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Frequent Contributor
newportguy
Posts: 351
Registered: ‎11-11-2012

Re: Pen Fed odds?


chnceit wrote:

bs6054 wrote:

newportguy wrote:

I see the OP got her letter and it said to much available credit (which is Debt/Income ratio)  So my statement was correct and not one of those YMMV moments.

OP, congrats on your approval


Is that really Debt/Income?  At least for mortgage, DTI is (actual amount owed)/income (or perhaps monthly payments/monthly income) not this, which is just total credit line.


After doing some research DTI and too much available credit is two different things. Thanks BS for clarifying DTI


Well here's my research!!!

 

Is Your Debt-To-Income Ratio High?

When lenders evaluate your loan application, they consider available credit as an opportunity for debt. They may figure your debt-to-income ratio as if your credit cards were totally maxed out to gauge you at your riskiest debt level possible.

You can do a similar calculation. If you maxed out your credit cards what would your debt-to-income ratio look like? Would it rise above 37%? If so, you should think about closing some of your unused credit card accounts.

Also here's the link ......  http://credit.about.com/od/usingcreditcards/a/numcreditcards.htm

 


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Valued Contributor
chnceit
Posts: 1,524
Registered: ‎08-17-2008

Re: Pen Fed odds?


newportguy wrote:

chnceit wrote:

bs6054 wrote:

newportguy wrote:

I see the OP got her letter and it said to much available credit (which is Debt/Income ratio)  So my statement was correct and not one of those YMMV moments.

OP, congrats on your approval


Is that really Debt/Income?  At least for mortgage, DTI is (actual amount owed)/income (or perhaps monthly payments/monthly income) not this, which is just total credit line.


After doing some research DTI and too much available credit is two different things. Thanks BS for clarifying DTI


Well here's my research!!!

 

Is Your Debt-To-Income Ratio High?

When lenders evaluate your loan application, they consider available credit as an opportunity for debt. They may figure your debt-to-income ratio as if your credit cards were totally maxed out to gauge you at your riskiest debt level possible.

You can do a similar calculation. If you maxed out your credit cards what would your debt-to-income ratio look like? Would it rise above 37%? If so, you should think about closing some of your unused credit card accounts.

Also here's the link ......  http://credit.about.com/od/usingcreditcards/a/numcreditcards.htm

 


You maybe right and I maybe wrong or vise versa. So there a lot of discussion about this particular topic

 

Too Much Available Credit

This is one of the questions we get all the time at Credit.com. Consumers wonder if they should close some of their credit cards because their total credit limits are so high. They worry that lenders must see that as risky: after all, if they decided to suddenly use all that credit they could really get into trouble.

“No, there’s nothing about having a lot of credit available that can hurt your score,” says Paperno. “In fact, all other things being equal, more revolving credit availability can, for some, mean a lower credit utilization ratio (balances compared to credit limits), which can actually help the credit score.”


Here is the link http://blog.credit.com/2012/06/can-you-have-too-much-credit/

 

DTI is heavly calculator for car and mortgage loans


$100K in Credit
Last Credit Card App: 11/16/13
Frequent Contributor
newportguy
Posts: 351
Registered: ‎11-11-2012

Re: Pen Fed odds?


chnceit wrote:

newportguy wrote:

chnceit wrote:

bs6054 wrote:

newportguy wrote:

I see the OP got her letter and it said to much available credit (which is Debt/Income ratio)  So my statement was correct and not one of those YMMV moments.

OP, congrats on your approval


Is that really Debt/Income?  At least for mortgage, DTI is (actual amount owed)/income (or perhaps monthly payments/monthly income) not this, which is just total credit line.


After doing some research DTI and too much available credit is two different things. Thanks BS for clarifying DTI


Well here's my research!!!

 

Is Your Debt-To-Income Ratio High?

When lenders evaluate your loan application, they consider available credit as an opportunity for debt. They may figure your debt-to-income ratio as if your credit cards were totally maxed out to gauge you at your riskiest debt level possible.

You can do a similar calculation. If you maxed out your credit cards what would your debt-to-income ratio look like? Would it rise above 37%? If so, you should think about closing some of your unused credit card accounts.

Also here's the link ......  http://credit.about.com/od/usingcreditcards/a/numcreditcards.htm

 


You maybe right and I maybe wrong or vise versa. So there a lot of discussion about this particular topic

 

Too Much Available Credit

This is one of the questions we get all the time at Credit.com. Consumers wonder if they should close some of their credit cards because their total credit limits are so high. They worry that lenders must see that as risky: after all, if they decided to suddenly use all that credit they could really get into trouble.

“No, there’s nothing about having a lot of credit available that can hurt your score,” says Paperno. “In fact, all other things being equal, more revolving credit availability can, for some, mean a lower credit utilization ratio (balances compared to credit limits), which can actually help the credit score.”


Here is the link http://blog.credit.com/2012/06/can-you-have-too-much-credit/

 

DTI is heavly calculator for car and mortgage loans



I didn't say i agree with the way DTI  works  on CC's and people should close them to keep DTI low , all i was saying is that some lenders may use it on CC apps. Your right DTI is heavly used for car & mortage loans.


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Established Member
jnnngs_mrcs
Posts: 24
Registered: ‎12-28-2012

Re: Pen Fed odds?

Pen Fed is very conservative.
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Regular Contributor
lajntx
Posts: 245
Registered: ‎06-26-2009

Re: Pen Fed odds?

[ Edited ]

jnnngs_mrcs wrote:
Pen Fed is very conservative.

You can say that again. I just opened a membership with them and was thinking of transfering all of my banking too them.

 

Then they hit me with this when trying to open a checking account ( mind you the nearest branch is 250 miles away )

 

As a result of information obtained in a credit report from the credit reporting agency listed below, the following restrictions will be apply:

  • All check deposits must be to the Regular Share account and are subject to a nine (9) business day hold.
  • Overdraft protection not available
  • Debit Card not available, however, PenTeller Limited card is available
  • Surcharge free transactions only available through Pentagon Federal ATMs
  • Deposit Anywhere service is not available
  • ACH transfer service (transferring funds from your account with another financial institution other than Pentagon Federal Credit Union to an account with us electronically) is not available.

They want me to transfer tens of thousands in deposits and assests to them only return me to Pre- 1990`s era banking? :smileyfrustrated:

 

I think I`ll just walk away, keep my deposits in Capital One & Chase for now, and let them keep that $5 membership fee as it isnt worth my time to call and cancel :smileyvery-happy:

EQ- 647, EX- 641, TU- 644
Sept `13 - ZERO Debt, 100% Liquid, AND a climbing credit score. Eat your heart out Dave Ramsey!
Senior Contributor
longtimelurker
Posts: 4,172
Registered: ‎04-22-2013

Re: Pen Fed odds?

Was this a normal CRA, or something like cheksystems?   As you say, with restrictions like that, not worth bothering about!


From highest to lowest: Amex BC (42K), Cap One , CSP, Fidelity Amex, Cap One, Penfed Plat Rewards x2, , Citi TY Pref, Citi TY Premier, Citi Plat Select AA, US Bank Cash Plus, Chase Amazon, Chase Freedom, Amalgamated Bank MC, Citi Forward, BCE, Sallie Mae (5K)

Regular Contributor
lajntx
Posts: 245
Registered: ‎06-26-2009

Re: Pen Fed odds?


longtimelurker wrote:

Was this a normal CRA, or something like cheksystems?   As you say, with restrictions like that, not worth bothering about!


Normal, they only pulled Equifax, My Chexsystems and Scan files are clean.

 

I`m thinking I might just throw them a VERY small bone such as  a bare minimum balance savings account, and maybe in a couple of years re-look into this as they do give out some rather great loan rates and killer CL`s on their cards.

EQ- 647, EX- 641, TU- 644
Sept `13 - ZERO Debt, 100% Liquid, AND a climbing credit score. Eat your heart out Dave Ramsey!
Regular Contributor
USF813
Posts: 229
Registered: ‎06-04-2013

Re: Pen Fed odds?

I don't think I'd bother with Penfed. It sounds like people are just wasting an inquiry on them. There are better credit unions out there.
Chapter 7 Discharged 12/2009
FICO EQ: 700 (7/26/13)
FICO TU: 727 (1/31/14)
FICO EX: 670 (as of 11/6/13) - Several lates from USAA
NFCU GoRewards: $5k
Delta Community Visa: $1500, Best Buy: $500

Established Member
slickshoes182
Posts: 22
Registered: ‎05-10-2013

Re: Pen Fed odds?

[ Edited ]

About too much available credit:

In my experience, PenFed used information from Equifax to create their own score (on a scale of 0 to 950), not a FICO. Thus, while things like "Too Much Available Credit" may not reduce your FICO score, it can be a negative in the other score that Penfed uses. The credit.com quote only refers to standard FICO scores (such as available on this site), and I have heard of many other scoring systems that care about "Too Much Available Credit" too. Keep in mind there are a huge number of scoring systems (e.g. Fico, Transrisk, etc) and variants (e.g. "Automobile Enhanced," "Credit Card Risk enhanced," etc) . There may be products or individuals where Penfed uses Fico, and products or individuals where Penfed uses other scoring models.

 

On ACH transfer limits:

My account has the $50 ACH per day restriction using Penfed's ACH service. My understanding is that this is typical and the restriction lasts for 6 months. After that I think they let you transfer upto $5K per day using Penfed's site. This comes from some sort of liability that the ACH initiating financial institution can be at risk for. However, this does not impact the amount I can transfer via ACH using other financial institutions (deport or withdrawl). I recently used my stock broker to transfer 11K into my Penfed account via ACH and had no problem, despite the $50 limit if I used Penfed's website to use the service. The poster who was restricted from using ACH at Penfed may want to check if they can initiate the ACH's at other financial institutions to get around this restriction.. my understanding is that using the other financial instutions to withdraw/deposit at Penfed would eliminate their risk.


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