topic Re: NFCU Secured Card Questions in Credit Cards

NFCU Secured Card Questions

itspnutbutterkellytime — Thu, 06 Apr 2017 22:15:31 GMT

I recently was approved for membership to NFCU. I applied for one of their cards right away but was denied. Should I go for the secured card to get my foot in the door? I'm hesitant to tie up $500 into a secured card but am willing to do it to establish a relationship with NFCU as I have heard great things.

When does the card usually graduate? Anything else I should know? Any help is much appreciated!!

Re: NFCU Secured Card Questions

Anonymous — Thu, 06 Apr 2017 22:27:54 GMT

I will tell you yes. Better yet, take out a $500 secured loan, then fund a $500 secured credit card with the loan proceeds. Pay off the loan (just set up auto payments), charge and pay off your credit card either over time but nothing less than 6 months. Both report to all three. The card will become unsecured when the credit is paid. Mine auto upgraded from 500 to 3000, then to 7000, then to 10000, etc. I feel it is the most frugal but calculated way to get in the door while still re-establishing. I actually did all mine over the phone and even asked if what I wanted to do was possible. She said she had never heard of it but yes, it was very possible and that she would recommend it next time. I think I actually learned it here. Two for the price of one and best $500 I ever spent. Just my .02

Re: NFCU Secured Card Questions

itspnutbutterkellytime — Thu, 06 Apr 2017 22:35:08 GMT

Thank you!! How exactly does that secure loan work?

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card?

Re: NFCU Secured Card Questions

UncleB — Fri, 07 Apr 2017 06:38:30 GMT

@itspnutbutterkellytime wrote:
Thank you!! How exactly does that secure loan work?

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card?

The secured credit card and secured loan are really two different topics.

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's. You can find loads of information on that in @Anonymous's fantastic thread here: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines. I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.

Re: NFCU Secured Card Questions

Anonymous — Fri, 07 Apr 2017 17:32:53 GMT

Thanks for the kind word, UncleB!

Re: NFCU Secured Card Questions

enjoimorenow — Fri, 07 Apr 2017 19:36:25 GMT

@UncleB wrote:
@itspnutbutterkellytime wrote:
Thank you!! How exactly does that secure loan work?

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card?

The secured credit card and secured loan are really two different topics.

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's. You can find loads of information on that in @Anonymous's fantastic thread here: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines. I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.

Curious what terms are better at Alliant? From what I see, NFCU offers a lower rate as well as longer possible terms (up to 180 months).

Also, even if Alliant does offer better terms, if the OPs main concern is building a relationship with Navy, wouldn't it be more beneficial to have both products from the same bank to help build a history with them?

Re: NFCU Secured Card Questions

UncleB — Sat, 08 Apr 2017 15:47:51 GMT

@enjoimorenow wrote:
@UncleB wrote:
@itspnutbutterkellytime wrote:
Thank you!! How exactly does that secure loan work?

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card?

The secured credit card and secured loan are really two different topics.

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's. You can find loads of information on that in @Anonymous's fantastic thread here: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines. I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.
Curious what terms are better at Alliant? From what I see, NFCU offers a lower rate as well as longer possible terms (up to 180 months).

Also, even if Alliant does offer better terms, if the OPs main concern is building a relationship with Navy, wouldn't it be more beneficial to have both products from the same bank to help build a history with them?

Alliant is well-known for allowing you to pre-pay on installment loans without shortening the overall length of the loan (which can provide a FICO boost for people who don't have an installment loan reporting). That's what I meant by 'terms'... when used in this way rates aren't as important. The data on NFCU isn't as complete, and since things are always changing it's possible their installment loans can be used similarly. I'll defer to others for updated information on that.

I'm still hopeful for feedback on NFCU's secured card from people who have experience with it...

Re: NFCU Secured Card Questions

Anonymous — Sat, 08 Apr 2017 16:02:40 GMT

I opened a $500 secured card in September 2015. It didn't graduate until December 2016. When it graduated the limit was increased to $2000. I applied and was approved for a unsecured cashRewards card in October 2016. They started me with a $9500 limit and it's up to $18,500 now. When I was approved for the cashRewards I believe my fico was in the 590s range. Hope this is useful to you!

Re: NFCU Secured Card Questions

UncleB — Sat, 08 Apr 2017 16:06:25 GMT

@Anonymous wrote:
I opened a $500 secured card in September 2015. It didn't graduate until December 2016. When it graduated the limit was increased to $2000. I applied and was approved for a unsecured cashRewards card in October 2016. They started me with a $9500 limit and it's up to $18,500 now. When I was approved for the cashRewards I believe my fico was in the 590s range. Hope this is useful to you!

Thanks glb8... this is the type of info I was hoping for!

Re: NFCU Secured Card Questions

enjoimorenow — Sun, 09 Apr 2017 02:04:44 GMT

@UncleB wrote:
@enjoimorenow wrote:
@UncleB wrote:
@itspnutbutterkellytime wrote:
Thank you!! How exactly does that secure loan work?

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card?

The secured credit card and secured loan are really two different topics.

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's. You can find loads of information on that in @Anonymous's fantastic thread here: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines. I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.
Curious what terms are better at Alliant? From what I see, NFCU offers a lower rate as well as longer possible terms (up to 180 months).

Also, even if Alliant does offer better terms, if the OPs main concern is building a relationship with Navy, wouldn't it be more beneficial to have both products from the same bank to help build a history with them?
Alliant is well-known for allowing you to pre-pay on installment loans without shortening the overall length of the loan (which can provide a FICO boost for people who don't have an installment loan reporting). That's what I meant by 'terms'... when used in this way rates aren't as important. The data on NFCU isn't as complete, and since things are always changing it's possible their installment loans can be used similarly. I'll defer to others for updated information on that.

I'm still hopeful for feedback on NFCU's secured card from people who have experience with it...

Ahh, I understand....

FWIW I have a secured loan with NFCU and I made several payments on it in the first month so it shows next payment as due 6/15.

I did make 3 different payments on it though in one month, and not a lump sum payment 3x the amount due, so not sure if that makes a difference.

I haven't had my secured card with them for a whole month yet so don't have much info on it yet. I do like that it will let me schedule and make payments for any amount at any time, which is nice compared to capital one where I would have to wait several days for transactions to clear before it would let me schedule a payment.

Re: NFCU Secured Card Questions

itspnutbutterkellytime — Mon, 10 Apr 2017 16:36:22 GMT

Thank you all for the information and responses! I think I will go ahead and do the secured loan with Alliant and then open a secured card with NFCU. They seem to be very generous once a relationship is established!

Re: NFCU Secured Card Questions

Sandman771 — Fri, 19 May 2017 15:11:40 GMT

In order to do the secured card with NFCU is a HP required? I already have an unsecured, but I was going to go the secured route and add my daughter as an AU in order for her to have something in case of an emergency. TIA

Re: NFCU Secured Card Questions

enjoimorenow — Fri, 19 May 2017 16:19:44 GMT

yes, it is an HP on the secured card in order for them to determine what APR you will receive.

If you don't want an HP you can easily add her as an AU to your existing card and wouldn't have to tie the money up in order to secure the card!

Re: NFCU Secured Card Questions

Sandman771 — Fri, 19 May 2017 16:25:34 GMT

LOL I was trying to limit my exposure. no seriously she is a great kid, so I'm not worried. We will wait and see what happens when I leave the gardening business to others in a few months.

Re: NFCU Secured Card Questions

Anonymous — Fri, 19 May 2017 16:30:37 GMT

@Sandman771 wrote:
LOL I was trying to limit my exposure. no seriously she is a great kid, so I'm not worried. We will wait and see what happens when I leave the gardening business to others in a few months.

I believe NFCU will allow you to give your AU a max CL of your choosing...not be more than your current obviously. So, if you want to give her maybe a $500 CL for example. I believe I read that they do this! I'd call NFCU and ask. This will limit exposure for you!