topic Re: Just signed up for PenFed, should I apply for a CC? in Credit Card Applications

Just signed up for PenFed, should I apply for a CC?

Dirge — Sat, 17 Nov 2018 04:22:36 GMT

I applied for a savings account and checking account, and the checking account got a hard pull even though I didn't request overdraft protection (but they said it would, so I was prepared). I should have waited until next week; I made a big payment on my credit card but it hasn't shown up yet, so my utilization is high, like 50% on it.

I bought the 3 scores from MyFico first, to see whether I should go for PenFed or DCU. My Fico 9 score was 691 (sadly, higher than my Fico 8 or 5). Is it even worth applying for the credit card? I kind of hate to waste the HP. But it would also be crushing to have them say "691, are you kidding???" It seems like from what I read here, even when I get my utilization down, they might use this HP for the next 30-90 days, give or take. It seems like it's either apply now or apply in a few months and get another HP showing lower utilization.

I really only got the savings and checking accounts to get into their system; my current checking account charges me $10 a month even with direct deposit, which is crazy, and my car is 16 years old, so I'm just getting things in order for the inevitable auto loan in my future. I don't really need the credit card. But even the highest rate on it would be lower than what I'm paying now (I usually PIF every month, this was just an aberration).

Thanks in advance for any thoughts.

Re: Just signed up for PenFed, should I apply for a CC?

KingPredator — Sat, 17 Nov 2018 05:07:17 GMT

Their Promise Card is the easiest to obtain. If concerned about getting approved I would apply for that one . But In order to give you a better idea you need to give us DP about your profile , any baddies , how many new accounts , inquiries , current line of credit etc.

Re: Just signed up for PenFed, should I apply for a CC?

Anonymous — Sat, 17 Nov 2018 06:27:16 GMT

2 HPs, one should disappear from your report some time but don't take my word. That's what I've observed on mine last year and besides, membership HP is good for 90 days (or if it is still 90 days).

Just like KingPredator said, go with Promise card, otherwise just wait 3 months later to show lower utilization.

Park at least $500 daily balance or a direct deposit of $500 in a statement cycle to avoid $10 fee. And since you said you don't really need a credit card from PenFed, don't apply especially if you're going to get an auto-loan some time. If you want, use PenFed for your auto-loan.

Re: Just signed up for PenFed, should I apply for a CC?

Gmood1 — Sat, 17 Nov 2018 09:49:16 GMT

Yes, it is worth applying for a card. Your score isn't considered bad. You've already taken the HP. Being denied the CC won't cost you anything.

Also Penfed encourages multiple banking relationships. Members applying for an auto loan and CC are the norm for them.
If you plan to use Penfed as a main bank with direct deposit. Get the 2% Cash Back card they offer or the Amex.
The lending criteria is the same for all their cards.

If you typically PIF, then you need some extra CL to help bring your utilization down. That will in turn bump your scores a little as well.

Re: Just signed up for PenFed, should I apply for a CC?

Anonymous — Sat, 17 Nov 2018 11:10:49 GMT

I agree with Gmood1.

Your scores are reasonable enough to apply for the Power Cash Rewards 2% cash back card. If you are denied you can recon and/or change your application to the Platinum card. The Promise card is the easiest one to get but you should initially aim for a Rewards card.

PenFed is easy to work with and the hard pull lasts anywhere from 30-90 days; you can apply for any number of products you want based on that pull. The worst they could say is that you don't qualify for that product right now.

Re: Just signed up for PenFed, should I apply for a CC?

Dirge — Sun, 18 Nov 2018 07:03:24 GMT

Thanks for all of the helpful replies. I do intend this to be my checking account, with my paycheck direct deposited. I didn't realize that there was more than one credit card (the Power Cash Rewards card is the one I can see at the top of the page). I understand from the huge Penfed thread that I won't see preapproved offers until I have some kind of credit product with them. But maybe that's a sign!

I have a BK7 for medical bills from 2012, AAoA is 11-something years, this HP was the first inquiry in two years, my other card is a Cap1 Quicksilver with a $6.5k limit. I closed Credit One recently. I have two store cards with no balance. I have a student loan that's marked as a collections account even though I haven't missed a payment for 4 years; it's my understanding that it will always be reflected as that, because it was marked due and payable back in 2014. That won't change, I just throw money at it every month and live with it. Salary is about $70k.

I'll take a look at their card choices, thanks very much!