topic Re: Should I apply for Navy Federal CC? in Credit Card Applications

Should I apply for Navy Federal CC?

MrsF — Sun, 14 Jun 2020 23:29:44 GMT

Hi all!

I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months. Here are some stats:

Indigo card $300 CL (about a year old)

Capital One card $300 CL (1 month old)

Credit One card $400 CL (1 month old)

United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)

I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:

1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).

1 paid charge off scheduled to fall of later this year

4 medical collections (trying to get PFD)

1 collection that I'm disputing (process started)

1 credit card collection (trying to get PFD)

120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

Re: Should I apply for Navy Federal CC?

Anonymous — Sun, 14 Jun 2020 23:42:03 GMT

@MrsF wrote:
Hi all!
I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months. Here are some stats:

Indigo card $300 CL (about a year old)
Capital One card $300 CL (1 month old)
Credit One card $400 CL (1 month old)
United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)
I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:
1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).
1 paid charge off scheduled to fall of later this year
4 medical collections (trying to get PFD)
1 collection that I'm disputing (process started)
1 credit card collection (trying to get PFD)
120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

I'm sorry you got thr Credit one card. Those guys are bottom feeding fee seekers. Watch them like HAWKS.

Your scores are certainly in the realm of approval for NFCU. I'd say go for it - then when you get it, DROP the credit one card like a hot potato.

Once you get the card, maybe consider a share secured loan with NFCU, and then garden for a while.

Re: Should I apply for Navy Federal CC?

M_Smart007 — Sun, 14 Jun 2020 23:45:37 GMT

I say gopher it

Your highest score is TU .. that is what they will pull for a new card.

Good Luck my-fingers-are-crossed-smiley-emoticon.gif

Re: Should I apply for Navy Federal CC?

MrsF — Mon, 15 Jun 2020 00:49:14 GMT

Thanks for the feedback. How does the share secured loan work, take out a loan based on the amount in my savings account?

Re: Should I apply for Navy Federal CC?

MrsF — Mon, 15 Jun 2020 00:53:58 GMT

Oh I forgot to ask: are they pulling FICO 8 scores or the "credit card" scores that are stated on MyFICO?

Re: Should I apply for Navy Federal CC?

gingerflower — Mon, 15 Jun 2020 03:20:06 GMT

@MrsF I'd say go for it and if approved get rid of the credit one! Fingers crossed for you Goodluck 😇

Re: Should I apply for Navy Federal CC?

SouthJamaica — Mon, 15 Jun 2020 11:46:07 GMT

@MrsF wrote:
Hi all!
I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months. Here are some stats:

Indigo card $300 CL (about a year old)
Capital One card $300 CL (1 month old)
Credit One card $400 CL (1 month old)
United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)
I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:
1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).
1 paid charge off scheduled to fall of later this year
4 medical collections (trying to get PFD)
1 collection that I'm disputing (process started)
1 credit card collection (trying to get PFD)
120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

I think it would be preferable to wait, but I think you have a chance.

Re: Should I apply for Navy Federal CC?

Anonymous — Mon, 15 Jun 2020 12:07:31 GMT

@MrsF wrote:
Oh I forgot to ask: are they pulling FICO 8 scores or the "credit card" scores that are stated on MyFICO?

NFCU uses FICO 9. In MF, that's under "other scores"

read the first two posts here regarding the share secured loan:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

Re: Should I apply for Navy Federal CC?

recoveringfrombk7 — Mon, 15 Jun 2020 13:29:49 GMT

@Anonymous wrote:
@MrsF wrote:
Hi all!
I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months. Here are some stats:

Indigo card $300 CL (about a year old)
Capital One card $300 CL (1 month old)
Credit One card $400 CL (1 month old)
United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)
I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:
1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).
1 paid charge off scheduled to fall of later this year
4 medical collections (trying to get PFD)
1 collection that I'm disputing (process started)
1 credit card collection (trying to get PFD)
120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?
I'm sorry you got thr Credit one card. Those guys are bottom feeding fee seekers. Watch them like HAWKS.

Your scores are certainly in the realm of approval for NFCU. I'd say go for it - then when you get it, DROP the credit one card like a hot potato.

Once you get the card, maybe consider a share secured loan with NFCU, and then garden for a while.

There are worse than Credit One.

@MrsF

OP once you get 3 no AF cards make sure you cancel any cards that have AF/additional fees of any sort. I kept my Credit One for around 10 months and canceled it before paying an AF. Make sure when you do cancel these cards you request proof by mail and then also login to check your balance for 90 days after canceling to ensure there is no trailing interest/the online portal reflects the account closure.

Navy has been great to me post BK. They care mostly about DTI. Best of luck!

Re: Should I apply for Navy Federal CC?

Anonymous — Mon, 15 Jun 2020 16:39:15 GMT

@SouthJamaica wrote:
@MrsF wrote:
---

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?
I think it would be preferable to wait, but I think you have a chance.

The biggest reason I suggested she go ahead was to go ahead and "Start the clock" on aging the accounts. There is some evidence that for at least the first 12 months, you get hit with the "new accounts" penalty on FICO8 and maybe other score models. Doesn't matter whether it is five or one... obviously your AAoA will get hit worse with more accounts, but the Age of Youngest Account doesn't really care how many. new accounts you have. If she starts the clock now with a secured card and an SSL would let her get over that "new account" flag on her credit in about a year, presuming she starts gardening for a year once these are approved. If she waits, she resets that clock in a few months. It isn't a perfect argument. Definitely a judgement call.

I made a mistake last year and went for five or six in a short period, where I probably should have stopped once I had four good ones. For me, the correct advice was to quit while I was ahead. For someone in MrsF's position, perhaps ONE more and a good secured installment loan would be a good fit, then she can AGE those for a year, and be in a pretty darned good credit position a year from now.

Re: Should I apply for Navy Federal CC?

Anonymous — Mon, 15 Jun 2020 17:16:21 GMT

NFCU is a good credit union to start a relationship with. Seeing as you have a few recent cards I don't think they would deny you but if you want to go the safe route it would be best to get the secured card to start with. It'll graduate within 5 months minimum as long as your scores are up. I'm waiting for mine to graduate myself. They also have their own internal scoring they work with so it isn't just the Fico 9 scores.

Re: Should I apply for Navy Federal CC?

Girlzilla88 — Mon, 15 Jun 2020 18:42:51 GMT

@MrsF Even if they start you with a Secured Card it's a great place to get your foot in the door and build a relationship with! I do agree about getting rid of the Credit One Card like someone mentioned too (if you get an approval and especially if the amount is over the 400 to balance out losing that Limit)

Re: Should I apply for Navy Federal CC?

MrsF — Mon, 15 Jun 2020 19:22:13 GMT

Thanks for all the feedback everyone!

I applied online just now, and they said I can expect an answer within 24-48 hours. Seems to me that if I were approved, they would just say so. So.......guess I'll expect the tell-tale letter in the mail. ;-)

Re: Should I apply for Navy Federal CC?

Anonymous — Mon, 15 Jun 2020 19:37:36 GMT

@MrsF wrote:
Thanks for all the feedback everyone!

I applied online just now, and they said I can expect an answer within 24-48 hours. Seems to me that if I were approved, they would just say so. So.......guess I'll expect the tell-tale letter in the mail. ;-)

Nah, just manual review. Not terribly uncommon with Navy.

Re: Should I apply for Navy Federal CC?

MrsF — Mon, 15 Jun 2020 20:24:21 GMT

Firm no in the email just now. Offering me the secured card. Bummer.

Re: Should I apply for Navy Federal CC?

Tryinghardtoimprove — Mon, 15 Jun 2020 20:29:39 GMT

I say go for it. Your scores are better than mine and I opened a checking and savings account this am and applied for a CC this afternoon and was approved for an Amex $1000 CL.

I make 78,000. My Fico 9 TU 541 (according to Members 1st FCU), Fico 8 TU 601, Fico 8 EQ 601, Fico 8 EX 622. My credit utilization has been at 5% for the last 3 months, 3 total baddies, 1 CO, 2 collections that I'm making payments on.

I did have a secured card through Discover it for $700 for a year that switched to unsecured last month (5-2020) with a credit increase to $1500. I also have $300 milestone, $1,100 Fingerhut.

My payment history is excellent for the last 12 months. I say go for it. Good luck.

Re: Should I apply for Navy Federal CC?

Anonymous — Mon, 15 Jun 2020 20:31:14 GMT

@MrsF wrote:
Firm no in the email just now. Offering me the secured card. Bummer.

GET the secured card. GREAT place to start.

Re: Should I apply for Navy Federal CC?

MrsF — Mon, 15 Jun 2020 21:29:57 GMT

I don't have a problem with a secured card in principle, but...

I already have one through another bank. I need to check with them to see why it never matured to unsecured, but I don't want another secured card.

I also have three unsecured credit cards. Low limit bottom feeders, but unsecured. I think by the time 5+ months rolls around (the time I'm told it would take the secured card to mature), my credit profile will be much better anyway. Some, if not all, collections should be history. The paid charge off will be gone later this year.

Rather than putting money into an account for a secured card, I think that money will be better spent paying up/settling my remaining collections. Most are medical collections. I suspect the unpaid collections are the reason I was denied. My credit mix is good, utilization excellent, and I have on-time payments with for over a year (3 years if you don't count the late student loan payments in 2019).

Things have greatly imporoved. As I said in my original post, my scores have gone up 100+ points since around October 1019. So I'm gaining good ground. I just need to be patient and keep playing the game. The baddies are standing in my way, and I know it takes time to get them off (PFD, goodwill, disputes, time, etc).

I'm willing to wait until I qualify for a major unsecured card, and I don't think I'm that far away from it.

However...I can certainly listen to reason. Is there any good reason why I shouldn't wait until, say, January 2021 to reapply rather than getting a secured card? At least 3 baddies will be gone.

Re: Should I apply for Navy Federal CC?

Anonymous — Tue, 16 Jun 2020 00:00:19 GMT

@MrsF They denied me a month ago for a regular credit card. I got the secured and was preapproved for all of their cards today. I haven't gotten feedback on wether or not I should apply, but it doesn't seem to take long for them to offer "real" credit. Their secured is good in the fact that you do earn some rewards... 1% is better than nothing. I stopped using my cap1 for the most part.

ETA: I got the Self builder loan, but I would've gotten the SSL had I known better, or did more research beforehand.

Re: Should I apply for Navy Federal CC?

gingerflower — Tue, 16 Jun 2020 01:10:57 GMT

@MrsF Sorry to hear you were denied. Maybe reapply in a year hopefully you will get an approval.