Penfed Denied Platinum Cash Rewards. Approved Classic

[gr33nsuit]

Penfed Platinum Cash Rewards

I applied six months ago but got straight out denied

Applied yesterday and got $8500 but needed further review 

Denied. Called to recon but denied again.

Limited history, I only have less than two years credit history since I'm 20

I have Penfed checking/saving/shareloan ($500)/overdraft for 1 year

They approved me for $500 VISA Classic with $500 deposit on saving.

What would you guys recommend me to do? 

Should I accept the VISA Classic and upgrade it later?

[09Lexie]

What were the reasons for denial? And what is your income?

[gr33nsuit]

1. limited credit history but I have one year with them (with regular usage of checkings)

2. Pyramid something i forgot

I make like $30,000 since I'm also a student.

[09Lexie]

Pyramiding debt is common with PenFed.

They are going to want a rev cc history not just your banking relationship.

[UFGuy2006]

I would not accept it; penfed does not process upgrades like the way other lenders do. Basically if you are able to get them to offer a product change / upgrade, the close the existing line and open a new line w/ a new opened date, etc. I'd just give yourself another 6-12 months to let accounts age, inquiries fall off and reapply for the card you want.

[unusuallyconfused]

Me?

I wouldn't accept that offer. And I am a PedFed member and was deluded into thinking I had a shot at their credit prodcuts. After learning even more about PenFed after joining them, I think getting one of their cards is quite difficult. Sure, people do it, but they are far and few in between.

They do this pyramiding thing that you mentioned: they say you are using credit to pay credit (borrowing from one card to pay another in plain English).

PenFed is ueber conservative and the fact that you were "approved" and then denied after an eyeball review would be too much for me personally.

Plus think about it: A $500 tradeline doesn't help you at all. The major credit scoring models like to see at least a 2k average on your cards (or something along those lines). Plus the "credit" is YOUR MONEY to boot! And it's unlikely that your CL will "grow" unless you deposit more money with them.

AND...unlikely they will graduate you.

Sure, for those "in the know", having a PedFEd card in your wallet is quite the unicorn to brag about, but with so many other cards out there giving arguably better rewards, better limits, I'd say "thanks" but "no thanks".

But it's your decision to make based upon what you need, what you want, what makes you sleep at night!

[user5387]

I have a Penfed card with a $3500 limit.  I got it with high scores.  I have maintained those scores, but have never gotten a CLI or preapproval or anything. If I had to do it again, I'm not sure that I would.

It's helpful to remember that old saying -- "there are plenty more fish in the sea".  For example, I am interested in no-AF cashback cards, and some of the other choices are Fidelity Amex, US Bank Cash+, Discover It, Amex BCE, Barclay Sallie Mae, BOA Travel Rewards, and so on.

Posters on this forum often push the idea that doing a recon is always a win.  However, I'm not sure that's true, if you get stuck with a low CL and have other choices.