topic Re: NFCU vs. Discover? in Credit Cards

NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 19:13:17 GMT

Hey, everyone!

I'm new to the forum, but I've been a long-time lurker. I'm currently debating between applying for a NFCU cashRewards card or a Discover it card.

I already did the pre-approval for Discover and was offered either the it or the Chrome card. However, I have read so much about NFCU and their generous limits. (I'm already a member).

So, which would you apply for and why? I have three inquiries, no collections, several late payments, and two charge-offs - both with $0 balances. So, essentially, no debt. I'm currently hovering in the mid-600s across the board, but I just paid off two cards, so I expect a little score boost once the new, lower utilizations report next week.

Thanks in advance!

(Re-post because I'm not sure where to ask this question...)

Re: NFCU vs. Discover?

Adkins — Mon, 19 Mar 2018 19:23:45 GMT

NFCU. They tend to be generous to rebuilders. Wait until your lower balances post to the CRAs and then apply.

Re: NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 19:38:58 GMT

NFCU is definitely more generous than most creditors and I love doing business with them, but I also really enjoy my Disover it card.

I'd say go for both honestly! Which navy card are you looking at?

Re: NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 19:42:01 GMT

Thanks! Ultimately, I'd like to get both at some point. I didn't want to go crazy with inquiries as we may be applying for a mortgage in the fall, and I already have three. I didn't know if it was better to do it at the same time or to start with NFCU and apply for Discover after my scores go up a bit (even though I was pre-approved already...)

I was thinking of applying for the green cashRewards from NFCU. Thoughts on this one?

Re: NFCU vs. Discover?

UpperNwGuy — Mon, 19 Mar 2018 19:42:11 GMT

You will earn 1.5% cash back on both the Navy card and the Discover card, but Discover will double your cash back at the end of the first year, making it effectively a 3% card for that first year.

Re: NFCU vs. Discover?

Adkins — Mon, 19 Mar 2018 19:52:08 GMT

@Anonymouswrote:
Thanks! Ultimately, I'd like to get both at some point. I didn't want to go crazy with inquiries as we may be applying for a mortgage in the fall, and I already have three. I didn't know if it was better to do it at the same time or to start with NFCU and apply for Discover after my scores go up a bit (even though I was pre-approved already...)

I was thinking of applying for the green cashRewards from NFCU. Thoughts on this one?

If you are planning on applying for a mortgage in THIS coming fall, I would NOT apply for a new credit card right now. I would not apply for any new credit, period. Do that AFTER you've closed and signed on the house! (And the keys are in your hand!)

Re: NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 19:57:07 GMT

@UpperNwGuywrote:
You will earn 1.5% cash back on both the Navy card and the Discover card, but Discover will double your cash back at the end of the first year, making it effectively a 3% card for that first year.

yeah the 1.5% rewards rates for the cashrewards get overshadowed by my other cards most of the time, but it's super easy to PC navy cards (except for the more rewards card)

It sounds like you're refering to the discover miles card and not the discover it (discover it has rotating 5% catagories that change every quarter) if youre debating between cashrewards and discover miles, I'd definitly go for cashrewards, mainly because they're not different in rewards and discover is not always excepted. Definitly take into consideration what adkins said tho

Re: NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 20:22:23 GMT

I figured since a mortgage was at least 6+ months this away, I'd be okay? I already had a pre-approval, but we decided to wait a while to build our down payment up rather than scramble to get funds together at the last minute.

While the mortgage timeline is flexible, I definitely don't want to wait too long to apply for anything...which is why I was thinking ONE out of Discover or NFCU for now. Or maybe I'm just confusing myself and making everything worse...

Re: NFCU vs. Discover?

Adkins — Mon, 19 Mar 2018 20:33:27 GMT

@Anonymouswrote:
I figured since a mortgage was at least 6+ months this away, I'd be okay? I already had a pre-approval, but we decided to wait a while to build our down payment up rather than scramble to get funds together at the last minute.

While the mortgage timeline is flexible, I definitely don't want to wait too long to apply for anything...which is why I was thinking ONE out of Discover or NFCU for now. Or maybe I'm just confusing myself and making everything worse...

Quite a few lenders like no new credit a year before you apply. Plus if you apply for new credit, your pre-approval might not be valid anymore because your credit history will have changed. I really suggest talking to your underwriter about applying for new credit before you do so. Also, stop in and check out the mortgage section of the forum.

Re: NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 20:40:06 GMT

I'd also advise waiting if you're applying for a mortgage in under 12 mos.

I'm an NFCU member as well who has both NFCU CCs and the Discover IT. NFCU is generous with rebuilders, but I've also found Discover to increase CLIs generously as long as you run a decent amount of spend through the card and PIF. Personally, I love the Discover IT for the rotating 5% back -- especially considering they double it for the first year. It ended up giving us over $1k in cash back in the first year and my CL grew by 400%.

Re: NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 23:20:39 GMT

I would get NFCU more rewards. They give out good starting limits for rebuildets and the card has 200 dollar sign up bonus, 3 percent back on groceries and gas and 2 percent restaurants. Discover really doesn't compete well.

Re: NFCU vs. Discover?

AverageJoesCredit — Mon, 19 Mar 2018 23:26:02 GMT

@UpperNwGuywrote:
You will earn 1.5% cash back on both the Navy card and the Discover card, but Discover will double your cash back at the end of the first year, making it effectively a 3% card for that first year.

How is Discover a 3% back card for first year when it has rotating 5% cats and 1% on everything else? Just curious as i dont think Discover is a 1.5% like Navy CR Thanks..

Re: NFCU vs. Discover?

Anonymous — Mon, 19 Mar 2018 23:32:50 GMT

@AverageJoesCreditwrote:
@UpperNwGuywrote:
You will earn 1.5% cash back on both the Navy card and the Discover card, but Discover will double your cash back at the end of the first year, making it effectively a 3% card for that first year.
How is Discover a 3% back card for first year when it has rotating 5% cats and 1% on everything else? Just curious as i dont think Discover is a 1.5% like Navy CR Thanks..

I believe he mistakingly referenced the Discover it Miles card which is 1.5% and with the sign up bosnus is effectivly 3%. In OP's fist post he referenced the rotating cats card. So there's some confusion somewhere

Re: NFCU vs. Discover?

Summer16 — Tue, 20 Mar 2018 00:01:27 GMT

I'm biased, NFCU if you are choosing one. But with scores in the mid 600s. Apply for both if you are not applying for a mortage anytime soon.

Re: NFCU vs. Discover?

Anonymous — Tue, 20 Mar 2018 00:16:00 GMT

If I were to apply for both, how would you suggest I juggle the two if they essentially have the same rewards? Just alternate them every month? I'm trying to be as organized as possible while rebuilding, which is why I initially only thought about getting one so that I wasn't overwhelmed... LOL

Re: NFCU vs. Discover?

Summer16 — Tue, 20 Mar 2018 01:41:16 GMT

@Anonymouswrote:
If I were to apply for both, how would you suggest I juggle the two if they essentially have the same rewards? Just alternate them every month? I'm trying to be as organized as possible while rebuilding, which is why I initially only thought about getting one so that I wasn't overwhelmed... LOL

I believe it depends on the limits and APR granted as well as your ability to PIF. In my case, I try to use the AZEO, to maximum my score. I alternate which cards I use based on my ability to PIF. I feel like I have more than enough credit on my NFCU Platinum card. This card happens to be my highest limit and lowest APR. So I use it when I know I need to carry a balance and want to keep my UTIL low. I use my NFCU cash rewards when I will PIF because the APR is too high. Carrying a balance on this card would be absolute non-sense because the interest charged would eat up any cash rewards earned. I just got approved for the Discover IT but my plan is to use it the same way I have been using the NFCU cash rewards, because the APR is too high. But that's the method to my credit management madness.

Re: NFCU vs. Discover?

UpperNwGuy — Tue, 20 Mar 2018 11:34:00 GMT

@Anonymouswrote:
@AverageJoesCreditwrote:
@UpperNwGuywrote:
You will earn 1.5% cash back on both the Navy card and the Discover card, but Discover will double your cash back at the end of the first year, making it effectively a 3% card for that first year.
How is Discover a 3% back card for first year when it has rotating 5% cats and 1% on everything else? Just curious as i dont think Discover is a 1.5% like Navy CR Thanks..
I believe he mistakingly referenced the Discover it Miles card which is 1.5% and with the sign up bosnus is effectivly 3%. In OP's fist post he referenced the rotating cats card. So there's some confusion somewhere

Correct, I mistakenly assumed that OP was asking which bank was better for two similar cards. I didn't notice that the cards themselves were not similar. I would now change my response to say that both Navy and Discover are good banks, so figure out if you prefer 1.5% back on everything or 5% back on rotating categories -- keeping in mind that the 5% is really 10% the first year.