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Will NFCU approve credit card if utilization is 50%? My membership is now active but I'm worried I shouldn't apply for a credit card until my utilization comes down.
Bump
@Anonymous wrote:Bump
I would agree. You might get approved though. It is NFCU after all
I found out first hand. Today I applied. Here is the link: http://ficoforums.myfico.com/t5/Credit-Card-Approvals/Jumped-on-NFCU-bandwagon-15K-starting-limit/td...
I just got approved at the end of December with 90%+ utilization and was given a 24k SL
Scores are in the mid 600's
I have a long history with them
I also have 150K+ annual income.
@BundiFan wrote:I just got approved at the end of December with 90%+ utilization and was given a 24k SL
Scores are in the mid 600's
I have a long history with them
I also have 150K+ annual income.
Awesome!!
No lender "likes" high utilization. The higher the utilization, the higher the risk you are as you could lose your source of income (job, etc.) at any given moment and not be able to pay back that debt.
While some lenders may be slightly more forgiving of higher utilization than others, there are none that prefer it. If you apply for a product when you're at 50% utilization verses applying for that same product when you're at 20% utilization, all other things being equal, the profile at 20% utilization is going to be approved at better terms that the profile at 50% utilization.