topic Re: NFCU Denial Help! in Credit Card Applications

NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 05:55:35 GMT

I was feeling really confident applying with NFCU for their nRewards card a lot of people encouraged me to do so even though I wanted to remain in the garden I felt like they'd open me with a 500 CL and in time I could work my way up. I opened a savings account with them through my Dad who is a member a week ago and tonight was confident enough after a PFD was removed from all 3 reports to apply.

I applied for their NRewards card and for a flat out denial message saying sorry we'll mail you the reasoning in 5-7 days. I've really worked my ass off to pull my scores up and still I got denied. I called in to see why and they said they can't give me any info other than it was a HP from EQ (even though CK shows it being a HP from TU) and to check the letter in the mail for why I was denied.

Scores: EQ from CK 671 from FICO8 656
EX: 636 FICO8
TU from CK 659 from FICO8 651

Please help any advice I'm really sad right now

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 06:02:01 GMT

On my EQ report there's 2 collections

1 from 2011 for $1800
And
1 from 2013 for $1000

On my TU there's one additional collections

For $250 from 2013

I've seen and been told by multiple people they've been approved for NFCU credit with up to 5 collections showing. These are both really old collections so I thought they'd have less sting

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 07:40:51 GMT

Any chance of recon or why I was denied? There's been plenty of approvals with more derogs and lower scores so I don't understand.

nRewards Visa
Date: 10/06/2016
Subject: The status of your new nRewards Visa credit card is Declined.
Message:
Confirmation Number: XXXXXXXXXXX
Loan Type: nRewards Visa
Unfortunately, your request for credit has not met Navy Federal lending criteria for approval. You will receive additional notification by mail at your address of record within the next 5-7 normal mail delivery days which will provide an explanation for the decision. This letter will also explain the appeals process that you may initiate.

Re: NFCU Denial Help!

austinguy907 — Fri, 07 Oct 2016 08:15:34 GMT

Need to know specifically why they're denying you to put you in the right direction. Get the letter and maybe it will make more sense. Could be inquiries, debt level, etc. Should've listened to your gut on gardening instead of peer pressure

Off to the garden with you!

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 08:44:34 GMT

I think you will have to wait for the letter.

I have heard that credit unions, and especially NFCU, are very astute to debt to income ratios. Do you have loan balances for large amounts?

They may also be sensitive to inquiries, how many TransUnion inquiries do you have?

No sense in beating yourself up, use their other services if you wish and try again in 6 months.

Re: NFCU Denial Help!

creditguy — Fri, 07 Oct 2016 13:30:58 GMT

This is why YMMV is a prominent acronym around here. I was approved with scores lower than yours but that obviously means nothing or you'd have been approved. You have to look at your overall profile.

Navy doesn't have any particular item they look for to deny your app, but debt to income and utilization is a big deal. Another thing to consider is a bunch of new accounts. If you have new accounts, let them age for at least six months and build some history.

In the meantime wait for the letter and go from there. Try again at a later date and you'll be in a better position for approval and a higher SL. If you were hoping for a $500 SL, you must of thought you were borderline approval, let your profile grow and focus on higher SL's. Don't rack up a bunch of toy limit cards. I was approved on my second try with navy and I'm glad I waited because they were very generous whereas on my first try they probably wouldn't have been and I'd be stuck in low limit hell. Don't get sad, get motivated and try try again, best of luck.

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 13:58:11 GMT

As far as inquiries: at the time I had 7 inquiries on my report.

2 rental HP':ms for an apartment from 2014
1 HP from NFCU to open the savings account
4 from other creditors.

For some reason people use TU a lot I was hoping for an EQ pull as it's my best and I checked credit pulls database they use EQ a lot and even the CSR thought it was an EQ pull.

As for loans I have about $35k in deferred student loans they're in deferred status for the next 2 years. And I'm in school full time so my current income is about $1650 a month but I have no rent currently (living with family).

However I wasn't able to fit a few things on the application which are crucial.

1) My fiancée's income (about 28k) which I have access to regularly to pay bills if/when needed we Bank a lot together.
2) Grants and Scholarships in receiving.

I am allowed to use both of these but the application gave me nowehere to provide them.

"According to an amendment to the CARD Act, borrowers over 21 can list any income to which they have “reasonable expectation of access.” This broad definition includes:

Personal income
Income from a spouse or partner
Allowances and gifts
Trust fund distributions
Scholarships and grants
Retirement fund distributions
Social Security income"

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 14:02:20 GMT

Oh also another 2500 from eBay sales.

Assuming DTI is the issue what would you recommend would you say I should appeal and recon OR should I just wait 6 more months to a year (when I hit 700 with EQ and TU they never pull EX according to credit pulls database and that's my lowest so + for me).

Re: NFCU Denial Help!

baller4life — Fri, 07 Oct 2016 15:08:43 GMT

DTI is most likely the issue. Since you have taken the hp, I would send a secure message listing all addtl income you have access to. And ask them to reconsider using same hp.

Re: NFCU Denial Help!

Creditaddict — Fri, 07 Oct 2016 15:24:30 GMT

When supplying the income, you should just combine it all to provide either the yearly or monthly income that is yours and you have access too that is allowed under the statement you posted. Navy might eventually check and much of what you posted they won't accept but most other banks will never check that and some actually do accept it so just use it until asked or told differently...

I might go back and submit an app for a different card and use all the income and see.

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 15:34:18 GMT

@Anonymous wrote:
As far as inquiries: at the time I had 7 inquiries on my report.

2 rental HP':ms for an apartment from 2014
1 HP from NFCU to open the savings account
4 from other creditors.

For some reason people use TU a lot I was hoping for an EQ pull as it's my best and I checked credit pulls database they use EQ a lot and even the CSR thought it was an EQ pull.

As for loans I have about $35k in deferred student loans they're in deferred status for the next 2 years. And I'm in school full time so my current income is about $1650 a month but I have no rent currently (living with family).

@humuhumunukunukuapua'a wrote:

baller4 has provided wise advice here.

Also consider the fact that listing "0" for rent may have caused a slight red flag in their computer system. Yes, I know your rent is actually zero, but it wouldn't be the first time that putting zero in a category that shows your expenditures for housing has tripped an alogorithm (since zero usually doesn't make sense). I don't think it's the entire reason, but it may be one of several factors.

Are the student loans showing as deferred on your actual credit report? Status showing is also important since your income is fairly low.

Also, you are listing CreditKarma scores and CreditKarma scores are not accurate. Obtian your real credit scores from the credit bureaus directly and you will see what you have to work with.

Wait for the letter, and talk to Navy once you have the letter, but be prepared for them to possibly stand firm in their decision.

Work to bring your scores and income up, develop your credit history further, give it time, and apply again in 6 months.

You may also wish to start with the secured nRewards card to develop the relationship, as several others have done on the board. Good luck.

Re: NFCU Denial Help!

Creditaddict — Fri, 07 Oct 2016 15:26:02 GMT

Otherwise, you submit a secure message online stating you have been working very hard to clean up your past mistakes and you thought you had cleaned up enough and gotten your scores into the 600 and wanted to continue that rebuild with a strong credit union and joined and applied with navy and was shocked to be instantly denied vs offered at least a smaller starting limit card.

They will manual review it and probably answer in under an hour.

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 15:58:59 GMT

So I decided to send them a secure message through my account portal this is what I said,

"Hi,

This is in regards to the credit card application associated with this confirmation number XXXXXXXXX

I wanted to add a few things I was unable to add to my application I couldn't find proper space for it maybe it will help or maybe it will not.

My personal income is $1650 a month while I'm finishing school. Here's what I couldn't add to my application. In addition to that I receive about $15,000 annually in scholarships and grants that I'm able to use for bills or living expenses my fiancée and I live at my Dad's house for now so there is no rent we owe we're moving in a few months but for the time being I do pay nothing towards housing. My fiancée and I do most of our banking together and I am an authorized user on most of her credit/bankcards. She makes about $29,000 annually which I do have access to those funds should I need them. Additionally I do make a hobby of selling on eBay so far this year I've made $2,500 in sales with them.

I believe this information may provide additional insight into my financial situation that was not able to be provided on the application for lack of space.

To be honest with you when I was 18-20 I didn't know how to manage credit I was given multiple accounts and I mismanaged them I've cleaned up my credit a lot since then and have worked diligently to improve my scores to about 650. I was hoping I could get in with a starting limit of even just $500 and with time take care of that credit card hoping that with time the limit will slowly but surely increase.

The reason I bring up the additional income information is because of this:

According to an amendment to the CARD Act, borrowers over 21 can list any income to which they have “reasonable expectation of access.” This broad definition includes:

Personal income
Income from a spouse or partner
Allowances and gifts
Trust fund distributions
Scholarships and grants
Retirement fund distributions
Social Security income

Thank you for your time,

XXXX XXXX

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 15:59:53 GMT

Creditaddict - There was no specific message area for credit for me so I put it under other.

Is my message okay?

Re: NFCU Denial Help!

Creditaddict — Fri, 07 Oct 2016 16:02:32 GMT

@Anonymous wrote:
Creditaddict - There was no specific message area for credit for me so I put it under other.

Is my message okay?

sure

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 16:09:10 GMT

Would you have added something or left something out?

Re: NFCU Denial Help!

Creditaddict — Fri, 07 Oct 2016 16:18:16 GMT

My experience with navy once you get into verifying income if it is not a joint application they will not except anybody else's income and they will not except stated self-employment income like eBay and less it is on your taxes so that's why I said last is more and you should just include it and then later if it means verifying or they don't except it they will remove that portion them self.

But let's see what they say, maybe it didn't come down to income

Re: NFCU Denial Help!

Anonymous — Fri, 07 Oct 2016 16:22:00 GMT

Well a lot of people have said DTI is most important for them. 'My student loans show as closed because they're deferred but that might play a factor.

I included reasoning as to why I'm including the additional income information for grants/scholarships as well as my fiancée's income because of the CARD act which requires them to allow it...

As far as eBay I may or may not add it to taxes depends if I hit 5k in sales depends on how things go.

I guess we'all see! So you think they'll reply today?

Re: NFCU Denial Help!

Creditaddict — Fri, 07 Oct 2016 16:24:07 GMT

Yes, they are usually very quick

Re: NFCU Denial Help!

Anonymous — Sat, 08 Oct 2016 00:55:40 GMT

This is their response:

Thank you for your message. Upon review the application was declined due to excessive credit obligations in regards to income. If you did not complete the application income portion correctly or forgot to include your other income, please complete another application with all of the correct income information and resubmit. As long as you resubmit your corrected application within 30 days, it will not result in an additional CBR inquiry. If you have any other questions, please let us know.

What should I do?