topic Re: NFCU Disappointment in Bankruptcy

NFCU Disappointment

Anonymous — Tue, 29 Oct 2019 15:34:11 GMT

Hello Everyone,

My story begins here.

I initially started my membership with NFCU back in 2011. Didn't fully utilize my account as USAA was my main bank at the time.

Fast forward to August 2019, reinstated my membership with full activity nice savings/checking (father is Army veteran), added my DH as a member as well. We have no other products with NFCU at this time.

We have an auto loan since Nov 2018 through Cap 1 at 12.9% (2 months ahead on payments) we've been itching to get refi'd since July. We have quite a few inquiries trying to get this accomplished (some approvals at nearly same rate, some denials). Everything else is great, no lates showing since 2015 on any report of ours. We have Cap 1 QS; Discover IT; Wayfair; cc charge accounts since BK's and all paid on time. Utilization currently at 27%. DTI defintely can't be an issue here.

Scores as of 10/28 (FICO 8): DH: EQ:688 TU 637 EX:676--Mine: EQ:656 TU:655 EXP: 641

He has BK7 discharged 3/2018

I have BK13 dismissed 2/2018

We decided last night to give NFCU a try and see if we could refi with them. 2017 model 22k miles (wanted 36-48 month term).

DH would be Primary & I secondary as it is on Cap 1 loan.

NOT!

Received the decline email this morning. I was in total awe!

Should I recon this? Do i call to do this or via secure messages?

Or should I wait for the explanation to come in the mail before attempting reconsideration?

What could be the reasoning for this?

Any & all info & guidance would be greatly appreciated.

Re: NFCU Disappointment

Anonymous — Tue, 29 Oct 2019 13:49:54 GMT

If I had to guess, the reason is a rather fresh BK on both yours and DH's reports. They're under 1 year old.

If I had to guess, you'll have little luck at a recon. I think you'll have to hold steady for now and revisit the refinance attempt down the road.

Re: NFCU Disappointment

Anonymous — Tue, 29 Oct 2019 14:04:42 GMT

@Anonymous wrote:
If I had to guess, the reason is a rather fresh BK on both yours and DH's reports. They're under 1 year old.

If I had to guess, you'll have little luck at a recon. I think you'll have to hold steady for now and revisit the refinance attempt down the road.

Wow!

They are 17 months DC'd right now.

Each will be 2 years DC'd in Feb & March 2020 respectively.

I read on the forums in my posts that 1 year post BK DC is the minimum.

Has that changed?

Re: NFCU Disappointment

Anonymous — Tue, 29 Oct 2019 14:56:09 GMT

Wow! Sorry, I glanced and made a mistake. Less than 2 years.

Wait for the letter and see what it says.

good day!

Re: NFCU Disappointment

Anonymous — Tue, 29 Oct 2019 16:03:38 GMT

Ok.

I called & got a supervisor within the dept.

Reviewed to see if anything incorrect or missing from inital application (would only verify my info, not DH).

He said they would like to appeal with "new information" coming in for reconsideration (ie: correction made on credit report etc).

Since the app was submitted yday, no noticable changes would have likely taken place.

He said he didn't have any additional info as to why it was denied except that it was "credit based".

What score/ credit details are they looking for?! Geez

Advised to wait for letter in mail for more details....

I will compare what they send as to why against my report & follow up from there I guess...

Re: NFCU Disappointment

VanderSnoot — Wed, 30 Oct 2019 23:59:23 GMT

Fingers crossed for you.

Re: NFCU Disappointment

Guyatthebeach — Thu, 31 Oct 2019 01:42:56 GMT

frugal23,

I'm sorry to hear that you got declined. Judging from what I have read and personally experienced myself with NFCU, they are tighting up their lending practices. I'm curious to see what the letter says.

By the way, was your ch13 BK discharged or dismissed?

Guyatthebeach

Re: NFCU Disappointment

Anonymous — Thu, 31 Oct 2019 01:49:50 GMT

dismissed, i was pondering conerting it to ch7, but realized no need to. I could payoff the my old debts with financial restructuring and aggressive credit rebuilding.

@Guyatthebeach wrote:
frugal23,

I'm sorry to hear that you got declined. Judging from what I have read and personally experienced myself with NFCU, they are tighting up their lending practices. I'm curious to see what the letter says.

By the way, was your ch13 BK discharged or dismissed?

Guyatthebeach

Re: NFCU Disappointment

Anonymous — Thu, 31 Oct 2019 06:03:00 GMT

I'm confused ... I assumed you converted from CH13 to CH7. If that is not the case, could you verify the status of your CH13 and CH7 respectively?

As far as NFCU's guidelines, as of about two years ago, a minimum of six months post-discharge rebuild was required for a loan. Rebuid is/was considered 3+ tradelines with at least 6 months of payment history.

NFCU also uses a custom score as a primary scoring method. This utilizes your FICO score (typically equifax for auto loans) as well as other factors. Assuming you have no derogatory accounts at Navy Federal, a common reason for a low custom score is a short period with your current employer (e.g. less than a year).

At this point we can only speculate the reasons for your denial. If you are unable to obtain them over the phone or online, then I would wait until you review the denial letter for advice on how to proceed.

Re: NFCU Disappointment

Anonymous — Thu, 31 Oct 2019 06:06:54 GMT

One other thought: If you have the cash to afford it, pay down your credit cards so your util ratio is less than 10%, and ensure the lower balances report before applying for an auto loan. This is so you have the highest FICO possible.

Re: NFCU Disappointment

Anonymous — Thu, 31 Oct 2019 13:16:28 GMT

@Anonymous wrote:
I'm confused ... I assumed you converted from CH13 to CH7. If that is not the case, could you verify the status of your CH13 and CH7 respectively?

As far as NFCU's guidelines, as of about two years ago, a minimum of six months post-discharge rebuild was required for a loan. Rebuid is/was considered 3+ tradelines with at least 6 months of payment history.

NFCU also uses a custom score as a primary scoring method. This utilizes your FICO score (typically equifax for auto loans) as well as other factors. Assuming you have no derogatory accounts at Navy Federal, a common reason for a low custom score is a short period with your current employer (e.g. less than a year).

At this point we can only speculate the reasons for your denial. If you are unable to obtain them over the phone or online, then I would wait until you review the denial letter for advice on how to proceed.

My husband was discharged from a ch7 in March 2018

I filed ch13 and it was dismissed in February 2018 (plan was to convert, however didn't need to anymore).Status shows on report as ch13 dismissed Feb 2018

My DH has been at his employer 4 years, I've been at mine 18 months now.

Both us have the 3 tradelines, but only 1 would meet the 6+ months payment history you speak of. *(could be the reason)*

Only checking/savings acct. No OD's or anything like that.

We will be paying down to the 10% or less over the next month as well to help since 29-30% over 2 cards no good.

Will move to the AZEO method (just learned of this here).

Thanks

Re: NFCU Disappointment

Anonymous — Sun, 03 Nov 2019 18:32:51 GMT

1 year is wrong, we refinanced our 12.9 cap auto as well and tried for nfcu... they gave us a pretty good offer for a 72 or 60 month loan and we were about 7 months post dc. We both do have ccs with them etc though

Re: NFCU Disappointment

Anonymous — Sun, 03 Nov 2019 18:36:36 GMT

I do wonder if that higher util is part of it as ours was at like 2 percent.

Also I've read a lot on lates of 120 days being A huge pain for the full 7 years. Any of those?

Re: NFCU Disappointment

Anonymous — Sun, 03 Nov 2019 23:14:25 GMT

@Anonymous wrote:
I do wonder if that higher util is part of it as ours was at like 2 percent.

Also I've read a lot on lates of 120 days being A huge pain for the full 7 years. Any of those?

The higher utilization could be the issue. We will be at 9% by the time of the next month statement cut.

There are no lates on either of our reports since 2015 (DH 1x 90+ late on Student loan in 2015).

The decline letter hasn't arrived just yet, still waiting.....

We went ahead and applied for a "joint" secured card with them ($400) to help things along.

I hated the idea o doing a secured card since we have no secured cards with anyone else, but hey, what else can I do, they're refi rates can't be beat (i tried) & thats the goal, to get out from under this 12.9% interest rate and get it paid off asap!

We plan to try the refi with them again once the card graduates or 6 months from now.

Re: NFCU Disappointment

Anonymous — Thu, 07 Nov 2019 14:37:33 GMT

....see post below

Re: NFCU Disappointment

Anonymous — Thu, 07 Nov 2019 14:35:44 GMT

UPDATE: (Thanks y'all for all your advice/info so far on this)....

PS: I also applied for their Visa Cash Rewards card (alone) and was denied; opened a secured card immediately after the denial.

I received that denial letter as well; said denied due to Collection Action or judgment

(I have no collection/judgment on any of my reports).

I sent a secured message asking for an appeal of the denial as that info was indeed incorrect & to take a second look.

Received a response to my message saying:

Thank you for your message. Because we take our members' requests seriously, we conducted a second review of your application. After careful consideration, we are pleased to inform you that your recent credit card application has been approved. Your new Visa Signature cashRewards card has been issued to your address of record and should be received within approximately seven to ten business days.

Your new credit limit is $5,000. If we can be of any further assistance, please let us know.

I/We received the denial letter(s) for the auto refinancing as well:

It says it was denied due to: Bankruptcy

(see siggy on when our Bk's were DC'd & DM'D)

The following additional info was also provided:

TU Score: 627 (me)/706 (DH) (says scores range from: 336-843)

Your Navy Federal Credit Score (internal scoring model): 293 (range:100-450)

*Key Factors for Me were:

040- Derogatory Public Record or Collection Filed

020-Length of time since derogatory public record/collection too short

014- Length of time accounts have been established

010- Ratio of revolving balances to credit limits too high (we were at 29-31% at time of app)

Number of recent inquiries on consumer Report (true; looking for companies to refi auto at lower rate)

*Key Factors for DH were:

038- Serious delinquency and public record or collection filed

020-Length of time since derogatory public record/collection too short

010- Ratio of revolving balances to credit limits too high (we were at 29-31% at time of app)

002- Level of delinquency on accounts (must be referring to 2015 student loan lates showing)

**Questions I have at this point:

So I guess being 18 months post BK is no longer the prerequisite. Shall I guess it's 24 months now?
Should I appeal the auto refi denial as well now since what they thought was a collection on my report ( for their cc app) was incorrect?

3. What do you think i should do with this "secured" card they approved & sent to me? Should I close it? Don't really need it now.

Re: NFCU Disappointment

Scupra — Thu, 07 Nov 2019 17:03:46 GMT

What kind of vehicle are we talking about here? Is the LTV favorable? BK is just the easiest thing to list on a denial, you will see the BK listed as a reason for the entire 7 years. Trying to have the auto loan looked at again sure couldn't hurt, always worth a try.

Re: NFCU Disappointment

Anonymous — Thu, 07 Nov 2019 17:52:56 GMT

@Scupra wrote:
What kind of vehicle are we talking about here? Is the LTV favorable? BK is just the easiest thing to list on a denial, you will see the BK listed as a reason for the entire 7 years. Trying to have the auto loan looked at again sure couldn't hurt, always worth a try.

Purchased vehicle last year: November 2018.

2017 Equinox; 23k miles (currently).

Loan is with Cap 1 at 12.9% at 60 months

We have been paying more than the monthly payment & on scedule for a 3 month early payoff.

The LTV is indeed favorable. We owe about $2,400 less than the value of the vehicle at this point.

Re: NFCU Disappointment

Guyatthebeach — Thu, 07 Nov 2019 18:33:41 GMT

To me that is a valid reason for a recon on the auto refi.

Guyatthebeach

Re: NFCU Disappointment

Anonymous — Wed, 13 Nov 2019 22:31:29 GMT

Bumping for responses in regards to the following questions:

**Questions I have at this point:

So I guess being 18 months post BK is no longer the prerequisite. Shall I guess it's 24 months now?
What do you think i should do with this "secured" card they approved & sent to me? Should I close it? Don't really need it now since they reversed decision on the cashRwards card (as mentioned above).
Will closing the secured card wreck my chances for the auto refi later on when i re-apply?
Can I close 2 of my lower CL cards now w/o much effect to my score? (want to close: Overstock & Mission Lane Visa (along with secured NFCU card) No acivity or balances on any of these cards. All opened in last 6 months. Doesn't lower my utilization much at all now.