topic Re: Penfed Credit Union in Credit Card Applications

Penfed Credit Union

Anonymous — Wed, 31 Jul 2019 01:24:41 GMT

I applied for a credit card with Penfed was turned down. I opened a checking account and they offered me overdraft line of credit. I was approved for $5,000. Is that overdraft line of credit worth it? I applied for their credit card first wondering why they can't approve that and can approve my overdraft line of credit.

Re: Penfed Credit Union

CreditInspired — Wed, 31 Jul 2019 01:34:55 GMT

@Anonymous wrote:
I applied for a credit card with Penfed was turned down. I opened a checking account and they offered me overdraft line of credit. I was approved for $5,000. Is that overdraft line of credit worth it? I applied for their credit card first wondering why they can't approve that and can approve my overdraft line of credit.

Congrats on the overdraft. I think the UW criteria for CCs and ODs are different, and that’s probably why an approval for one and not the other. OD is okay in a real emergency; but the problem with an OD is that there’s no grace period like a CC so interest starts accumulating immediately, unlike the 25 days on a CC.

Re: Penfed Credit Union

Anonymous — Thu, 01 Aug 2019 23:08:59 GMT

@CreditInspired wrote:
@Anonymous wrote:
I applied for a credit card with Penfed was turned down. I opened a checking account and they offered me overdraft line of credit. I was approved for $5,000. Is that overdraft line of credit worth it? I applied for their credit card first wondering why they can't approve that and can approve my overdraft line of credit.
Congrats on the overdraft. I think the UW criteria for CCs and ODs are different, and that’s probably why an approval for one and not the other. OD is okay in a real emergency; but the problem with an OD is that there’s no grace period like a CC so interest starts accumulating immediately, unlike the 25 days on a CC.

Thank you for detailed answer.

Re: Penfed Credit Union

CreditInspired — Thu, 01 Aug 2019 23:42:29 GMT

You’re welcome.