topic Re: Does Penfed look at checking assets when determining credit card limits ? in Credit Cards

Does Penfed look at checking assets when determining credit card limits ?

Andy77 — Wed, 02 Mar 2016 18:10:21 GMT

I was thinking of depositing about 150k into my checking account with Penfed. Does anyone know if they take into account the cash in their accounts in determining cc limits, or do they just use your fico score and history ?

Thank you

Re: Does Penfed look at checking assets when determining credit card limits ?

FinStar — Wed, 02 Mar 2016 19:04:12 GMT

AFAIK, I don't believe that's taken into account from the get-go. If denied, perhaps during the appeal process *maybe* they can consider your depository relationship, yet I had no prior banking realtionship with PenFed (until recently) and the 2 CCs I was approved for last year were high SLs.

Re: Does Penfed look at checking assets when determining credit card limits ?

Anonymous — Wed, 02 Mar 2016 19:20:17 GMT

An alternative you might consider is Amex. Amex does take assets into account in determining CLs, and you can keep the assets somewhere else.

0.50% is great for a checking account, but there are many liquid savings accounts that offer a higher return.

If you just want to keep the cash there briefly to get some nice CLs before writing a big check or moving it somewhere else, then I don't know if it will work.

Re: Does Penfed look at checking assets when determining credit card limits ?

Gmood1 — Wed, 02 Mar 2016 19:29:53 GMT

I'd definitely consider higher yield checking and savings accounts. Some offer 2,3,4% .

Re: Does Penfed look at checking assets when determining credit card limits ?

Anonymous — Wed, 02 Mar 2016 21:01:25 GMT

150k in a regular checking is a waste. Even if you had to open up a few, i see most banks do 2% up to 10 or 25k. Some of them require 12 or 13 debit swipes to get this rate, not sure if that would apply to each account. Just FYI.

Also depending upon your age, they have some insane deals on life insurance. Paid up funerals. Tax free, no age limits, you can hand over $100k and when you die you get $150k to go the persons or charities of your choosing.

May I ask why you have that much money siting liquid when it could be making you more money elsewhere? Or is this 150k a drop in the bucket to your millions and doesnt matter?

Re: Does Penfed look at checking assets when determining credit card limits ?

Gmood1 — Thu, 03 Mar 2016 16:50:28 GMT

Right now Xcel FCU is giving 2.01% up to $50,000 on Kasasa Cash rewards account. It can be linked to a Kasasa saver account that generates 1.0% up to $15,000. All you need to do is 12 debit transactions a month and enroll in e-statements.

Re: Does Penfed look at checking assets when determining credit card limits ?

Anonymous — Thu, 03 Mar 2016 16:45:14 GMT

Yes they do consider deposit assets. As do ALL credit unions. Most CUs consider deposits or other collateral (car, boat, house) to be "cross-collateral" against a credit card. And as such credit card debt is considered a "loan" to a CU and they will use any means to get unpaid debt back - including taking it out of your deposit accounts. This is generally why it is more difficult to get a CU credit card and why they often have more rewards - less fees. Read your fine print.

That said - depositing $150K into an account that will yield .5% is really not a great rate.

Re: Does Penfed look at checking assets when determining credit card limits ?

JLK93 — Thu, 03 Mar 2016 23:55:54 GMT

@Andy77 wrote:

I was thinking of depositing about 150k into my checking account with Penfed. Does anyone know if they take into account the cash in their accounts in determining cc limits, or do they just use your fico score and history ?

Thank you

I believe Penfed does consider deposit assets when determining limits. I don't know how much it will affect the initial limit, but I think it is a sigificant factor in CLIs and if you are willing to recon. I believe that Penfed also considers the amount of spending put through a card.

Penfed is my highest limit and I believe my credit limit is a combination of high FICOs, spending and deposit assets.

My experience suggests that other credit unions also consider deposit assets when determining credit limits. And, you only have to leave the money in the account long enough to get the credit limit you desire. Then, you can put your money wherever you want.

Re: Does Penfed look at checking assets when determining credit card limits ?

Anonymous — Fri, 04 Mar 2016 00:06:56 GMT

@oilcan12 wrote:
@Andy77 wrote:

I was thinking of depositing about 150k into my checking account with Penfed. Does anyone know if they take into account the cash in their accounts in determining cc limits, or do they just use your fico score and history ?

Thank you

I believe Penfed does consider deposit assets when determining limits. I don't know how much it will affect the initial limit, but I think it is a sigificant factor in CLIs and if you are willing to recon. I believe that Penfed also considers the amount of spending put through a card.

Penfed is my highest limit and I believe my credit limit is a combination of high FICOs, spending and deposit assets.

My experience suggests that other credit unions also consider deposit assets when determining credit limits. And, you only have to leave the money in the account long enough to get the credit limit you desire. Then, you can put your money wherever you want.

Eh, don't think it really matters. While having a lot of money deposited in a CU may help convince them to give you an account, I doubt it affects the limit. I received a $30K card with $50 in my account as have a lot of other people. I've also receive high limits with NFCU and NASA prior to having much in my accounts there. The biggest factors in setting your limit is your credit scores/credit file and existing card limits, not how much you have in their accounts.

Re: Does Penfed look at checking assets when determining credit card limits ?

FinStar — Fri, 04 Mar 2016 00:15:56 GMT

@Anonymous wrote:
@oilcan12 wrote:
@Andy77 wrote:

I was thinking of depositing about 150k into my checking account with Penfed. Does anyone know if they take into account the cash in their accounts in determining cc limits, or do they just use your fico score and history ?

Thank you

I believe Penfed does consider deposit assets when determining limits. I don't know how much it will affect the initial limit, but I think it is a sigificant factor in CLIs and if you are willing to recon. I believe that Penfed also considers the amount of spending put through a card.

Penfed is my highest limit and I believe my credit limit is a combination of high FICOs, spending and deposit assets.

My experience suggests that other credit unions also consider deposit assets when determining credit limits. And, you only have to leave the money in the account long enough to get the credit limit you desire. Then, you can put your money wherever you want.
Eh, don't think it really matters. While having a lot of money deposited in a CU may help convince them to give you an account, I doubt it affects the limit. I received a $30K card with $50 in my account as have a lot of other people. I've also receive high limits with NFCU and NASA prior to having much in my accounts there. The biggest factors in setting your limit is your credit scores/credit file and existing card limits, not how much you have in their accounts.

I agree with Irish. Discretionary review can leverage a judgemental approval, but not always - it is still an unsecured CC at the end of the day. NASA approved $30K without any depository relationship during the initial membership frenzy. UNFCU approved $70K, and trust me, not much there in deposits either. PenFed has close to $50K in CLs and just recently opened a checking account with them last month (had the 1st CC for over a year). WPFCU, $30K on the spot before I could even say Hi to the UW. In my favor, in most cases, were POI (at least for UNFCU and a couple other CUs), FICO scores, CR profile and existing tradelines - not deposits or investments.

Re: Does Penfed look at checking assets when determining credit card limits ?

Anonymous — Fri, 04 Mar 2016 00:18:05 GMT

@FinStar wrote:
@Anonymous wrote:
@oilcan12 wrote:
@Andy77 wrote:

I was thinking of depositing about 150k into my checking account with Penfed. Does anyone know if they take into account the cash in their accounts in determining cc limits, or do they just use your fico score and history ?

Thank you

I believe Penfed does consider deposit assets when determining limits. I don't know how much it will affect the initial limit, but I think it is a sigificant factor in CLIs and if you are willing to recon. I believe that Penfed also considers the amount of spending put through a card.

Penfed is my highest limit and I believe my credit limit is a combination of high FICOs, spending and deposit assets.

My experience suggests that other credit unions also consider deposit assets when determining credit limits. And, you only have to leave the money in the account long enough to get the credit limit you desire. Then, you can put your money wherever you want.
Eh, don't think it really matters. While having a lot of money deposited in a CU may help convince them to give you an account, I doubt it affects the limit. I received a $30K card with $50 in my account as have a lot of other people. I've also receive high limits with NFCU and NASA prior to having much in my accounts there. The biggest factors in setting your limit is your credit scores/credit file and existing card limits, not how much you have in their accounts.
I agree with Irish. Discretionary review can leverage a judgemental approval, but not always - it is still an unsecured CC at the end of the day. NASA approved $30K without any depository relationship during the initial membership frenzy. UNFCU approved $70K, and trust me, not much there in deposits either. PenFed has close to $50K in CLs and just recently opened a checking account with them last month (had the 1st CC for over a year). WPFCU, $30K on the spot before I could even say Hi to the UW. In my favor, in most cases, were POI (at least for UNFCU and a couple other CUs), FICO scores, CR profile and existing tradelines - not deposits or investments.

Still blows my mind when I see that.

Re: Does Penfed look at checking assets when determining credit card limits ?

FinStar — Fri, 04 Mar 2016 00:22:01 GMT

@Anonymous wrote:
@FinStar wrote:
@Anonymous wrote:
@oilcan12 wrote:
@Andy77 wrote:

I was thinking of depositing about 150k into my checking account with Penfed. Does anyone know if they take into account the cash in their accounts in determining cc limits, or do they just use your fico score and history ?

Thank you

I believe Penfed does consider deposit assets when determining limits. I don't know how much it will affect the initial limit, but I think it is a sigificant factor in CLIs and if you are willing to recon. I believe that Penfed also considers the amount of spending put through a card.

Penfed is my highest limit and I believe my credit limit is a combination of high FICOs, spending and deposit assets.

My experience suggests that other credit unions also consider deposit assets when determining credit limits. And, you only have to leave the money in the account long enough to get the credit limit you desire. Then, you can put your money wherever you want.
Eh, don't think it really matters. While having a lot of money deposited in a CU may help convince them to give you an account, I doubt it affects the limit. I received a $30K card with $50 in my account as have a lot of other people. I've also receive high limits with NFCU and NASA prior to having much in my accounts there. The biggest factors in setting your limit is your credit scores/credit file and existing card limits, not how much you have in their accounts.
I agree with Irish. Discretionary review can leverage a judgemental approval, but not always - it is still an unsecured CC at the end of the day. NASA approved $30K without any depository relationship during the initial membership frenzy. UNFCU approved $70K, and trust me, not much there in deposits either. PenFed has close to $50K in CLs and just recently opened a checking account with them last month (had the 1st CC for over a year). WPFCU, $30K on the spot before I could even say Hi to the UW. In my favor, in most cases, were POI (at least for UNFCU and a couple other CUs), FICO scores, CR profile and existing tradelines - not deposits or investments.
Still blows my mind when I see that.

LOL - it blew MY mind that they could even say "yes" and approve that high (I think the max is $100K on that CC), yet all the back and forth, waiting... waiting, and UW convos + all the info they requested was all worth it for me