PenFed Membership

[echoguy32]

Recently applied for membership at PenFed. I was approved however, I received a Score Watch alert showing a hard inquiry on Equifax! OMG!!! I called the CSR and she stated they do to verify membership. I stated I didn't apply for any products just the membership. She stated they will use this score for two months just in case. I feel like I wasted an inquiry applying for membership. Even though I just got approved for 10k with NFCU, I'm a little skeptical about applying for their cc with my scores.

Should it have been a soft pull? Has anyone else encountered this?

As always thanks!!!

[cw81]

That is standard M.O.  for  Penfed  they  will use that  inq for the next 60 days.   They are a very conservative  lender and you will need scores in the mid to high 700s for their credit products. They do not like new accounts or  inqs  within 6 months to  a year  of  applying for their products  or you will be accused of building pyramids,  That said  since they use the same pull  you can use that  to see if you get something  nothing ventured nothing gained.

[echoguy32]

If I would've known this is the standard, I would have waited until the NFCU began reporting. Oh well, I guess this was a learning experience and hopefully someone can make use of this info on the forums.

Thanks!

[cw81]

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@echoguy32 wrote:
If I would've known this is the standard, I would have waited until the NFCU began reporting. Oh well, I guess this was a learning experience and hopefully someone can make use of this info on the forums.

Thanks!

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I am sorry about that but most of the information about Penfed and other lenders is here  on this board or some other boards  you really have to research.  I don't think NFCU reporting would really help you much with  Penfed  either.  It would make you look more like a pyramid builder in their eyes I think.  

At any rate  next time you have your eye on a product from a lender   a little research will  keep you abreast of their practices and what to do.  I  like to be prepared  so when I do  app  i am maximizing my chances of approval.

[Guava]

cw81, what is a pyramid builder?

[vish1]

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@echoguy32 wrote:
Recently applied for membership at PenFed. I was approved however, I received a Score Watch alert showing a hard inquiry on Equifax! OMG!!! I called the CSR and she stated they do to verify membership. I stated I didn't apply for any products just the membership. She stated they will use this score for two months just in case. I feel like I wasted an inquiry applying for membership. Even though I just got approved for 10k with NFCU, I'm a little skeptical about applying for their cc with my scores.

Should it have been a soft pull? Has anyone else encountered this?

As always thanks!!!

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With penfed, its always a HP for membership. I was in the mid of the process of applying for membership and stopped and searched here and figured that they will do a HP and dropped the idea to apply for membership as I dun see myself applying for any credit with them soon.

[cw81]

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@silver0187 wrote:

cw81, what is a pyramid builder?

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Do  a search for   pyramiding debt   PENFED's  favorite reason for denial   another term for it is being  "Egyptian"  but  I  don't  know if that is  PC so  I  didn't use that.

It has a few meanings but   normally  if yo are acquiring more credit   while your  debt is not really going down   basically  you are making  your util look good by getting more  cards with higher limits  PENFED   denies you fro pyramding debt. 

[DI]

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@cw81 wrote:

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@silver0187 wrote:

cw81, what is a pyramid builder?

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Do  a search for   pyramiding debt   PENFED's  favorite reason for denial   another term for it is being  "Egyptian"  but  I  don't  know if that is  PC so  I  didn't use that.

It has a few meanings but   normally  if yo are acquiring more credit   while your  debt is not really going down   basically  you are making  your util look good by getting more  cards with higher limits  PENFED   denies you fro pyramding debt. 

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+1.  That explains it quite well!

[creditguy-378]

whenever you open a bank account they pull checksystems and a cb report that's standard

[Guava]

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@DI wrote:

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@cw81 wrote:

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@silver0187 wrote:

cw81, what is a pyramid builder?

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Do  a search for   pyramiding debt   PENFED's  favorite reason for denial   another term for it is being  "Egyptian"  but  I  don't  know if that is  PC so  I  didn't use that.

It has a few meanings but   normally  if yo are acquiring more credit   while your  debt is not really going down   basically  you are making  your util look good by getting more  cards with higher limits  PENFED   denies you fro pyramding debt. 

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+1.  That explains it quite well!

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Thanks for the explanation!