topic Re: PenFed Credit Card in Credit Cards

PenFed Credit Card

Karatz — Thu, 16 Jul 2009 23:41:18 GMT

FYI: I was just quoted that PenFed looks for total utilization of under 40% when considering a credit card application. I'm right about there so I'll play it safe and just push it closer to the 30% mark before I apply.

Re: PenFed Credit Card

Anonymous — Fri, 17 Jul 2009 00:04:04 GMT

@Karatz wrote:
FYI: I was just quoted that PenFed looks for total utilization of under 40% when considering a credit card application. I'm right about there so I'll play it safe and just push it closer to the 30% mark before I apply.

As a PenFed high achiever I am going to tell you that 30% may not be low enough. (But it could be.) You are going to have to post much fuller detail of your credit picture before we render an opinion on your chances. App'ing PenFed presents many hoops you must jump through, and if you do not clear all of them you're going to be tripped up. (The following all matter, some but not all are show stoppers: baddies, recent lates, available credit to income, used credit to income, EQ FICO, inquiries, new accounts, documentation of income (sometimes) and more.)

Re: PenFed Credit Card

smallfry — Fri, 17 Jul 2009 00:28:45 GMT

I think 30% is too high. Egyptian.

Re: PenFed Credit Card

armymom — Fri, 17 Jul 2009 00:36:15 GMT

I called a few days ago to inquire about applying for one of their cards for a balance transfer and the CS rep told me they don't like to see over 38% utilization.

Re: PenFed Credit Card

Anonymous — Fri, 17 Jul 2009 00:38:09 GMT

As I attempted to indicate above there is a whole lot more to the matter than UTIL and FICO.

Re: PenFed Credit Card

haulingthescoreup — Fri, 17 Jul 2009 00:43:34 GMT

That 38% (or 40%) thing might mean that if you have scores in the 800's, no inquiries on EQ, no new accounts for four years, and a GS-15 salary, they might consider you. Maybe.

As CWCID said, PenFed is picky. Really, really picky. Many members here have been shot down, and they have had great credit profiles.

I would never take one tiny scrap of info like this and try to build something on it.

Re: PenFed Credit Card

Anonymous — Fri, 17 Jul 2009 01:53:49 GMT

Here is a possible strategy with PenFed.

1. Open your checking and savings.

2. Setup Direct Deposit to PenFed.

3. Transfer your discretionary savings (not locked into cd's) to PenFed.

4. Talk to a LO about applying for a Plat Visa, interested in the BT and would be willing to CLOSE the card that the balance is coming from.

If your DD paycheck and income is satisfactory, you have checking & savings (with some money in it) and you want to BT to lower your interest charges, and would be willing to close the other account in preference to PenFed.....maybe this might make a difference???

Re: PenFed Credit Card

Anonymous — Fri, 17 Jul 2009 02:30:46 GMT

You don't really talk directly to loan officers when dealing with PenFed on CC's. The idea is that the app's are to be computerized, not personalized. You are supposed to complete most of your transactions on-line and are rewarded for doing so. You talk to the CSR's who relay the information to the loan (or other) department by computer only in the case of problems. (Which in this case would be regarding the post decline reconsideration which is done via fax'ed letter.) PenFed aren't really horse traders either. I would not waste the hard INQ taken at membership time if not fully ready to file a CC app that will stand on its own two feet.

Message Edited by creditwherecreditisdue on 07-16-2009 10:30 PM

Re: PenFed Credit Card

score_building — Fri, 17 Jul 2009 02:28:16 GMT

i agree with HTSU but was told this too (about under 38%) and then denied under 28% with fairly strong app.

Re: PenFed Credit Card

wmarat — Fri, 17 Jul 2009 02:41:29 GMT

First time denied with my standart util. 0%, than approved with the same util.

Seriously, util. is only one of criteria.

Re: PenFed Credit Card

Karatz — Fri, 17 Jul 2009 04:34:26 GMT

I signed up and got declined, reason was utilization.

PENTAGON FCU 10/19/08
Creditor Contact Information
PENTAGON FCU
PO Box 1432
Forest Glen
Alexandria, VA 223131432

---

Same day report:

Payment history
Your history of paying bills on time. Great

Amount of debt
Your total amount of outstanding debt. Not Good

Length of credit history
How long you've had credit. Good

Amount of new credit
Amount of credit you've recently
obtained or applied for.
Great

---

Ratio of your revolving balances to your credit limits
45%

Your oldest account was opened
8 Years, 11 Months ago (10 years is Nov 2009)

Average age of your accounts
4 years

Total owed on revolving accounts
$10912

(I also have 9000 left in student loans)

Number of your accounts with a missed payment
0 accounts

Your applications for credit in the past year
0 inquiries

Number of accounts you opened in the past year
0 accounts

My score was around 721 on WaMu's site during that time.

---

Since then, I combined two Cap One cards, one of which is that oldest account, which brings the average age up significantly. I've been paying my dads mortgage for about 8 years and have 5 payments left before it's paid off and this isn't on my credit report. Got a (reported) motorcycle loan from Yamaha which will be paid off in 3 payments over 6 months by Sept, which will help payment history. My CC balances are slightly lower, but I've put extra money into stock rather, (NRG) and couple weeks ago bought some more AMD. I could pay off all the credit balance with that but it's earning me WAY more then the interest is costing me.

I'm in no rush, so I'll probably wait till the beginning of October where I'll have the Dad's mortgage payment amount as an extra payment on my credit cards, my cards should have total balances around 8k then, and then I'll just pay the two cards I charge on immediately as I charge so have the lowest possible balance when they report. -so maybe for Xmas, I'll ask for a PenFed card.

Hope this helps, inspires, and solicits

Re: PenFed Credit Card

Karatz — Fri, 17 Jul 2009 04:39:40 GMT

@Anonymous wrote:
@Karatz wrote:
FYI: I was just quoted that PenFed looks for total utilization of under 40% when considering a credit card application. I'm right about there so I'll play it safe and just push it closer to the 30% mark before I apply.
As a PenFed high achiever I am going to tell you that 30% may not be low enough. (But it could be.) You are going to have to post much fuller detail of your credit picture before we render an opinion on your chances. App'ing PenFed presents many hoops you must jump through, and if you do not clear all of them you're going to be tripped up. (The following all matter, some but not all are show stoppers: baddies, recent lates, available credit to income, used credit to income, EQ FICO, inquiries, new accounts, documentation of income (sometimes) and more.)

When I was talking to her, she was looking at my credit report from then. I told her not much had changed, just slight improvements across the board. I think I might call her in a few months. She was really friendly, and you could tell she was smart as heck. I should have asked her position, but all I got was her name.

Re: PenFed Credit Card

Karatz — Fri, 17 Jul 2009 04:44:50 GMT

@Anonymous wrote:
As I attempted to indicate above there is a whole lot more to the matter than UTIL and FICO.

I definately think you are right. Each person most assuredly reads your credit score in a different order, u know, they aren't all exactly alike, but in the end, they give value to the same things with only marginal differences.

Re: PenFed Credit Card

Karatz — Fri, 17 Jul 2009 05:02:14 GMT

@Anonymous wrote:
Here is a possible strategy with PenFed.

1. Open your checking and savings.
2. Setup Direct Deposit to PenFed.
3. Transfer your discretionary savings (not locked into cd's) to PenFed.
4. Talk to a LO about applying for a Plat Visa, interested in the BT and would be willing to CLOSE the card that the balance is coming from.

If your DD paycheck and income is satisfactory, you have checking & savings (with some money in it) and you want to BT to lower your interest charges, and would be willing to close the other account in preference to PenFed.....maybe this might make a difference???

Already been doing 1-3, so this was a feel out of 4. Like *scoreup said, their card isn't a dime a dozen, but I am willing to work for it - I don't need it, I just would rather have it. What bites is Penfed doesn't do anything with Corporations. There's a few things I'm good at which I charge if someone want[s] my services. I use a corporation to report that income as well as to receive all the tax benefits with. Personally, I'd rather have the corporation buy a couple homes and rent one to me rather then buy the home myself - which cuts out PenFed for that.

I was using Sharebuilder to stock my extra change since transfering in and out takes only a day, and I will test Penfed for that. You are right on about having some savings for emergencies and I don't mind having low interest for that, I just want easy access. I also want that savings with someone that I get a benefit from. I tested out Citibank and they failed miserably. I pay my citi-amex in full; however, they still doubled my interest rate. The branch did nothing, and said they could do nothing - so I took away my free money and bought stock at scottrade thats up 25% over the last 9 months.

Message Edited by Karatz on 07-16-2009 10:02 PM

Re: PenFed Credit Card

Karatz — Fri, 17 Jul 2009 04:58:00 GMT

@score_building wrote:
i agree with HTSU but was told this too (about under 38%) and then denied under 28% with fairly strong app.

Did you get a credit report immediately? You could compare with mine and see what differences we have.

Re: PenFed Credit Card

Anonymous — Fri, 17 Jul 2009 05:08:35 GMT

@Karatz wrote:
@Anonymous wrote:
Here is a possible strategy with PenFed.

1. Open your checking and savings.
2. Setup Direct Deposit to PenFed.
3. Transfer your discretionary savings (not locked into cd's) to PenFed.
4. Talk to a LO about applying for a Plat Visa, interested in the BT and would be willing to CLOSE the card that the balance is coming from.

If your DD paycheck and income is satisfactory, you have checking & savings (with some money in it) and you want to BT to lower your interest charges, and would be willing to close the other account in preference to PenFed.....maybe this might make a difference???
Already been doing 1-3, so this was a feel out of 4. Like *scoreup said, their card isn't a dime a dozen, but I am willing to work for it - I don't need it, I just would rather have it. What bites is Penfed doesn't do anything with Corporations. There's a few things I'm good at which I charge if someone want[s] my services. I use a corporation to report that income as well as to receive all the tax benefits with. Personally, I'd rather have the corporation buy a couple homes and rent one to me rather then buy the home myself - which cuts out PenFed for that.

I was using Sharebuilder to stock my extra change since transfering in and out takes only a day, and I will test Penfed for that. You are right on about having some savings for emergencies and I don't mind having low interest for that, I just want easy access. I also want that savings with someone that I get a benefit from. I tested out Citibank and they failed miserably. I pay my citi-amex in full; however, they still doubled my interest rate. The branch did nothing, and said they could do nothing - so I took away my free money and bought stock at scottrade thats up 25% over the last 9 months.
Message Edited by Karatz on 07-16-2009 10:02 PM

Did you call and ask about having this reduced? Many of those who made the effort to do so got their APR increase rolled back. The branch would be worthless in this regard.

Re: PenFed Credit Card

Karatz — Fri, 17 Jul 2009 14:55:16 GMT

@Anonymous wrote:
@Karatz wrote:
@Anonymous wrote:
Here is a possible strategy with PenFed.

1. Open your checking and savings.
2. Setup Direct Deposit to PenFed.
3. Transfer your discretionary savings (not locked into cd's) to PenFed.
4. Talk to a LO about applying for a Plat Visa, interested in the BT and would be willing to CLOSE the card that the balance is coming from.

If your DD paycheck and income is satisfactory, you have checking & savings (with some money in it) and you want to BT to lower your interest charges, and would be willing to close the other account in preference to PenFed.....maybe this might make a difference???
Already been doing 1-3, so this was a feel out of 4. Like *scoreup said, their card isn't a dime a dozen, but I am willing to work for it - I don't need it, I just would rather have it. What bites is Penfed doesn't do anything with Corporations. There's a few things I'm good at which I charge if someone want[s] my services. I use a corporation to report that income as well as to receive all the tax benefits with. Personally, I'd rather have the corporation buy a couple homes and rent one to me rather then buy the home myself - which cuts out PenFed for that.

I was using Sharebuilder to stock my extra change since transfering in and out takes only a day, and I will test Penfed for that. You are right on about having some savings for emergencies and I don't mind having low interest for that, I just want easy access. I also want that savings with someone that I get a benefit from. I tested out Citibank and they failed miserably. I pay my citi-amex in full; however, they still doubled my interest rate. The branch did nothing, and said they could do nothing - so I took away my free money and bought stock at scottrade thats up 25% over the last 9 months.
Message Edited by Karatz on 07-16-2009 10:02 PM
Did you call and ask about having this reduced? Many of those who made the effort to do so got their APR increase rolled back. The branch would be worthless in this regard.

Ya. Probably didn't call as many times as I should. School was tough those two semesters. I probably called 5 - 6 times. I guess I should try again while I have time.

Re: PenFed Credit Card

armymom — Fri, 17 Jul 2009 15:09:19 GMT

@haulingthescoreup wrote:
That 38% (or 40%) thing might mean that if you have scores in the 800's, no inquiries on EQ, no new accounts for four years, and a GS-15 salary, they might consider you. Maybe.

As CWCID said, PenFed is picky. Really, really picky. Many members here have been shot down, and they have had great credit profiles.

I would never take one tiny scrap of info like this and try to build something on it.

Didn't mean to come across as utilization being the only factor, if that's how it sounded. I was just stating what a CS rep told me, that's all.

Re: PenFed Credit Card

score_building — Fri, 17 Jul 2009 15:19:26 GMT

@Karatz wrote:
I signed up and got declined, reason was utilization.

PENTAGON FCU 10/19/08
Creditor Contact Information
PENTAGON FCU
PO Box 1432N
Forest Glen
Alexandria, VA 223131432
---
Same day report:
Payment history
Your history of paying bills on time. Great/ Great

Amount of debt
Your total amount of outstanding debt. Not Good/ Not Good

Length of credit history
How long you've had credit. Good/ Great

Amount of new credit
Amount of credit you've recently
obtained or applied for.
Great
---
Ratio of your revolving balances to your credit limits
45%/ <28%

Your oldest account was opened
8 Years, 11 Months ago (10 years is Nov 2009)
21 Years

Average age of your accounts
4 years
5 years 6 mos

Total owed on revolving accounts
$10912/ $8950

(I also have 9000/ 12500 left in student loans)

Number of your accounts with a missed payment
0 accounts/ 1 account (5 yrs 6mos ago SL)

Your applications for credit in the past year
0 inquiries/ 2 inq

Number of accounts you opened in the past year
0 accounts/ 2 accounts

My score was around 721/ 735 on WaMu's site during that time.
(EQ 715)
---
Since then, I combined two Cap One cards, one of which is that oldest account, which brings the average age up significantly. I've been paying my dads mortgage for about 8 years and have 5 payments left before it's paid off and this isn't on my credit report. Got a (reported) motorcycle loan from Yamaha which will be paid off in 3 payments over 6 months by Sept, which will help payment history. My CC balances are slightly lower, but I've put extra money into stock rather, (NRG) and couple weeks ago bought some more AMD. I could pay off all the credit balance with that but it's earning me WAY more then the interest is costing me.

I'm in no rush, so I'll probably wait till the beginning of October where I'll have the Dad's mortgage payment amount as an extra payment on my credit cards, my cards should have total balances around 8k then, and then I'll just pay the two cards I charge on immediately as I charge so have the lowest possible balance when they report. -so maybe for Xmas, I'll ask for a PenFed card.

Hope this helps, inspires, and solicits

Message Edited by score_building on 07-17-2009 08:19 AM

Re: PenFed Credit Card

haulingthescoreup — Fri, 17 Jul 2009 17:18:48 GMT

armymom wrote:

@haulingthescoreup wrote:
That 38% (or 40%) thing might mean that if you have scores in the 800's, no inquiries on EQ, no new accounts for four years, and a GS-15 salary, they might consider you. Maybe.

As CWCID said, PenFed is picky. Really, really picky. Many members here have been shot down, and they have had great credit profiles.

I would never take one tiny scrap of info like this and try to build something on it.
Didn't mean to come across as utilization being the only factor, if that's how it sounded. I was just stating what a CS rep told me, that's all.

I hear ya --I've just read so many posts by people who thought that they qualified for something and were shot down, and they're standing there bewildered.

It was tough enough figuring who had a decent chance for acquiring which card a year or two ago. Nowadays, it's like wandering blindfolded through a minefield.