topic Re: Does PenFed report as a credit card? in Credit Cards

Does PenFed report as a credit card?

expatCanuck — Fri, 11 Jan 2019 14:31:04 GMT

Received approval from PenFed for a PowerCash card, but the approval .pdf states that I've been approved for a loan.

Does a PenFed card report as a loan?

(If so, I'm inclined not to finalize the transaction.)

Re: Does PenFed report as a credit card?

thornback — Fri, 11 Jan 2019 14:39:07 GMT

Reports as a revolving credit card. PenFed refers all of their credit products (and, obviously, loans) as loans for whatever reason.

Congrats on your approval!

Re: Does PenFed report as a credit card?

SBR249 — Fri, 11 Jan 2019 14:43:52 GMT

IME, a lot of credit unions classify their CCs as loan products when it comes to documentation.

Re: Does PenFed report as a credit card?

Anonymous — Fri, 11 Jan 2019 14:54:26 GMT

@SBR249 wrote:
IME, a lot of credit unions classify their CCs as loan products when it comes to documentation.

Why? It it to make cross-collateralization easier for th CU?

Re: Does PenFed report as a credit card?

SBR249 — Fri, 11 Jan 2019 15:36:24 GMT

@Anonymous wrote:
@SBR249 wrote:
IME, a lot of credit unions classify their CCs as loan products when it comes to documentation.
Why? It it to make cross-collateralization easier for th CU?

I honestly have no idea, possibly? I just know that I have applied for CC products with 4 credit unions so far and all of their CC e-docs say "loan document" on it.

Re: Does PenFed report as a credit card?

Remedios — Fri, 11 Jan 2019 15:54:26 GMT

My local CU calls cards loans, too.

Also, when I got their card, I activated it but did not use for approximately three months. They did not report to CRAs during that time period. Once I made the first charge, they reported it, with the date of first use as open date.

Re: Does PenFed report as a credit card?

FinStar — Fri, 11 Jan 2019 15:56:33 GMT

A credit card is technically a revolving loan origination. Keep in mind that a variety of FIs and CUs have security agreements in place to any revolving credit product.

By and large, a CC is a loan on plastic.

Re: Does PenFed report as a credit card?

AverageJoesCredit — Sat, 12 Jan 2019 02:40:14 GMT

If you close a PF cc, Ex will report it as loan closed lol.