never see a home loan in my future for a long time! Based on the info my friend gave me from the items he's read here at myfico he says that it might be worth a try with these lenders before taking a hit on the 401K. Appreciate any thoughts in advance!!


Couple points.

First, I hope your aware that just paying collections does not mean they will fall off your credit report. They are under no obligation to remove the collection from your report if it is indeed a legitiment charge. 

 

Second, How do you have medical bills with your husband being active duty youi should have full coverage. Were you not married at the time?

 

Third, If you had no insurance or income did you attempt contact each of the medical services and ask for assistance, almost all hospitals and large practices have some form of assistance program that can cover up to 100%. 

 

Fourth, With the collections already reporting if you choose to pif on them it would be worth your while to see if you could first negotiate a PFD agreement before making any payments. make sure you get this in writing before sending them a dime. 

 

Fifth. You going to be facing an uphill battle at USAA and NFCU with sub 600 score, Your more then likely going to have to go with the secure card option for both of them at the beginning. However within a years time you will probably be able to graduate to an unsecured card from NFCU and possibly with USAA. If your an insurance member of USAA you might be able to get a unsecured card around 620-640.  As with all thing each persons experience can differ.

 

To improve your chances down the road with USAA I would recommned you open a checking account with them and get insurance from them if you have not already. This will make you an associate member which for all practical purposes is a full member, your just not eligible for an SSA. IF your husband is a E7 or above you might be SSA eligible not sure how it works for active duty these days but USAA has outstanding CS and can answer any questions you have. Both USAA and NFCU have free credit rebuilding programs and services to help you manage debt and there worth checking out. Regardless you should start your relationship with both companies ASAP as with time both companies will be good to you. 

 

Start writing GW letters to all the medical companies it wont hurt to mention your the wife of an active duty serviceman. 

 

Good luck

Regular Contributor
Posts: 163
Registered: ‎02-07-2008
0

Re: Help with USAA/NFCU??

Welcome comebackgal and what a motivating name as you work on your credit!!  You are in the right place, there are credit gurus here!  Before you pay anything, see if you can negotiate  pay-for-deletes on those accounts and get it IN WRITING!!  You pay the bill and they delete the negative information or the account altogether from your reports. I would then wait for it to be removed before contacting the CUs.  They will be good to you in the end once those scores are better.  You also may get more hits on this subject in the rebuilding your credit section.  You go girl and good luck!!

 


Starting Score:EQ 560t> TU 560EXP 570
Current Score:EQ 674t> TU 697EXP 700
Goal Score:EQ 700> TU 700EXP 700>

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Valued Member
Posts: 37
Registered: ‎10-13-2010
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Re: Help with USAA/NFCU??

[ Edited ]

The board keeps eating my posts/edits.... Smiley Sad

 

Your score (assuming it's EQ Beacon 5.0, like what you get on this site) is 22 points better than what I had when I got a Visa Signature cashRewards card from NFCU.  However, my APR is high, and as far as I know (which isn't far, I'll admit), there aren't any 0% offers at the moment.  Is there a special promotion for active duty out there?

 

Edit: Just noticed Miltary Appreciation Week on the NFCU site, and the 6-month 0% APR CC offer.


Starting Score: 461 (EQ 10/2012)
Current Score: EQ 622
Goal Score: 660


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Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: Help with USAA/NFCU??

I think you should apply for nrewards or Platinum with NFCU. Leave USAA alone for now.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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Established Contributor
Posts: 573
Registered: ‎10-21-2012
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Re: Help with USAA/NFCU??

NFCU approved me for a $5k VISA Siggy with a score of 584 and 5 liens + 8 or 9 unpaid collections.  7 months later I just got a CLI to $25k.  Smiley Happy

 

DO NOT liquidate money from your 401k to pay the collections.  You will have to pay a VERY steep penalty on it, not to mention the impact to your retirement nest egg.  If you are talking about a 401k loan, that's different.  However, if you leave your job you will have to pay back whatever remains of the loan or pay the penalties to the iRS.  

 

Make sure you secure a PFD agreement before payment.  Paying a collection will not improve your score in the slightest and in some cases will damage it.



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


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