topic Unexpected NFCU Denial... Recon help? in Credit Card Applications

Unexpected NFCU Denial... Recon help?

Anonymous — Sat, 05 Aug 2017 20:51:14 GMT

Hi everyone I applied to a cash rewards visa and it was sent to review, they then asked for poi and I sent it in. The next day they denied me. I was very surprised because there were no discrepancies with my poi I even called and checked and they corroborated that there was no issue with my poi and that it matched the income I listed on the app. I have direct deposit for half my income ($2500/month) into the navy checking account since April to show that I wanted to build a relationship. I received the letter today and the only reason for denial is "limited credit experience." Here is a bit of my credit profile:

TU FICO 08: 698

AAOA: 3y3m

Accounts: 5 installment (4 student 1 auto), 4 revolving (cap1 quicksilver opened January, BOFA opened January, Overstock store card opened February, AMEX charge card AU opened December 2016)

Utilization: 5%

Inquiries: 4 - 2 from navy for membership and cc, 1 for BofA cli, and 1 for cap1 cc.

Derogs: Charge off paid in full ($840) 10 months since payment.

No late payments on any open accounts only on the charge off. I have no idea how to appeal this. Yes my oldest open cc account is 7 months old but I've done a lot to rebuild my credit since the charge off. How should I approach this?

Re: Unexpected NFCU Denial... Recon help?

Meanmchine — Sat, 05 Aug 2017 20:58:52 GMT

None of your revolvers are a year old. Try again after New Years

Sorry to hear about your denial

Re: Unexpected NFCU Denial... Recon help?

Anonymous — Sat, 05 Aug 2017 23:17:51 GMT

So you don't think that's something i can appeal?? I've seen them give cards to people with far riskier profiles

Re: Unexpected NFCU Denial... Recon help?

AverageJoesCredit — Sat, 05 Aug 2017 23:23:32 GMT

The problem probably isnt your overall profile. Navy is very good at forgiving people with baddies and such, its just if all your cards are from this year, thats probably why they are denying. I like the suggestion to wait til you have a solid year. You can still try to recon and plead your case, you never know, but theyll probably stick to their guns so to speak.

Re: Unexpected NFCU Denial... Recon help?

Meanmchine — Sat, 05 Aug 2017 23:29:23 GMT

I have no idea what NFCU is like. Im just matching their denial reasons against your current credit profile. If you do try to recon this

stress how reliable you are despited your short history. The "Ive seen you approve worse people" recon rationale doesnt work.

Keep us posted on what you do

Re: Unexpected NFCU Denial... Recon help?

AverageJoesCredit — Sun, 06 Aug 2017 01:29:20 GMT

+100 MM on the " ive seen you approve wose people" line. Not good to throw that can of worms at a tiger shark. Unfortunately, its hard to compare ones profile to another as there will always be some difference that may not show up on the stat sheet

Re: Unexpected NFCU Denial... Recon help?

Anonymous — Sun, 06 Aug 2017 01:32:38 GMT

Oh yeah I completely agree I was never going to use that in my appeal! That was just part of my internal dialogue when I was denied. I was hoping that the direct deposit would garner some trust from them though

Re: Unexpected NFCU Denial... Recon help?

Anonymous — Tue, 08 Aug 2017 21:42:06 GMT

This is the difference between how a lay person might 'see' RISK and how UWer evaluates risk

Lay person 'sees' a 'bad' profile and a middling score
UW sees a former payer making a possible 'come-BACK'

One profile, again is seen has a profile that HAS paid in past, has a history of paying, maybe hit a bad patch but now their BACK in the game.

That's DIFFERENT from a profile with 3 TL barely into 6-7 billing cycles and even the AU hasn't cut 10 bills yet... there's nothing to hang a hat on that said profile a successfully JUGGLE 3,4 and possibly MY 5th account w/o a hitch

So let's just SEE how things go

Funny thing is the same UW would have likely approved the same profile IF it were the 2nd or 3rd TL but it complicated when it looks like a NEWBIE is just piling on a bunch of TLs....who knows WHAT will happen?

This is no big deal...think college at a point an advisor might tell a newer student... let's SLOW it down and deal with the courses you've already signed up for, ya got plenty

Whereas later in that student's career the same advisor might sign-off on overloading because there is EXPERIENCE and history in the file.

Let on grass grow under the feet on what ya have now and you'll be fine!

Re: Unexpected NFCU Denial... Recon help?

CorporalAv — Wed, 09 Aug 2017 13:38:34 GMT

I feel like with NFCU it is sometimes a crapshoot. I wish you the best on your next app with them, never lose hope

Re: Unexpected NFCU Denial... Recon help?

Anonymous — Thu, 10 Aug 2017 01:16:44 GMT

@Anonymous wrote:
This is the difference between how a lay person might 'see' RISK and how UWer evaluates risk

Lay person 'sees' a 'bad' profile and a middling score
UW sees a former payer making a possible 'come-BACK'

One profile, again is seen has a profile that HAS paid in past, has a history of paying, maybe hit a bad patch but now their BACK in the game.

That's DIFFERENT from a profile with 3 TL barely into 6-7 billing cycles and even the AU hasn't cut 10 bills yet... there's nothing to hang a hat on that said profile a successfully JUGGLE 3,4 and possibly MY 5th account w/o a hitch

So let's just SEE how things go

Funny thing is the same UW would have likely approved the same profile IF it were the 2nd or 3rd TL but it complicated when it looks like a NEWBIE is just piling on a bunch of TLs....who knows WHAT will happen?

This is no big deal...think college at a point an advisor might tell a newer student... let's SLOW it down and deal with the courses you've already signed up for, ya got plenty

Whereas later in that student's career the same advisor might sign-off on overloading because there is EXPERIENCE and history in the file.

Let on grass grow under the feet on what ya have now and you'll be fine!

That sounds pretty accurate.

Re: Unexpected NFCU Denial... Recon help?

Kenny — Thu, 10 Aug 2017 01:22:01 GMT

You can always just send a message asking for a low level amount approval and a chance to prove yourself worthy.

Re: Unexpected NFCU Denial... Recon help?

Anonymous — Thu, 10 Aug 2017 18:23:21 GMT

I hear what you're saying @Kenny but c'mon when is enough, enough?

The UW said the profile has 'limited' experience and that's just true...there 4 brand new accounts, all well under a year old....

How many brand new accounts is prudent to 'see' what's, what

I know everyone is in a hurry and 6 months 'seems' like an eternity but it isn't....

Rebuilders pushing for 5th and 6th CCs within 6-7 total months of history are asking for someone to pump the brakes, because they are running too fast and looking RISKY, that's just the way any prudent fair financial person has no choice but to see it.

Again, no indictment just a "chill out" let's see you juggle the plates you already have in the air...

Aging a few accounts awhile also benefits the offers, rates and terms that the account holder is offered... getting stuck with 5 or 6 Scarlett Letter low level entry TLs might keep a person in the bush leagues

Whereas spacing a few of those approvals, so that one is approved later in the game with better scores and a thicker file garners better jump in points of entry.
*Not true with all lenders but we know it's true with several
Just another point to consider, when over applying

Re: Unexpected NFCU Denial... Recon help?

Anonymous — Thu, 10 Aug 2017 22:38:55 GMT

I had an unexpected denial last weekend. I applied for the Platinum to take advantage of the BT offer. Instantly declined.

I have had my Gorewards and CLOC for 10 months. Never carry a balance and always pay before statement cut date. Squeaky clean files and only 4% uti. I keep 10k in their money market and have checking and savings.

Seems like I'm at their internal limit.

So I applied for Penfed Power Cash and instantly approved for a baby limit of $11,000.00.

I was a bit disappointed with NFCU declining me, but I'm grateful they have extended $42,100.00 in credit between the CLOC and gorewards.

Re: Unexpected NFCU Denial... Recon help?

Kenny — Fri, 11 Aug 2017 14:11:20 GMT

@Anonymous wrote:
@I hear what you're saying @Kenny but c'mon when is enough, enough?

The UW said the profile has 'limited' experience and that's just true...there 4 brand new accounts, all well under a year old....

How many brand new accounts is prudent to 'see' what's, what

I know everyone is in a hurry and 6 months 'seems' like an eternity but it isn't....

Rebuilders pushing for 5th and 6th CCs within 6-7 total months of history are asking for someone to pump the brakes, because they are running too fast and looking RISKY, that's just the way any prudent fair financial person has no choice but to see it.

Again, no indictment just a "chill out" let's see you juggle the plates you already have in the air...

Aging a few accounts awhile also benefits the offers, rates and terms that the account holder is offered... getting stuck with 5 or 6 Scarlett Letter low level entry TLs might keep a person in the bush leagues

Whereas spacing a few of those approvals, so that one is approved later in the game with better scores and a thicker file garners better jump in points of entry.
*Not true with all lenders but we know it's true with several
Just another point to consider, when over applying

I can definitely understand where you're coming from in this statement. My sentiment is that if the OP is simply wanting this as there last card before they are closing up shop to garden for a while and grow things, then it's worth a shot via a secured message. But, I also agree with what you've said, as well. It all depends on what your goals are at the moment in time you're currently in. That low SL card they have with navy now if they approve them, will easily turn into a very high level card with adequate income, so I don't necessarily think that keeps the OP stuck at the low starting line. Again, it's all about the current credit goals/needs a person has in mind.

Re: Unexpected NFCU Denial... Recon help?

Anonymous — Mon, 14 Aug 2017 05:02:44 GMT

I'm with you @Kenny

I'm just sharing 1) How a lender in that 5th or 6th position might see the applier...of course ppl only see from what they WANT...I was just explaining my a UW POV what the thinking may be

Also, my concern was less about a low SL, of course the number can grow...but more about getting LABELED the 'risky' interest rate profile and many times, again once you have that Scarlett Letter THAT'S stuck with your internal profile...

We see this with institutions all the time, where if you're approved as a 'C' rated file that's the track you're on, no matter that you actually might be an 'A' rated file 18 months later

IMO I see it both ways, however one takes chances when request half a dozen cards which really isn't necessary with 6-7 mo the of TOTAL credit history

Again just IMO more ppl will run into unnecessary issues trying to chase 5,6,7 TLs with a very short overall history...than had most would have had they just tended to the 3, maybe 4 TLs and let a little aging help them

Again, no absolutes here

It's like when does one have ONE too many?
There's never gonna be a consistent answer because it's a moving target..... enough is enough is a matter of opinion and unfortunately the other guy ( the UW) at said institution makes that decision and even that's a variable, like who won the 6th round😊

Re: Unexpected NFCU Denial... Recon help?

Lucky7z — Sun, 20 Aug 2017 01:31:08 GMT