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Rebuilding Stage: Credit Card through Credit Union

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Anonymous
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Rebuilding Stage: Credit Card through Credit Union

Soooo, I will be getting a new car soon and have been hard at work on rebuilding my credit. I currently am waiting on everything negative to be removed as promised by PFD's and am wondering if I apply for a CC through my credit union what goes into their decision? My score should be decent when these last 4 negatives are removed but it won't be high by any means since I do not have any revolving TL's open. I only have my installment loans open (which have perfect payment history for the last 3 yrs.) So instead of trying to apply for cap, BOA, I have thought of applying for a credit card with my CU and letting it post a couple payments before applying fotrauto loan.

 

SO do crdit unions usually look at your bank statements to determine spending habits?? Im not horrible, I have about 4k saved up but I do use my card about 3-4 times a day which I know I shouldn't. I know most CC companies use your score, UTI, and debt to income, but I figure since CU's have more access to your history they will also look into your spending habits. If this is the case I will making lunch for myself everyday instead of ordering applebees everyday in the future lol. (which I should alteady do lol)

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Rebuilding Stage: Credit Card through Credit Union

I'd just go in (or call) and ask. They may have a secured card you can get, if you don't qualify for a regular card.

Message 2 of 5
Anonymous
Not applicable

Re: Rebuilding Stage: Credit Card through Credit Union

I don't know exactly how your CU works but I can share with you my experience. I opened a new savings and checking account with my local CU on 4/1/2015. The same day I decided to throw caution to the wind and apply for their Visa card as I really wanted another unsecured revolver to help me rebuild with no crazy fees. My TU FICO 08 score that day was 616. But to my dismay they used the FICO 04 classic version which had my score at 589. However, the banker allowed me to sit down with her and explain all of my baddies and I let her know that the majority of them were scheduled to be deleted or updated as PIF. After speaking with me about my personal situation, she said she would recommend to the underwriters that they approve me for the card. I was contacted about a week later for documents verifying my income and they also asked me to submit any documentation I had that showed I had paid the collections that I said I did. Once I sent those in, they called me to let me know I was approved for a Visa with a starting limit of $2000. Just last Friday, a little over a month later, they approved me for a CLI to $5000. I say all that to give you some encouragement and definitely recommend you app with your CU, but go to the bank and do it with a banker. I don't suspect I EVER would have gotten such humane treatment from a regular big bank. Also most, CU's still use the FICO 04 system from what I understand so be prepared in case you are apping based on your FICO 08 scores. Hope that is helpful! Smiley Happy

 


@Anonymous wrote:

Soooo, I will be getting a new car soon and have been hard at work on rebuilding my credit. I currently am waiting on everything negative to be removed as promised by PFD's and am wondering if I apply for a CC through my credit union what goes into their decision? My score should be decent when these last 4 negatives are removed but it won't be high by any means since I do not have any revolving TL's open. I only have my installment loans open (which have perfect payment history for the last 3 yrs.) So instead of trying to apply for cap, BOA, I have thought of applying for a credit card with my CU and letting it post a couple payments before applying fotrauto loan.

 

SO do crdit unions usually look at your bank statements to determine spending habits?? Im not horrible, I have about 4k saved up but I do use my card about 3-4 times a day which I know I shouldn't. I know most CC companies use your score, UTI, and debt to income, but I figure since CU's have more access to your history they will also look into your spending habits. If this is the case I will making lunch for myself everyday instead of ordering applebees everyday in the future lol. (which I should alteady do lol)


 

Message 3 of 5
Anonymous
Not applicable

Re: Rebuilding Stage: Credit Card through Credit Union

"I don't know exactly how your CU works but I can share with you my experience. I opened a new savings and checking account with my local CU on 4/1/2015. The same day I decided to throw caution to the wind and apply for their Visa card as I really wanted another unsecured revolver to help me rebuild with no crazy fees. My TU FICO 08 score that day was 616. But to my dismay they used the FICO 04 classic version which had my score at 589. However, the banker allowed me to sit down with her and explain all of my baddies and I let her know that the majority of them were scheduled to be deleted or updated as PIF. After speaking with me about my personal situation, she said she would recommend to the underwriters that they approve me for the card. I was contacted about a week later for documents verifying my income and they also asked me to submit any documentation I had that showed I had paid the collections that I said I did. Once I sent those in, they called me to let me know I was approved for a Visa with a starting limit of $2000. Just last Friday, a little over a month later, they approved me for a CLI to $5000. I say all that to give you some encouragement and definitely recommend you app with your CU, but go to the bank and do it with a banker. I don't suspect I EVER would have gotten such humane treatment from a regular big bank. Also most, CU's still use the FICO 04 system from what I understand so be prepared in case you are apping based on your FICO 08 scores. Hope that is helpful! :smileyhappy:"

 

That is very helpful info Thank You!! That gives me a big heads up on what to expect and I'll now make sure to pay attention to my fico 4. I was hoping they would pull my EQ Fico which is at 635 (EX 579 and TU 560) but Ill have to check my fico 4 out now. Im just going to wait another month in hope that my pfd removals actually delete hoping it will increase my score. I too would just rather wait the extra month and go for unsecured instead of starting with secured.

Message 4 of 5
TRC_WA
Senior Contributor

Re: Rebuilding Stage: Credit Card through Credit Union

My Ch 13 was discharged in May 2013.  My scores were around 630 across the board.

 

My CU BECU (4th largest US CU) told me I could have a secured card or come back in 6 months after establishing credit elsewhere. So I got some CapOne cards and came back in 6 months... they gave me $7k which is now $10k.

 

If you are fortunate enough to qualify for NFCU membership they give cards with huge limits out like candy to people with marginal credit scores... 

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 5 of 5
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