topic Re: PenFed Conditional Approval in Credit Card Applications

PenFed Conditional Approval

rockstar53 — Thu, 30 May 2019 19:51:50 GMT

Hello forum,

I recently joined PenFed where I applied for the Pathfinder Amex Card as I would like to try and secure a no annual fee travel card given my credit over the last 2 years has rebound from 500 to 700 plus range after cleaning up errors on my reports, getting qualified and securing a new mortgage and steadily decreasing my credit utilization while growing my credit limits on active accounts some of which are 1-2 years old now.

Current CC utilization is 12%, average age of all open accounts is a little over 2 years.

The result of the credit card application, PenFed gave a conditional approval but when I inquired further it was an approval for a different card - Power Cash Visa Card with only a $1,200 CL at the highest interest rate.

When I called this morning and spoke with the CSR, I asked for reconsideration of a higher limit and lower interest rate given I have open CC accounts with CL mostly in the 9-14K range, she proceeded to discuss with the loan team.

In the end, I was not granted a higher limit or lower interest rate though my current EQ 9 score is 738 (as confirmed by PenFed). The reasons given for an alternate offer, too many recent inquiries and new accounts within the past 12 months. Given I am a new member they would like to establish more history with me before extending more credit. I was also advised that if I accept the offer in 6 months I can get re-evaluated for limit increase and terms.

Outside of getting the Amex card, I am not really looking to add additional credit cards in the next 12 -18 months.

With that said, I wanted to get some feedback from the community - would you accept the low limit PenFed card and try to build some history and then reapply for the Amex in 6 mos?

Re: PenFed Conditional Approval

Anonymous — Thu, 30 May 2019 20:22:01 GMT

Do you want it?

You can PC later on to the other version? (not sure as I dumped PF ages ago and never ventured into their credit products while with them)

Did you take the HP?

I've gotten familiar with other CU's in the past and currently still hold a stable of 4 CC's from different ones. There's a sliding scale based on score typically with a CU "loan" that tells you what you'll end up with for an APR.

for instance if your scores are 730+ you would be at the 8.49%, say 710-730 11.49% and so on. As your scores improve you can "re-evaluate" the current terms and slide down the rate scale. I eventually locked in 6.9% Fixed with a particular CU by doing this. From experience most don't show you the scale but, you know the range when you apply or look at the website.

Anyway.... so the delimma is whether to accept/keep and determine if it's going to be a long term fit. Like I said I have 4 accounts elsewhere that have been pretty decent over the past 12 years or so I've held them. They're not going to give you a baller limit but, they do make a good stable standby when you really need them for something that can't be PIF. Most of them offer $0 BT functions which comes in handy if you want to hit the SUB on another card but that new card doesn't offer 0% period.

My 2 highest that are open to anyone are JFCU and Consumers which are both over 25K/ea sitting at ~12% APR. The 6.9 is only 16.5K though for emergencies and they won't bump the limit since I don't "bank" with them any more with other open loans/shares.

Re: PenFed Conditional Approval

rockstar53 — Thu, 30 May 2019 20:44:08 GMT

@Anonymous wrote:
Do you want it? - Yes I am considering it at this point since they did a separate HP for the original application submitted, and true they typically do not have fees for BT if ever needed.
You can PC later on to the other version? (not sure as I dumped PF ages ago and never ventured into their credit products while with them) - I would be curious to know from others on the forum their experience with this or if this is even available at PF
Did you take the HP? Yes unfortunately, I would have expected it to just be one since I am a new customer

Re: PenFed Conditional Approval

Anonymous — Thu, 30 May 2019 20:49:40 GMT

Well, then I would just say YES to the CC and provide them with the docs they'll ask for to setup the new account.

If you want to diversify things a bit then check out JFCU / Consumers as they're both easy to work with / join.

Re: PenFed Conditional Approval

Hex — Fri, 31 May 2019 14:31:59 GMT

IMHO If you already have taken the hard pull you might as well take the card. I have a BK7 d/c’d 7/16. My first PenFed Card was a $2K PCR they approved in 7/17. I had no other baddies on my reports. They turned me down for CLI’s and additional cards at least 2 other times but in 4/18 they gave me a Gold Card with another $2K limit. In 6/18 I got a car loan with them at 1.99% (same HP as for the Gold Card but I think they are pulling more often now). Then in January when my dog was sick (I didn’t tell them my dog was sick) I decided I wanted to have a high limit CB card so I called for a CLI on my PCR. They gave me a $39K increase brining me to $41K on that card!!! When I realized that my PCR Card would never upgrade to a Signature Card because it was issued for <$5K I asked them to give me a new card instead of the CLI and they did. So now I have two $2K and one $39K Card with them. Some people on this forum think they are ultra conservative but I think if you stick with them it’s well worth it. When I first asked for CLI’s and new cards from them they would tell me they wanted to see a longer history of use and at least a years history with higher limit cards (which they would not give me but which Capital One had). Anyway my theory is if you are willing to put the time and effort into them (and waste a few hard pulls) it is ultimately worth it. I wonder if applying with them (even if they turn you down) doesn’t generate some sort of a record that shows them that you are serious about PenFed. It’s all conjecture but I’ve gotten a lot from my total of 5 HP’s from PenFed. A lot of people have that may HP’s with Navy and don’t think twice about it. Anyway something to think about.

Re: PenFed Conditional Approval

Anonymous — Fri, 31 May 2019 14:56:12 GMT

Very cool story @Hex. Thank you.

Re: PenFed Conditional Approval

Hex — Fri, 31 May 2019 15:23:35 GMT

Okay I’ll admit it- I love PenFed and here’s another reason why: My son started rebuilding in 8/17 and applied for a PenFed checking, savings and credit card. He actually got turned down for everything but a RESTRICTED savings account. I didn’t even know there was such a thing. He kept the savings (instead of getting angry and closing it), continued his rebuild and bided his time. In 6/18 after his scores had improved they approved him for a $500 promise card and a checking account and all restrictions were removed. In 1/19 they approved him for a $3.5K PCR Card and in 3/19 they gave him a CLI on his Promise card to $5K. So I think PenFed responds to improvement if you are willing to wait it out.

Re: PenFed Conditional Approval

rockstar53 — Fri, 31 May 2019 15:48:38 GMT

Thank you everyone for sharing your stories, sounds like I may have a similar story working with them to build history over time.

I decided this morning to move forward with their terms and accepted the card, thanks again.

Re: PenFed Conditional Approval

Hex — Fri, 31 May 2019 16:15:15 GMT

OP- The Power Cash Rewards Card pays 1.5% cash back on all purchases unless you are current/former military member or you have an Access America Checking account with them. In that case you get 2% back instead. I don’t think you mentioned if you were planning to open a checking account with them but if you are going to (and you don't have to) you should know that there is a steep $11 per month fee to have that account unless you do one of two things:
1) A direct deposit of at least $500 a month into the checking account ($125 per week works). Or
2) Maintain a balance of at least $500 in the checking account.

Happy to hear you accepted their offer.

Re: PenFed Conditional Approval

rockstar53 — Fri, 31 May 2019 16:13:38 GMT

@Hex, you mentioned after having the PCR card for awhile you realized your PCR Card would never get upgraded to a Signature Card because it was issued for <$5K I asked them to give me a new card instead of the CLI and they did. So basically you have 2 PCR cards now- $2K and $39K- did I read that correctly?!

Re: PenFed Conditional Approval

Hex — Fri, 31 May 2019 16:17:50 GMT

Yes I have two PCR cards and a gold card. My first PCR Card is a Platinum Card and my second one is a signature card.

Re: PenFed Conditional Approval

Hex — Fri, 31 May 2019 16:42:56 GMT

OP in case you don’t know there is a $100 bonus statement credit for the PCR Card if you spend 1.5K in first 90 days.
Also I should mention they can be slow to free up your available credit after you make a payment on the card. You get credited for the payment right away but it takes awhile for your available credit to be restored. It’s a pain in the neck but I’m pretty sure it only happens when you are new to PenFed. It didn’t happen with my 2nd or 3rd cards. Just be aware they have some odd limitations for all new members. I think it takes at least 30 days before you can use mobile deposit. After 3 or 6 months (I can’t remember which) I was able to deposit $5K a day into my checking with instant fund availability. Good things come to those who wait at PenFed but there is a lot of waiting.....

Re: PenFed Conditional Approval

rockstar53 — Fri, 31 May 2019 18:46:10 GMT

@Hex thanks for the additional commentary about PenFed. I also opened a checking acct with them as I don’t have any issue with keeping $500 balance or setting up direct deposit, still debating which as I did ask how long I had to setup DD before getting charged a monthly fee. I was told I have 90 days so I’m good there. Thinking more about this, it may be possible why they decided to offer a PCR card as a consolation prize to getting rejected for the Pathfinder Amex.

Good to know about the waiting for new customers, I will not plan move everything there so quickly!

Re: PenFed Conditional Approval

rockstar53 — Sun, 01 Dec 2019 04:38:51 GMT

So 6 months later to the date I called PenFed for a CLI and was approved right away for a $25k limit and they also dropped my interest rate to the lowest level- 11.74%. Also asked about signature card status and was told by two different reps that is automatic for anyone with a limit above $5k. Ordered a new card so I could take advantage of the tap to pay feature.

Re: PenFed Conditional Approval

AllZero — Sun, 01 Dec 2019 05:12:28 GMT

Congratulations on your massive CLI!

Re: PenFed Conditional Approval

Mv350 — Sun, 01 Dec 2019 09:07:04 GMT

Congrats on that increase! Thanks for the update!

Re: PenFed Conditional Approval

FinStar — Sun, 01 Dec 2019 18:20:13 GMT

Thanks for providing an update on your original post @rockstar53 and congrats on getting approved for the CLI and lower APR.

Locking this thread as you were eventually approved. Feel free to start a new approval thread in the Approvals forum if you would like to do so.