topic Re: NFCU Appeal Process in Credit Cards

NFCU Appeal Process

ItnStln — Sun, 30 Mar 2014 01:08:30 GMT

I recently applied for the NFCU cashRewards Visa card and got declined. I was told that the reason was for "Proportion of balances to credit limits too high on revolving accts." This is almost impossible as I have about $11,500 in credit limits and $2,500 in usage. Percentage wise this is 21.74%, well below the recommended 30%. I had a bankruptcy in 2012, but NFCU didn't bat an eye in 2013 when they gave me the nRewards MC with a $4,000 limit. The online message said that I will get a letter stating with the appeal process. Does anyone by chance know the procedures? Is it a good idea to use NFCU as my primary bank if I am trying to get a credit card through them? I have heard mixed reviews on this so that is why I am asking,

Re: NFCU Appeal Process

Creditaddict — Sun, 30 Mar 2014 08:04:04 GMT

@ItnStln wrote:
I recently applied for the NFCU cashRewards Visa card and got declined. I was told that the reason was for "Proportion of balances to credit limits too high on revolving accts." This is almost impossible as I have about $11,500 in credit limits and $2,500 in usage. Percentage wise this is 21.74%, well below the recommended 30%. I had a bankruptcy in 2012, but NFCU didn't bat an eye in 2013 when they gave me the nRewards MC with a $4,000 limit. The online message said that I will get a letter stating with the appeal process. Does anyone by chance know the procedures? Is it a good idea to use NFCU as my primary bank if I am trying to get a credit card through them? I have heard mixed reviews on this so that is why I am asking,

You can send a secure message and ask that they split off $1k or more of your current card to open the cash rewards.

Re: NFCU Appeal Process

ItnStln — Sun, 30 Mar 2014 15:27:20 GMT

Thanks Creditaddict! I will give that a shot if the appeal is denied. I did get my free annual credit report and noticed that some family members' cards keep popping up on my credit report. Can this negatively impact me? Also, are they allowed to use my delinquencies that were dischrged in bankruptcy? I am just trying to get as much information as possible for when I do get my letter from NFCU I can appeal it. I wasn't wanting to split off my credit limit to get another card as I want to increase my available credit.

Re: NFCU Appeal Process

Anonymous — Sun, 30 Mar 2014 15:43:34 GMT

A couple of things here.

1. FICO scoring looks not only at overall utilization, but utilization per card and proportion of cards with balances. So it might be worth asking how that 21.74% is distributed. One mistake people make is to max out low-CL cards.

2. If family members' cards pop up, is there some AU angle that is hurting you?

Re: NFCU Appeal Process

ItnStln — Sun, 30 Mar 2014 16:09:58 GMT

@Anonymous wrote:
A couple of things here.

1. FICO scoring looks not only at overall utilization, but utilization per card and proportion of cards with balances. So it might be worth asking how that 21.74% is distributed. One mistake people make is to max out low-CL cards.

2. If family members' cards pop up, is there some AU angle that is hurting you?

All but three cards carry a zero balance. My NFCU nRewards has a $4,000 limit and a balance of almost $2,200. I had to purchase some stuff for school. My Barclays card has a limit of $2,000 and a balance close to $150, and my PayPal Smart Connect has a balance of $85 with a limit of $300. I always make more than the minimum payment, even on my car. I used to be an AU on my parents' AMEX cards when I was younger. prior to my bankruptcy, at my request as I didn't want to harm their credit I was removed as an AU. The balances are relatively high on those cards. Is it possible that is what influenced the decision?

Re: NFCU Appeal Process

Creditaddict — Sun, 30 Mar 2014 16:30:58 GMT

@ItnStln wrote:
@Anonymous wrote:
A couple of things here.

1. FICO scoring looks not only at overall utilization, but utilization per card and proportion of cards with balances. So it might be worth asking how that 21.74% is distributed. One mistake people make is to max out low-CL cards.

2. If family members' cards pop up, is there some AU angle that is hurting you?

All but three cards carry a zero balance. My NFCU nRewards has a $4,000 limit and a balance of almost $2,200. I had to purchase some stuff for school. My Barclays card has a limit of $2,000 and a balance close to $150, and my PayPal Smart Connect has a balance of $85 with a limit of $300. I always make more than the minimum payment, even on my car. I used to be an AU on my parents' AMEX cards when I was younger. prior to my bankruptcy, at my request as I didn't want to harm their credit I was removed as an AU. The balances are relatively high on those cards. Is it possible that is what influenced the decision?

it's being at over 50% maxed on your navy card and seeking more credit from navy... they can be very leinent for some profiles but you say school so income might be smaller?

How long have you had your current Navy card again? you might have an easier time getting a sp cli on current then a new one... but like I said I would move $1k over to new credit card and then in 3 months ask for CLI and hopefully you get a sp bump.

Re: NFCU Appeal Process

ItnStln — Sun, 30 Mar 2014 18:03:52 GMT

@Creditaddict wrote:
@ItnStln wrote:
@Anonymous wrote:
A couple of things here.

1. FICO scoring looks not only at overall utilization, but utilization per card and proportion of cards with balances. So it might be worth asking how that 21.74% is distributed. One mistake people make is to max out low-CL cards.

2. If family members' cards pop up, is there some AU angle that is hurting you?

All but three cards carry a zero balance. My NFCU nRewards has a $4,000 limit and a balance of almost $2,200. I had to purchase some stuff for school. My Barclays card has a limit of $2,000 and a balance close to $150, and my PayPal Smart Connect has a balance of $85 with a limit of $300. I always make more than the minimum payment, even on my car. I used to be an AU on my parents' AMEX cards when I was younger. prior to my bankruptcy, at my request as I didn't want to harm their credit I was removed as an AU. The balances are relatively high on those cards. Is it possible that is what influenced the decision?
it's being at over 50% maxed on your navy card and seeking more credit from navy... they can be very leinent for some profiles but you say school so income might be smaller?
How long have you had your current Navy card again? you might have an easier time getting a sp cli on current then a new one... but like I said I would move $1k over to new credit card and then in 3 months ask for CLI and hopefully you get a sp bump.

I had a feeling that it was either the 50% with NFCU and/or the AMEX that I was an AU on. I am in school, but I also work full time, making close to $30,000 (usually more with OT). I just needed a laptop and books, so I used my card to help build credit. I got my NFCU nRewards MC a little over a year ago. I haven't asked for a CLI as I wasn't sure if ir was an SP or HP and didn't want to risk an HP. Should I ask for a CLI to say $6,500? How leinent are they with CLIs? Since my bankruptcy discharge I have never been late on anything, and always make more than the minimum payments. I am just trying to weigh my options out and see which will be beneficial.

Re: NFCU Appeal Process

Creditaddict — Sun, 30 Mar 2014 19:33:54 GMT

I would read through the thread for NFCU cli process and what you should do when requesting cli with them.
But I would bring your util on that card down to under $1k first

Re: NFCU Appeal Process

ItnStln — Sun, 30 Mar 2014 20:34:30 GMT

@Creditaddict wrote:
I would read through the thread for NFCU cli process and what you should do when requesting cli with them.
But I would bring your util on that card down to under $1k first

Would you recommend carrying a balance at all on that card? Thanks for your good advice, creditaddict.

Re: NFCU Appeal Process

Creditaddict — Sun, 30 Mar 2014 22:22:50 GMT

Never carry credit balances if you can pay off!
If you need to though navy is probably your best bet to carry.
But the goal is pay no interest

Re: NFCU Appeal Process

ItnStln — Mon, 31 Mar 2014 15:08:31 GMT

@Creditaddict wrote:
Never carry credit balances if you can pay off!
If you need to though navy is probably your best bet to carry.
But the goal is pay no interest

Thanks for confirming what I was already thinking, creditaddict! I plan to pay my nRewards card and my other card off within the next few weeks, then ask NFCU for a CLI. After six or eight months, I will re-apply for another NFCU card. In your professional opinion (you seem to know alot about this stuff, even more than some bankers I speak with!) should I even use that card at all or let it sit in a drawer? When I say use it at all, I mean use it to purchase gas once a month, then PIF. Thank you again for your good information!

Re: NFCU Appeal Process

Creditaddict — Mon, 31 Mar 2014 15:28:15 GMT

@ItnStln wrote:
@Creditaddict wrote:
Never carry credit balances if you can pay off!
If you need to though navy is probably your best bet to carry.
But the goal is pay no interest
Thanks for confirming what I was already thinking, creditaddict! I plan to pay my nRewards card and my other card off within the next few weeks, then ask NFCU for a CLI. After six or eight months, I will re-apply for another NFCU card. In your professional opinion (you seem to know alot about this stuff, even more than some bankers I speak with!) should I even use that card at all or let it sit in a drawer? When I say use it at all, I mean use it to purchase gas once a month, then PIF. Thank you again for your good information!

I'm a person that almost never uses cash and does not use a debit card ever so I use a credit card for all purchases. I happen to get paid weekly, so my 76 gas card and my capital one business card I pay weekly as my paycheck hits since the charges are all related to that paycheck.... That way I am able to show more use to the bank then if I paid cash or debit but I keep the balance paid off weekly so I don't get a statement at the end of the month and be like "oh, no, I forget I had that much gas purchases this month!"

Something like Mint.com or Personalcapital.com are free and can also be great tools to help you track your bills and your money to keep yourself on track with where you can cut back and what you have outstanding and set yourself alerts if you want too.

Re: NFCU Appeal Process

Anonymous — Mon, 31 Mar 2014 15:29:20 GMT

ItnStin - there is one frustration you may not be aware of too. While you read 30% utilization is ok... truth higher FICO Scores come with utilization under 10% for most people. While this does not necessarily affect your current situation keep this in the back of your mind. Truth, if your not seeking credit it is not a big deal but if you do, the lower utilization enhances your opportunities.