topic Re: NFCU changed unsecured credit policy for new members in Credit Cards

NFCU changed unsecured credit policy some for new members

Anonymous — Wed, 07 Oct 2009 01:54:14 GMT

I encouraged a friend to join NFCU. He visited a branch in Temecula, CA this weekend to join and wanted to apply for a CC product. He was told, with emphasis, NFCU will not issue an unsecured loan product to new members without first signing up for direct deposit. Once NFCU sees the direct deposit then his application for an unsecured credit product will be considered.

Confused, I called NFCU and was told as follows:

1. This is a new policy for NFCU ( started to institute this policy around FEB/MARCH of 2009)

2. New NFCU members will be required to sign up for direct deposit to be considered for an unsecured NFCU product.

3. If a spouse is already a member this will not be a requirement whereby NFCU already has financial history.

4. One's EQ FICO score will not be a factor with respect to this policy change ( regardless of how high ).

5. If one cannot do a direct deposit one will only be offered a secured CC product to then be unsecured after one year.

6. NFCU will only require one spouse of married couples to have direct deposit.

7. The minimum direct deposit NFCU wants to see is $100 per month.

8. Retirees whom cannot make a direct deposit will not be held to this standard.

9. NFCU instituted this policy because their records have shown high default rates, since the later part of 2008, with new members whom opened CC and other unsecured loan products and defaulted immediately or soon thereafter.

10. No current members without direct deposit will be required to sign up for direct deposit to apply for any unsecured loan products.

It appears that NFCU CSRs and NFCU branches may now be fully aware of this new policy and are following it.

It is new information for me, however, it may not be for members here. I just do not recall seeing a thread with this new policy posted. It seems there may be more to this new NFCU policy...this is all the information one particular CSR provided me based on my questions.

ETA: I just spoke with a NFCU supervisor in the CC department at 5:25 pm PST and was told this new policy will apply to new members with less than 2 years credit history on their EQ report. The history can be revolving or installment.

edited subject line at 6:53 pm PST in addition to the original edit at 5:30 pm PST

Message Edited by plasticman on 10-06-2009 06:54 PM

Re: NFCU changed unsecured credit policy for new members

mt2va — Tue, 06 Oct 2009 20:26:01 GMT

They may be following this now but they were not when I opened my account in May of this year. I was approved for 2 un-secured CC within a week & my EQ FICO was under 600 at the time & my annual salary is not anywhere near what most on here have. I was sending $20 every 2 weeks to put in my savings account but it is not set up on direct deposit.

I guess I'm fortunate they were not requiring it when I joined because changing my DD around at work is a real pain & I don't have an extra $100 a month to put in accounts with NFCU.

I guess I can see their point though that they are giving people all these CC & no one is depositing any money with them. They are my primary savings account & I now have a LOC & car loan with them.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 20:34:53 GMT

Doggoneit!

I just sent them $600 to deposit in my NFCU savings that I opened last week for the sole purpose of applying for a NFCU card.

Now, I gotta do a direct deposit too. This seems like a lot of trouble for a card that they have little or no risk since they will already have $$ upfront.

Though I understand that they can still have a loss on a secured card account due to over limit and late fees, they can shut down a card before that happens. I know that for sure...I used to work for a credit union and we did it all the time. The account can be automated to shut down when it reaches a certain limit.

We'll find out for sure next week when I call to request the secured card. Will let you guys know what happens.

Argh!!!!!!!!!!!!!

Message Edited by ER_Tech on 10-06-2009 01:34 PM

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 20:40:53 GMT

Now I am confused too.....after re-reading your post, what do you mean when you say on #5"If one cannot do a direct deposit one will only be offered a secured CC product to then be unsecured after one year". So, are you saying that the direct deposit doesn't matter at the end of the day if you are seeking an unsecured card? Please clarify.

Thanks!!!

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 20:41:01 GMT

@Anonymous wrote:
Doggoneit!

I just sent them $600 to deposit in my NFCU savings that I opened last week for the sole purpose of applying for a NFCU card.

Now, I gotta do a direct deposit too. This seems like a lot of trouble for a card that they have little or no risk since they will already have $$ upfront.

Though I understand that they can still have a loss on a secured card account due to over limit and late fees, they can shut down a card before that happens. I know that for sure...I used to work for a credit union and we did it all the time. The account can be automated to shut down when it reaches a certain limit.

We'll find out for sure next week when I call to request the secured card. Will let you guys know what happens.

Argh!!!!!!!!!!!!!
Message Edited by ER_Tech on 10-06-2009 01:34 PM

If I recall correctly you are applying for a secured CC. This policy should not affect you if this is the case.

Re: NFCU changed unsecured credit policy for new members

MsKiwi — Tue, 06 Oct 2009 20:46:44 GMT

It's not that this is a problem.............................but ................I swear I am always a day late and a dollar short. I worked very hard building up a rep at BOA only to find out that when I was comfortable to apply for a secured, they pulled that plug. After the app frenzy for NFCU I finally decided to app 3 days ago and now I get this info? Now I have to, once again switch banks and DD, which will take at least 3 weeks.

Me thinks G-d doesn't want me to move ahead. I SWEAR!!!!!!!!!

Maybe this is a good thing, maybe I should just go drink a frickin crown and 7-up.

Each time I move up the FICO ladder and try to improve, something slaps me arse down.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 20:46:47 GMT

OMG, you said your friend applied for an unsecured card. Got my undies all in a bunch for nothing!!!

Sorry about that.

Thanks for planting my feel back on the ground.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 20:54:57 GMT

@MsKiwi wrote:
It's not that this is a problem.............................but ................I swear I am always a day late and a dollar short. I worked very hard building up a rep at BOA only to find out that when I was comfortable to apply for a secured, they pulled that plug. After the app frenzy for NFCU I finally decided to app 3 days ago and now I get this info? Now I have to, once again switch banks and DD, which will take at least 3 weeks.

Me thinks G-d doesn't want me to move ahead. I SWEAR!!!!!!!!!

Maybe this is a good thing, maybe I should just go drink a frickin crown and 7-up.

Each time I move up the FICO ladder and try to improve, something slaps me arse down.

LOL

My suggestion for any member would be to first verify what I was told by my friend whom just joined at a branch an applied for a CC and what I was told directly by one NFCU CSR. I am not convinced this policy is in stone nor am I convinced what I was told today is the gospel.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 21:08:23 GMT

My son joined 2 weeks ago and applied for the cash rewards visa at the same time. He was instantly approved with a $15,000 limit.

Re: NFCU changed unsecured credit policy for new members

MsKiwi — Tue, 06 Oct 2009 21:16:36 GMT

@Anonymous wrote:
@MsKiwi wrote:
It's not that this is a problem.............................but ................I swear I am always a day late and a dollar short. I worked very hard building up a rep at BOA only to find out that when I was comfortable to apply for a secured, they pulled that plug. After the app frenzy for NFCU I finally decided to app 3 days ago and now I get this info? Now I have to, once again switch banks and DD, which will take at least 3 weeks.

Me thinks G-d doesn't want me to move ahead. I SWEAR!!!!!!!!!

Maybe this is a good thing, maybe I should just go drink a frickin crown and 7-up.

Each time I move up the FICO ladder and try to improve, something slaps me arse down.
LOL

My suggestion for any member would be to first verify what I was told by my friend whom just joined at a branch an applied for a CC and what I was told directly by one NFCU CSR. I am not convinced this policy is in stone nor am I convinced what I was told today is the gospel.

Ok....... I had to take a mini break, unfortunatley not with a crown &7 but some coffee & cream (wee-haa..I............. if nothing.............live the adventurous life)

This is business and I made my bed. Doesn't matter if it was a health, divorce, unemployment................... I Made My Bed. Now my question and to rip me own arse is.......................Fix it. The only problem I see is that I'm working on it and want to see at least 1 half decent card before Jan. I really think coming the next few months, if you do not have something prime..........you are screwed. I'm just trying to break into 1 decent darn card. All I own are rebuilders.

ok, my pity party is over.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 21:19:25 GMT

I failed to mention, the CSR told me NFCU was experiencing new members opening unsecured CCs and then immediately taking large cash advances. NFCU was not even receiving the first payment. Somewhat same type situation with other unsecured cash loan products.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 21:22:51 GMT

Is can see that happening but a direct deposit of $100 per month is not going to fix that if I take the cash advance as soon as I get the card.

Re: NFCU changed unsecured credit policy for new members

MsKiwi — Tue, 06 Oct 2009 21:29:53 GMT

@Anonymous wrote:
I failed to mention, the CSR told me NFCU was experiencing new members opening unsecured CCs and then immediately taking large cash advances. NFCU was not even receiving the first payment. Somewhat same type situation with other unsecured cash loan products.

So some people rebuilding are not doing it for honest reasons and are muckin up for those of us who are trying. Loverly, btw the way ,coffee and cream and all it's cracked up to be when you want a crown & 7 . LOL

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 21:30:16 GMT

@Anonymous wrote:
Is can see that happening but a direct deposit of $100 per month is not going to fix that if I take the cash advance as soon as I get the card.

I agree..perhaps NFCU will consider the direct deposit amount along with EQ score/credit profile when making an unsecured CL decision. I dunno...I can only speculate based on the information I obtained today. It will be interesting to hear other new NFCU members experience going forward and the information obtained for unsecured cash products thereto.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 22:19:05 GMT

@Anonymous wrote:
My son joined 2 weeks ago and applied for the cash rewards visa at the same time. He was instantly approved with a $15,000 limit.

Hi hemi961,

This is great information. Just the type of information the members need. The newer the actual experiences of members here the better. IMO

It seems to me this policy is "evolving" with NFCU. What the final actual policy will end up "evolving" to is yet to be seen. IMHO

ETA: I presume your son was not required to have direct deposit set up. Is he currently in the military? Do you have an established account with NFCU?

Message Edited by plasticman on 10-06-2009 03:19 PM

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 23:08:03 GMT

If I had new business to conduct with NFCU I would go ahead and do it until we hear of a few more new members being turned away. Could be that the branch people in Temecula have enough spare time on their hands that they actually read all the procedural emails that are sent out. Those in the credit granting department may be too busy to do so!

If this does turn out to be widely applicable NFCU would be more conservative for new members that PenFed is.

Re: NFCU changed unsecured credit policy for new members

smallfry — Tue, 06 Oct 2009 23:28:25 GMT

NFCU has been far too easy. Penfed far too hard.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 23:32:59 GMT

@Anonymous wrote:
If I had new business to conduct with NFCU I would go ahead and do it until we hear of a few more new members being turned away. Could be that the branch people in Temecula have enough spare time on their hands that they actually read all the procedural emails that are sent out. Those in the credit granting department may be too busy to do so!

If this does turn out to be widely applicable NFCU would be more conservative for new members that PenFed is.

Although I spoke today directly with a CSR in Virginia, I have been told different things (on other subjects) by different NFCU CSRs in Virginia on several occasions, I agree completely with CWCID.

edited in an attempt at clarity

Message Edited by plasticman on 10-06-2009 04:32 PM

Re: NFCU changed unsecured credit policy for new members

haulingthescoreup — Tue, 06 Oct 2009 23:50:15 GMT

All I can say is, wow.

If Navy is getting burned by new members doing cash advances and defaulting, how about restricting new members from doing cash advances? Duh.

You gotta hope this isn't a trend. Imagine if every CC issuer required that one do direct deposit to them every month. My poor paycheck would be split 8 ways at least, more if I had to do two direct deposits for a bank from which I had two cards!

I suppose if I can dig up some sort of CD product or MMA at Navy, I could do that. But I'm trying to simplify my banking life, not make it even more crazy.

Re: NFCU changed unsecured credit policy for new members

Anonymous — Tue, 06 Oct 2009 23:59:10 GMT

@Anonymous wrote:
If I had new business to conduct with NFCU I would go ahead and do it until we hear of a few more new members being turned away. Could be that the branch people in Temecula have enough spare time on their hands that they actually read all the procedural emails that are sent out. Those in the credit granting department may be too busy to do so!

If this does turn out to be widely applicable NFCU would be more conservative for new members that PenFed is.

+1

I had just signed up last week to get an account established with them so I could build a relationship before looking for my first mortgage. After reading this thread, I went ahead and pulled the trigger on a Platinum Visa App even though I intended to wait until after I got direct deposit set up and my scores over 700.... But I am impatient.

@$14k @ 12.9%

Not a great interest rate, but also not too bad for someone with a 687EQ and a BK7 from '04!

New fan of NFCU, and hopefully PenFed and Alliant will soft me and see the new highest CL and try to compete!