topic Re: Navy FCU...LOC or Signature Loan? in Credit Cards

Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 02:35:40 GMT

i am trying to decide bewteen a NFCU LOC or signature loan,

is one easier to get than the other? more generous? advantages or disadvantages?

thanks

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 02:58:07 GMT

Depends on how it reports.

Signature loans usually report as installment loans. If you don't already have an installment loan, getting one generally helps your FICO score a bit (better mix of credit).

Most lines of credit report as revolving credit. If you already have credit cards, the account itself won't do much for you, but its credit limit, if reported, will count toward your total credit limit for utilization purposes. This is good provided you only use a little of the available credit line.

Of course, your mileage may vary. Check with the loan/credit issuer and ask them exactly how the loan/LOC will appear on your credit report.

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 03:10:07 GMT

I just opened up a LOC with NFCU. I find it superior as it gives me access to cash if need be without paying cash advance fees on a CC.

Also, in the unlikely case that I overdraw my account, I won't have to worry about my checks bouncing.

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 03:16:44 GMT

thanks NWM,

i have 3 installment loans. one auto and two student loans, never late, current total 65K

i have 9 CC, never late and current total 21k available total UTL~10-12%

will check and see how it reports and if LOC credit reports...

anyone else?

Message Edited by mymy on 04-06-2008 10:16 PM

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 03:15:11 GMT

fretless,

did you apply online? instant approval?

Also, in the unlikely case that I overdraw my account, I won't have to worry about my checks bouncing.

thats what i was thinking

thanks

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 03:26:33 GMT

@Anonymous wrote:
fretless,
did you apply online? instant approval?
Also, in the unlikely case that I overdraw my account, I won't have to worry about my checks bouncing.
thats what i was thinking
thanks

I applied online and they had to verify my employment. It took a couple of days.

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 14:47:37 GMT

bump

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 15:46:19 GMT

We just applied for a LOC to accomodate our checking account (we're planning on moving our main checking to NFCU). DH asked if they could use the credit report that they used to approve his cc, but the rep said another hard pull had to be done. So dh authorized it, and we got the "needs to be reviewed" message. So, has anyone heard of being approved for the cc, but denied for the LOC? I'm pretty confident that we'll be approved, but there's always that little bit of doubt in the back of our head.

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 17:56:58 GMT

lyysaa,

i was approved for a JFCU CCin 01/15/08 for 5K,

then i applied and was approved for platnium card on 1/29/08 for a CL of 10k, but then CSR said that new account (i just opened on 01/02/08) needs to have 6 months of history before they can issue anything over 5K.

so 10K card would have to wait

then i appled for LOC for 5K and was declined for "pyrimiding debt" .

i am unclear what that term means it seems to mean something different depending on your CR.

Message Edited by mymy on 04-07-2008 12:56 PM

Re: Navy FCU...LOC or Signature Loan?

Anonymous — Mon, 07 Apr 2008 18:00:49 GMT

Looks like all those existing lines of credit and credit cards may be making them a bit nervous.

For right now, you're doing pretty good, FICO-wise. You've got several accounts, all in good standing, and low utilization.

I would just keep on the way you are now...apply again toward the end of summer, if you really want to.

Re: Navy FCU...LOC or Signature Loan?

MidnightVoice — Mon, 07 Apr 2008 18:01:17 GMT

creditworthyagain wrote:
To quote information from Creditloan.com website they explained it like this:

Pyramiding debt is a tricky term and can mean different things for different lenders. For most, pyramiding debt can mean one of two things: having too much available credit already or accumulating too many new credit cards. Essentially these can mean the same thing, since getting a lot of new credit cards can give you too much available credit. But, you might be denied for pyramiding debt even if you have not put in a credit card application for several months, but you still have a lot of credit available to you -- especially if it is equal to or greater than your current income. Since many people apply for a lot of cards in order to keep their individual balances low, this is a way for lenders to weed these people out.

To the average consumer, these reasons seem frivolous but, to a lender, they can be the first sign that they are reviewing the credit card application of someone who will eventually default or who will be hard to track down if they do become delinquent. Even if these reasons do not get you completely denied, because you have a very high credit score that gives the lender confidence in you, they can still cause you to get a much lower credit limit than you would have received otherwise. The best strategy is to make sure each of these factors are in check (as much as possible anyway), before you fill out any credit card applications.