topic Re: NavyFed Platinum / weird scenario / need advice in Credit Cards

NavyFed Platinum / weird scenario / need advice

SeeSaw — Sun, 24 Apr 2022 08:26:40 GMT

This past Feburary, I applied for and was approved for the NavyFed platinum card. My plan was to do a $2200 balance transfer from my Barclays Arrival Plus card in preperation for international travel next month. This card has been discontinued and I'm not sure if i will be able to keep it after it expires at the end of the year, but I digress.

I "incorrectly" assumed, based on the data points, that I would receive a SL around $10K+. I was only approved for $2500. Now i have a new card with 89% utilization that is starting to impact my scores. I requested a SL reconsideration which resulted in a 2nd hard pull and ultimate denial. I can pay off the new card, but that would defeat the purpose of getting it for the 0% balance transfer apr for (I can't remember the terms). Also, I could have simply paid off the Barclays balance and saved myself 2 hard inquiries and this high utilization card.

I'm curious if this new, high utilization card will be ok in the short term or should I just cut my losses and pay off the balance???

Re: NavyFed Platinum / weird scenario / need advice

SUPERSQUID — Sun, 24 Apr 2022 08:57:09 GMT

Don't feel bad. i had plans to do sort of the same thing but my platinum was approved only with 1k. my cr has a cl of 9700 so i asked navy if i could reallocate 4700 from the cash rewards to the platinum and they said no because the cash rewards is less than 12 months old. so now i have a useless platinum with a zero bt offer and only 1k sl.

i have a discover with a zero bt on it for 1600 and it ends in sept, i was hoping to bt a large chunk of it to the plat but that plan sunk

Re: NavyFed Platinum / weird scenario / need advice

SeeSaw — Sun, 24 Apr 2022 08:57:24 GMT

Yeah. That was a disappointing.

I tried to do a product change but the said I couldn't do it because my interest rate would change from 17.99 to 18, lol. So I guess I'll just roll with it. I'm gardening anyway so, at this moment, it's not life or death

Re: NavyFed Platinum / weird scenario / need advice

cashorcharge — Sun, 24 Apr 2022 08:57:39 GMT

That's terrific!! Congratulations on your NFCU Approval!! 🎉🥂👏

Re: NavyFed Platinum / weird scenario / need advice

CreditMagic7 — Sun, 24 Apr 2022 08:58:00 GMT

Wonderful! Congratulations on your Platinum Card APPROVAL!!

Re: NavyFed Platinum / weird scenario / need advice

Jordan23ww — Sun, 24 Apr 2022 08:58:14 GMT

Congratulations on your approval! Sorry to hear the limit wasn't what you were hoping for and the issues it's caused with your balance transfer and utilization.

If you don't have any major plans to apply for other things right now you should be ok just taking your time to pay down this balance transfer. Utilization has no memory. The points you lose on your FICO scores for having 89% utilization should be given back to you as you continue to pay the balance down. Best wishes to you with whatever you decide to do!

Re: NavyFed Platinum / weird scenario / need advice

SeeSaw — Sun, 24 Apr 2022 08:58:29 GMT

Thanks. That's the advice i needed. I'm gardening until the end of the year so I will just chip away at it over the next few months while gardening.

Re: NavyFed Platinum / weird scenario / need advice

SUPERSQUID — Sun, 24 Apr 2022 08:58:43 GMT

@SeeSaw wrote:
Yeah. That was a disappointing.
I tried to do a product change but the said I couldn't do it because my interest rate would change from 17.99 to 18, lol. So I guess I'll just roll with it. I'm gardening anyway so, at this moment, it's not life or death

Dont forget that first navy cli might be in 91/3 and every 6 months after. if you get decent cli's it will help your util. i plan to try and grow that 1k baby platinum into an adult via cli's.

Re: NavyFed Platinum / weird scenario / need advice

MauiMan85297 — Sun, 24 Apr 2022 08:58:56 GMT

@SeeSaw wrote:
Thanks. That's the advice i needed. I'm gardening until the end of the year so I will just chip away at it over the next few months while gardening.

You answered your question, you're gardening for now. Your score is only good to take on additional debt, if you're not looking to get another card (debt) it doesn't matter what CU is at and what that does to your score. Once you pay it down/off the scores rebound next cycle but do it in a timeframe that benefits you by obtaining that card for the transfer of balance- Congrats!

Re: NavyFed Platinum / weird scenario / need advice

SeeSaw — Sun, 24 Apr 2022 08:59:09 GMT

Sounds great. I appreciate that info. I didn't think about it that way. I also didn't want to have any of my current banks freaking out because my scores were trending down.

Re: NavyFed Platinum / weird scenario / need advice

babygirl1256 — Sun, 24 Apr 2022 08:56:41 GMT

Congrats on your NFCU Platinum approval. I wouldn't close it but wait towards year-end to see if Navy Federal automatically does a product change without another hard inquiry! Best wishes on resolving this matter!

Re: NavyFed Platinum / weird scenario / need advice

SouthJamaica — Sun, 24 Apr 2022 08:56:28 GMT

@SeeSaw wrote:
This past Feburary, I applied for and was approved for the NavyFed platinum card. My plan was to do a $2200 balance transfer from my Barclays Arrival Plus card in preperation for international travel next month. This card has been discontinued and I'm not sure if i will be able to keep it after it expires at the end of the year, but I digress.

I "incorrectly" assumed, based on the data points, that I would receive a SL around $10K+. I was only approved for $2500. Now i have a new card with 89% utilization that is starting to impact my scores. I requested a SL reconsideration which resulted in a 2nd hard pull and ultimate denial. I can pay off the new card, but that would defeat the purpose of getting it for the 0% balance transfer apr for (I can't remember the terms). Also, I could have simply paid off the Barclays balance and saved myself 2 hard inquiries and this high utilization card.

I'm curious if this new, high utilization card will be ok in the short term or should I just cut my losses and pay off the balance???

I would pay it down to $700, then your scores will come back.

Re: NavyFed Platinum / weird scenario / need advice

DesertWanderer — Sun, 24 Apr 2022 08:56:12 GMT

Congrats on your approval. Navy cards can grow fast. By the time you are done gardening hopefully you have the CL you wanted.

Re: NavyFed Platinum / weird scenario / need advice

ocheosa — Sun, 24 Apr 2022 08:55:57 GMT

@SeeSaw wrote:
Sounds great. I appreciate that info. I didn't think about it that way. I also didn't want to have any of my current banks freaking out because my scores were trending down.

@SeeSaw

You weren't quite clear in your OP. Is this your first NFCU card? If so, not sure why you expected 10k ? Given the forum feedback, it would seem most first cards have a low SL. If this is actually your 2nd card, try to have some of the credit line moved from Card 1 to Card 2. The feedback over the last months suggest this is the only way they may reallocate credit lines.

If this is your first NFCU card and as a person who uses BT's (with new lenders) to create payment history, I would offer the following advice - especially with Navy ...

Please don't leave the card with that high amount of utilization. Has nothing to do with fico scores but the relationship with Navy. I would pay it down to at minmum 30%, then split the remaining amount due over no more than 9-10 months max. I am assuming this is your first card with NFCU and you don't want to start the relationship this way. If you didnt have the funds, I would have suggested opening another card and transferring the overage io it. You don't want any problems when trying to get a credit line increase or applying for the next card. Just an opinion, only you know your financial capabilities. Good luck!

Re: NavyFed Platinum / weird scenario / need advice

SeeSaw — Sun, 24 Apr 2022 08:55:43 GMT

In my OP I was clear that "based on data points" I assumed that I would get a SL of $10k+. This is not my first product with NavyFed. I have personal and business products with them. This card was designed to hold balances transferred from other cards, and during the welcome period, card holders are given a zero interest time frame in which to do so. So, It would not make alot of sense to me to encourage someone to hold a balance on a card and then penalize them for doing so.

Re: NavyFed Platinum / weird scenario / need advice

AverageJoesCredit — Sun, 24 Apr 2022 08:55:29 GMT

@SeeSaw wrote:
This past Feburary, I applied for and was approved for the NavyFed platinum card. My plan was to do a $2200 balance transfer from my Barclays Arrival Plus card in preperation for international travel next month. This card has been discontinued and I'm not sure if i will be able to keep it after it expires at the end of the year, but I digress.

I "incorrectly" assumed, based on the data points, that I would receive a SL around $10K+. I was only approved for $2500. Now i have a new card with 89% utilization that is starting to impact my scores. I requested a SL reconsideration which resulted in a 2nd hard pull and ultimate denial. I can pay off the new card, but that would defeat the purpose of getting it for the 0% balance transfer apr for (I can't remember the terms). Also, I could have simply paid off the Barclays balance and saved myself 2 hard inquiries and this high utilization card.

I'm curious if this new, high utilization card will be ok in the short term or should I just cut my losses and pay off the balance???

I think you are fine. Every month you make payments, the util % will drop so eventually you will be out of the danger zone. Use the card for its intended purpose. In my experience Navy does not mind a card being used with high utilization so long as you make your payments on time and show progress. I'm carrying a huge bt balance of my CR for my Dad and Navy still gave me a 4.5k increase a few weeks ago. If it helps you to keep the balance with Navy, do it, pay it and in no time you will have built some positive history

Re: NavyFed Platinum / weird scenario / need advice

SeeSaw — Sun, 24 Apr 2022 08:55:14 GMT

Thanks alot. I'm coming up on the 91/3 threshold soon, and wanted to make sure I was using that card as intended while not damaging my relationship with NavyFed.

Re: NavyFed Platinum / weird scenario / need advice

CreditAggie — Sun, 24 Apr 2022 08:54:58 GMT

Congratulations on your NFCU approval!

Re: NavyFed Platinum / weird scenario / need advice

UncleB — Sun, 24 Apr 2022 08:30:59 GMT

Hi @SeeSaw, I've slightly altered your thread subject and moved the thread to the 'Credit Cards' board to get your questions more exposure.

Also, when responding to posts if you'll tap the "Quote" button before you type your reply it will be more clear to the community who you're actually replying to.

--UB

Re: NavyFed Platinum / weird scenario / need advice

UncleB — Sun, 24 Apr 2022 08:54:44 GMT

@SeeSaw wrote:
Thanks alot. I'm coming up on the 91/3 threshold soon, and wanted to make sure I was using that card as intended while not damaging my relationship with NavyFed.

For what it's worth, I don't recall hearing of anybody having an issue with NFCU getting squirrelly over individual utilization, assuming other accounts (non-NFCU) are in good shape. Actually if I had to max-out a card or get a cash advance, I would chose one of my NFCU cards for that very reason.

If it were me, I would keep the BT right where it is and pay as you had planned to. It's possible you'll lose a few FICO points in the short term for this card having high utilization, but unless you're about to apply for a mortgage I would put finances over FICOs.

Note that the above speculation on your FICO assumes you're mostly paying your other accounts (non-NFCU) in full each month and there are no recent and/or significant negatives on your credit report, otherwise this logic goes out the window.

@SeeSaw wrote:
I also didn't want to have any of my current banks freaking out because my scores were trending down.

This is another matter, and would depend more on your overall credit profile.

Before any of us could give advice on this we'd need to know more information, such as what other accounts you have (what banks), utilization, and your credit scores.

Since there's a disconnect between what you expected and what Navy gave you on your new card there might be reason to have concern about other banks reacting/taking adverse action, but again without more information we really can't help.