topic Re: Another PenFed Question in Credit Cards

Another PenFed Question

Scamp — Mon, 02 Jun 2008 20:33:33 GMT

I joined PenFed last week and was turned down for their Cash Rewards CC when I decided to try for it. Stayed turned-down even after attempted recon.

Reasons for denial were my short credit history (2 years overall, ~1 year AAoA) and being 'an Egyptian' - the 'pyramiding debt' thing they nail you with if you have recently-opened accts (I had 2).

In addition to me sitting on my hands, not apping for anything else, keeping util on current cards down, etc., for the next 6 mos. to a year, would closing my former bank's cc (mad at them for a rate-jacking and subsequent obnoxious behavior) also help reduce the appearance of 'pyramiding debt' and improve my chances at approval when I try again down the line (PenFed's is the last cc I want to get)?

Or doesn't it work that way?

Also, does anyone have a feel for whether or not my overall credit history will be old enough at 3 years to stop being an obstacle, with them?

Thanks in advance for any info.

Re: Another PenFed Question

smallfry — Mon, 02 Jun 2008 21:13:20 GMT

Try again in 6 months. Don't close anything you hadn't planned to close before the Penfed denial. Sorry but nearly everyone is Egyptian at some point in time.

Re: Another PenFed Question

Scamp — Mon, 02 Jun 2008 23:19:29 GMT

Thanks, smallfry - I planned on just re-apping as you suggested, though I was going to wait a year due to my short credit history issue with them.

I just didn't know if closing that one cc might help out with de-Egyptianizing me or not, and whether or not my credit history will still be too short in their eyes, even at a year - hoping someon else can chime in with more info.

Thanks again for responding.

Re: Another PenFed Question

haulingthescoreup — Mon, 02 Jun 2008 23:28:06 GMT

Part of the pyramiding debt thing is their perception that you have more credit, but that you aren't paying down your total balances due. They want to see those balances go down, not just the util. Give it six months, and reduce your total balances, and then try again .

FICO doesn't keep track of your balances, but I'll betcha that PenFed hangs on to that initial EQ pull and compares when you try again.

Re: Another PenFed Question

Scamp — Mon, 02 Jun 2008 23:30:22 GMT

haulingthescoreup wrote:
Part of the pyramiding debt thing is their perception that you have more credit, but that you aren't paying down your total balances due. They want to see those balances go down, not just the util. Give it six months, and reduce your total balances, and then try again .

FICO doesn't keep track of your balances, but I'll betcha that PenFed hangs on to that initial EQ pull and compares when you try again.

Thanks, HTSU - good to know more about 'pyramiding'! My only really significant balance WILL be significantly reduced by the time I try again.

Any thoughts on my young credit file still being a problem, if I try again as soon as 6 months? Really am hoping to cover all bases before apping again with them...

Re: Another PenFed Question

haulingthescoreup — Mon, 02 Jun 2008 23:38:38 GMT

I honestly don't know. You might be our guinea pig, er, explorer on that one! I don't remember anyone here with a short history app'ing for their card. Doesn't mean that they don't do it; it's just that we haven't seen it here.

Since you're now a member, with a share (savings) account, you might want to do some sort of automatic direct deposit to the share account from each paycheck, so that they get comfortable with the idea that you're employed, and that you have some disposable income that could be used for paying CC bills. I'm just picking that out of the air though.

The thing to remember about CU's, no matter how big they are, is that they are membership organizations, with the members pooling their financial resources to extend credit to one another. Their employees are responsible for protecting the financial stability of the CU. So anything that you can do to reinforce the impression that you will be a responsible member of this team ought to help. At least some!

Re: Another PenFed Question

jaxstraw — Mon, 02 Jun 2008 23:46:53 GMT

That would be a great line in a CU recon !!! The member helping each other pooling the resources, wow !
Actually the whole last paragraph might do in some point of a recon letter.

Jax

Message Edited by jaxstraw on 06-02-2008 04:46 PM

Re: Another PenFed Question

Scamp — Mon, 02 Jun 2008 23:52:58 GMT

haulingthescoreup wrote:
I honestly don't know. You might be our guinea pig, er, explorer on that one! I don't remember anyone here with a short history app'ing for their card. Doesn't mean that they don't do it; it's just that we haven't seen it here.

Since you're now a member, with a share (savings) account, you might want to do some sort of automatic direct deposit to the share account from each paycheck, so that they get comfortable with the idea that you're employed, and that you have some disposable income that could be used for paying CC bills. I'm just picking that out of the air though.

The thing to remember about CU's, no matter how big they are, is that they are membership organizations, with the members pooling their financial resources to extend credit to one another. Their employees are responsible for protecting the financial stability of the CU. So anything that you can do to reinforce the impression that you will be a responsible member of this team ought to help. At least some!

I don't mind being the guinea pig, if I have to. lol. Happy to serve my fellow forum feople.

Sadly, my employer WILL NOT do direct deposit. However, as soon as I get everything sorted out, all paperwork and such received, I'm planning to do some kind of automatic deposit at least monthly with them, so hopefully that'll help.

Thanks for your input - invaluable as always.

Re: Another PenFed Question

haulingthescoreup — Tue, 03 Jun 2008 00:00:51 GMT

@jaxstraw wrote:

That would be a great line in a CU recon !!! The member helping each other pooling the resources, wow !

Actually the whole last paragraph might do in some point of a recon letter.

Jax

Take it, and welcome! I love that whole "we're all in this together" spirit of CU's. You can tell that I'm a child of my generation!

@scapegrace13 wrote:

Sadly, my employer WILL NOT do direct deposit. However, as soon as I get everything sorted out, all paperwork and such received, I'm planning to do some kind of automatic deposit at least monthly with them, so hopefully that'll help.

Whoops, hit enter too soon.

I would think that that would help, and you also might want to call and ask a CST what they'd like to see. I've read on other PenFed threads that they're very happy to work with people, telling them what they might want to work on to qualify. HTH

Message Edited by haulingthescoreup on 06-02-2008 05:00 PM

Re: Another PenFed Question

smallfry — Mon, 02 Jun 2008 23:58:40 GMT

You can do an ACH into Penfed from your bank account(s).

Re: Another PenFed Question

Scamp — Tue, 03 Jun 2008 00:01:03 GMT

smallfry wrote:
You can do an ACH into Penfed from your bank account(s).

Yep, that's what I was thinking of - couldn't think what it was called - blonde moment! Thanks, sf!

Re: Another PenFed Question

Scamp — Tue, 03 Jun 2008 14:06:44 GMT

haulingthescoreup wrote:
Whoops, hit enter too soon.

I would think that that would help, and you also might want to call and ask a CST what they'd like to see. I've read on other PenFed threads that they're very happy to work with people, telling them what they might want to work on to qualify. HTH

Message Edited by haulingthescoreup on 06-02-2008 05:00 PM

Only just now saw this other part of your post, HTSU - I actually have tried talking with 2-3 CSTs about my situation, including BEFORE I apped, which was partly why I went ahead and gave it a shot - got the impression from that one that my chances were actually pretty good for getting approved for the cc!

Since getting denied, the others I've spoken to, of whom I've asked specific questions like the ones in my post, just give me vague, canned answers like 'Our loan officers take many factors into consideration', "Every application is different", and other massively unhelpful responses.

If anyone's had any luck actually getting one of their loan officers on the phone to get more specific info about qualifying for their cc's, I'd sure appreciate knowing how - I'd dearly like to get hold of one and get the kind of info you've suggested.

And - sorry to be dense here - but what is HTH? That one's going right over my head!

Thanks again, HTSU.

Re: Another PenFed Question

haulingthescoreup — Tue, 03 Jun 2008 16:21:11 GMT

HTH = hopes that helps, which it didn't.

Re: Another PenFed Question

Scamp — Tue, 03 Jun 2008 16:30:59 GMT

haulingthescoreup wrote:
HTH = hopes that helps, which it didn't.

*slaps forehead* Duh. Thanks for the translation. lol.

And you're always a help, HTSU.