Reply
Regular Contributor
axxy
Posts: 139
Registered: ‎10-11-2007
0

Penfed vs income

What if your income was $100,000 per year, 5 years ago, and is now $30,000, and you've had a $50,000-limit Penfed credit card all those years?  You naturally want to keep it, even though the $30,000 is not really enough to qualify for the $50,000.  But there is no rule that you have to tell Penfed about your reduction in income, is there?

 

And what if you're completely out of debt, with good credit scores, and want to apply for a mortgage, on a house whose payments you can easily afford, such as a cheap house in a rural area, 100,000 miles from the nearest big city?  Is there an implication that you're better off appying to some other lender than Penfed, because you don't want Penfed to know your income went down from $100,000 to $30,000?  Because, if they find out about your lower income, they might reduce your credit card limit from $50,000 to $5000?

 

Super Contributor
enharu
Posts: 7,002
Registered: ‎02-27-2013
0

Re: Penfed vs income

[ Edited ]

axxy wrote:

What if your income was $100,000 per year, 5 years ago, and is now $30,000, and you've had a $50,000-limit Penfed credit card all those years?  You naturally want to keep it, even though the $30,000 is not really enough to qualify for the $50,000.  But there is no rule that you have to tell Penfed about your reduction in income, is there?

 

And what if you're completely out of debt, with good credit scores, and want to apply for a mortgage, on a house whose payments you can easily afford, such as a cheap house in a rural area, 100,000 miles from the nearest big city?  Is there an implication that you're better off appying to some other lender than Penfed, because you don't want Penfed to know your income went down from $100,000 to $30,000?  Because, if they find out about your lower income, they might reduce your credit card limit from $50,000 to $5000?

 


As long as they are not asking you to update your income, you PROBABLY do not have to tell them. To be on the safe side, read the terms and conditions of the credit agreement as well. There might be a clause where you are supposed to inform them in the event of unemployment or any drastic changes regarding your income. Also, if they are to ever ask you to prove your income was indeed 100,000 5 years ago, you ought to be able to prove it. 

 

FYI, the circumference of the earth is approx 25k miles. "100,000 miles from the nearest big city" would be somewhere in space, approximately somewhere in between the moon and earth.

 

Anyhow, you ought to not get fixated with your CL. If they are going to CLD you, so be it. Your biggest priority should be getting the best and lowest APR rate possible for your mortage. Even a 0.1% difference in a 25year mortage can make a big difference in the amount of money you have to pay.

 

 

 

 

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
New Visitor
daniels013
Posts: 2
Registered: ‎05-27-2013
0

Re: Penfed vs income

If i am a debt free i will surely choose the fair offer for mortgage and can possibly not to get first a home instead save money in a yeard i can earn $100 ,000 i will surely make a list for my self and save money so that in case that i want to buy in a right time it will be more cheaper because you will pay it cash.

Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Penfed vs income

You can count on PenFed CLDing if they ever catch wind of your current income.  Penfed is one of the most conservative lenders out there so you can count on it.  I've seen thick 750 files denied on CC's because they opened something in the last six months.  They are uber conservative. 

Valued Contributor
thom02099
Posts: 1,326
Registered: ‎08-30-2011
0

Re: Penfed vs income


axxy wrote:

What if your income was $100,000 per year, 5 years ago, and is now $30,000, and you've had a $50,000-limit Penfed credit card all those years?  You naturally want to keep it, even though the $30,000 is not really enough to qualify for the $50,000.  But there is no rule that you have to tell Penfed about your reduction in income, is there?

 

And what if you're completely out of debt, with good credit scores, and want to apply for a mortgage, on a house whose payments you can easily afford, such as a cheap house in a rural area, 100,000 miles from the nearest big city?  Is there an implication that you're better off appying to some other lender than Penfed, because you don't want Penfed to know your income went down from $100,000 to $30,000?  Because, if they find out about your lower income, they might reduce your credit card limit from $50,000 to $5000?

 


Perfect example of "Don't Ask/Don't Tell" !  If they don't ask, I wouldn't tell, if I were you. 

 

For a mortgage, I'd use another source if I were you.  See above. 

 

100,000 from a big city??? That's really out in the boonies ! ! !

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 768 EQ = 828 TU = 834 - June/2014

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}