NFCU Credit Card

[Anonymous]

So I signed up my roommmate for an NFCU membership. His credit score is in the ~850 range. My credit score is 573. I was thinking I would apply as his co-applicant, that way avoiding the "Authorized User" label on my credit report. Would his score suffer? I spoke with a rep at the NFCU and they said the approval and CL is based on the primary applicant's credit (which in this case would be a very good thing).

[Anonymous]

Hey GBC,

Your question made me curious. So I called Navy Fed

a few moments ago to find out for myself.

Here's what the CSR told me:

No, your roommate's score will not suffer. Just make sure he

applies as the Primary on the account and you're the co-applicant.

Approval and credit limit will be based on his EQ score....not yours.

Since you're the co-applicant, everything will be fine as long as the

primary accountholder (your roommate) makes payments early or

on time. In the event he doesn't, Navy Fed will look to you as the

co-applicant to make good on the account balance.

I was under the impression that Navy Fed members had to be related

(read: family members) in order to apply for joint personal credit.

The CSR told me this is not true.

And you're right that applying as a co-applicant is much better than

apping as an "Authorized User". FICO is changing the rules on AU's

so you're smart to get out ahead of the curve. But I would just

caution you to weigh this joint credit decision carefully. Make sure

you REALLLLLLY know your roommate well enough to apply for credit

with him. You never know that the future will bring...

************************************************************

Edit to Add: The CSR did point out that both the primary and 

co-applicant must apply together at the same time, either over

the phone or in person. Navy Fed wants to make sure both parties

are fully aware of their responsibilities before completing the 

joint application. This is for your mutual protection and benefit. 

************************************************************

Please keep us posted on your progress. Good luck to you!!! 

CanDo

"The right attitude is everything"

Message Edited by CanDoAttitude on 10-23-2008 06:06 PM

Message Edited by CanDoAttitude on 10-23-2008 06:07 PM

[FretlessMayhem]

With ~850 scores, I wonder how bad the ding is for the inq and new account.

[Creditaddict]

did you apply? get approved?

[Anonymous]

I haven't applied yet-- still waiting for my co-app's "internet" log in info NFCU mails. I'd prefer to do an app online.

I WAS, however, approved @ Equifax 573 for a 19k auto loan. That was accomplished without a co-signer. 

[Anonymous]

Thanks for your great advice!!! I'll be sure to let you guys know all the details once I apply with my co-app. I'm expecting a fairly big CL-- as his current cards are something like: AMEX: 30k, BOA 40k...etc

[Anonymous]

You're welcome, GBC. I hope everything works out for you.

I know your preference is an online application, but you're 

better off apping over the phone. Navy Fed will not send

out your card until they've spoken with you to verify that

you do, in fact, want to be a joint account holder. They

also want to make sure that you're aware of your

responsibilities in the event your roommate defaults.

I know what I'm talking about. I went thru this back in July

with my brother (also a Navy Fed member).

Initially, I added him as an Authorized User on my nRewards

Mastercard. Then I found out that Navy Fed doesn't report

card activity for AU's to the credit bureaus. So I changed his

status to joint account holder, but he had to get on the phone

with Credit Card Services at Navy Fed and speak with them

personally. Once he did that and agreed to his responsibilities,

he got his card within 5 days. I'm still the Primary on the account,

but he has to pick up the slack if something happens.

So no matter how you apply, you're gonna have to speak with

the credit card folks at Navy Fed. Calling in the joint app with

your roommate will be a 1-step process; apping online will be a

2-step process (online app and followup phone call to get your

card). So like I said, it's best to keep things simple and get

everything done right the first time.

Once again, I hope things work out for you. Please keep us posted

on your progress. Enjoy the weekend!  

CanDo

"The right attitude is everything"

[TangMeister]

---

@Anonymous wrote:

I haven't applied yet-- still waiting for my co-app's "internet" log in info NFCU mails. I'd prefer to do an app online.

@I WAS, however, approved @ Equifax 573 for a 19k auto loan. That was accomplished without a co-signer. 

---

If you take out an auto loan with NFCU and establish some pay history, I bet you can get your own CC with them in about 6 - 12 months.  They will work with you...just about the best CU around when it comes to overlooking baddies and low scores.  Regardless, good luck, and glad you got in!

[Anonymous]

*Update*

With me as co-app, we were approved for a 30k Platinum Visa @ 7.9. I also got a Navchek CL @ 500. This is on top of my 19k car loan @ 11.75.

My credit scores were 573 when I applied for the car loan, 540 (new credit) when I applied for the Navchek line of credit. Of course, for the Platinum Visa my score didn't matter, just the income (40k).  

[Anonymous]

Super Congrats GBC!!!!!

A $30,000 credit limit was almost exactly what you were

expecting, so I'm thrilled that everything worked out for you

guys. The NAVChek line will grow over time, so take good

care of the credit card and the auto loan and Navy Fed will

raise the limit to 5-figs in no time. 

Once again, Congratulations on your success. Enjoy!!!!! 

CanDo

"The right attitude is everything"

Message Edited by CanDoAttitude on 10-27-2008 06:12 PM