topic Re: PenFed really is conservative and follows strict rules in Credit Cards

PenFed really is conservative and follows strict rules

jesseh — Fri, 21 Mar 2014 00:18:34 GMT

So my situation is: I have no credit history. I thought "Let's join PenFed and open an account"

Not easy seems, so I'm sharing this story for anyone interested.

At the end of the application I got the error that they would not issue me my security code as I did not have a credit history. Which meant: I had to get my passport, social security card and utility bill notarized. There was no way around this, because I'm abroad that was a huge hassle. I got it done at a notary (expensive btw) so emailed it repeatedly, after calling cs found out that the csr misspelled my email address during my application so the documents were not connected to my account.

So later, finally, my membership was complete and I got my security code. Yay!

Ok, not yay, if they weren't able to pull your credit (like if you don't have any) they put all sorts of restrictions on your account. You can not even open checking or savings accounts. However, you can apply for credit cards, but the csr's tell me that 'because they are a conservative lender' such accounts will have a hard time getting approvals.

So how to get the restriction off? You have to wait 6 months after opening the account, then mail them a signed letter where you ask them to do another hard inquiry on you (which they already did when joining..). If they like that, they may remove the restrictions.

All csr's tell me every time I speak to them that penfed is a very conservative lender

I have experience with other credit unions (afcu, sdfcu) and none of them require notarized documents or restrict accounts like this.

So moral is: PenFed really is conservative and can be a big hassle

Good side is that the oregon csr's are helpful in general, unfortunately they just have to follow the very strict rules.

Re: PenFed really is conservative and follows strict rules

grinlikechelsea — Fri, 21 Mar 2014 00:42:35 GMT

PenFed is probably one of the toughest lenders I've ever come across, although I know Iberia Bank and Simmons First are also very difficult. It isn't uncommon for someone with good credit to be denied for "pyramiding debt." But they are very generous if you get approved!

Re: PenFed really is conservative and follows strict rules

B335is — Fri, 21 Mar 2014 00:56:15 GMT

Yes they are one of the most conservative. After they approved me online for $7500 card, their analysts revoked approval due to pyramiding.

Re: PenFed really is conservative and follows strict rules

Hockeyplayrr — Fri, 21 Mar 2014 05:08:57 GMT

I ended up approved for 50k on a credit card (definitely too much) and instead of it being lowered to fit my income I too had an analyst revoke approval for pyramiding.

Re: PenFed really is conservative and follows strict rules

takeshi74 — Fri, 21 Mar 2014 14:10:47 GMT

@jesseh wrote:
All csr's tell me every time I speak to them that penfed is a very conservative lender

Most here would tell you that as well.

@grinlikechelsea wrote:
But they are very generous if you get approved!

My highest CL is with PenFed.

Re: PenFed really is conservative and follows strict rules

jesseh — Fri, 21 Mar 2014 17:05:05 GMT

Were you pyramiding?

Re: PenFed really is conservative and follows strict rules

B335is — Fri, 21 Mar 2014 17:07:40 GMT

In my case I had quite a few new accts. My overall debt decreased nearly $20k in the previous 12 months.

Re: PenFed really is conservative and follows strict rules

navigatethis12 — Fri, 21 Mar 2014 18:39:56 GMT

When I applied it said that it was sent to an analyst for a limit of up to 37500, which I knew I wouldn't get. Anyway, I was then approved for 10,000 after about one day. I had quite a few recent inquiries and about five new accounts in three months. I asked for an increase after a few months and was denied solely for "pyramiding debt". I was also declined an automobile loan and second credit card for the same reason. So it's like I got lucky and got a really nice analyst to approve the first card and the other ones don't see it my way.

Re: PenFed really is conservative and follows strict rules

jesseh — Fri, 28 Mar 2014 20:37:11 GMT

For anyone who has no credit history this may be interesting

I was denied for the Initiator card for lack of credit history. (currently waiting for a responde on my resub)

Woah. If you are initiating to build credit you probably get denied for the initiator card.. (or secured, no real difference)

I just called and talked to CSR Amanda, she said penfed employees recently had a seminar and many employees don't understand people being denied for secured cards for lack of credit. It has been forwarded to management ('the ceo') and they may revise their lending policy.

Re: PenFed really is conservative and follows strict rules

Kenny — Fri, 28 Mar 2014 20:40:39 GMT

@navigatethis12 wrote:
When I applied it said that it was sent to an analyst for a limit of up to 37500, which I knew I wouldn't get. Anyway, I was then approved for 10,000 after about one day. I had quite a few recent inquiries and about five new accounts in three months. I asked for an increase after a few months and was denied solely for "pyramiding debt". I was also declined an automobile loan and second credit card for the same reason. So it's like I got lucky and got a really nice analyst to approve the first card and the other ones don't see it my way.

I've seen this before.. what does that mean exactly? That one doesn't pay in full each month? Or is building debt over time? Or has so much available credit and small amount of debt? LOL Seriously, I know I can google this and I will after this post, but I don't think I'll still fully understand it. (If I remember correctly, I've already looked this up but didn't fully understand it. -- obviously.)

Re: PenFed really is conservative and follows strict rules

jesseh — Fri, 28 Mar 2014 21:54:22 GMT

I would define pyramiding as getting new credit to get further into debt or to pay off other debts.

PenFed denies people for pyramiding when they're not

They also use the term when they think you already have enough credit, or when they think you've opened sufficient new accounts recently.

The idea is, when they see you are spreading debt over as many lines of credit you can get, you may not be able to pay all those debts. When spreading you debt over many cards you report a low util, but you may not be able to pay it back.

To avoid getting those clients penfed denies applicants who show signs of that

Re: PenFed really is conservative and follows strict rules

Hockeyplayrr — Fri, 28 Mar 2014 22:24:34 GMT

@jesseh wrote:
Were you pyramiding?

Through their eyes I could see it. I did have quit a few new lines that year but I wasn't carrying balances and always PIF on all of them.