topic Re: Helping a sibling establish credit with nfcu in General Credit Topics

Helping a sibling establish credit with nfcu

kugel — Fri, 01 Feb 2019 02:57:54 GMT

I am applying 2 cards for my sibling that has zero credi
t since I am a member with navy if I add him to a card will this help him in the long run getting approved also or it’s not a good idea since this card is a 25k and they will look at it as he has allot credit already with them like max exposure ?
I am planing to get him in as a sibling status to be a member

Re: Helping a sibling establish credit

Anonymous — Fri, 01 Feb 2019 02:51:24 GMT

I can't really comment on the product you mentioned above, but one common suggestion on this forum is to have someone with little to no credit apply for secured cards through Capital One and Discover. After 6 months FICO scores will be generated and shortly after the option to unsecure one or both of them will become available assuming sound credit behavior (no late payments, utilization kept low). At about the time both accounts turn 1 year in age, a 3rd card could be applied for from a company that is alright with thinner files, such as Amex.

Re: Helping a sibling establish credit

DU556 — Fri, 01 Feb 2019 03:27:12 GMT

Make sure you can limit the amount they can charge on the card. Or may be just add them without ever giving them a card.

Re: Helping a sibling establish credit

kugel — Fri, 01 Feb 2019 02:58:34 GMT

Exactly what I planned

Re: Helping a sibling establish credit

HeavenOhio — Fri, 01 Feb 2019 03:07:23 GMT

Just so you're not surprised by this, Capital One has been telling customers that their secured cards are no longer unsecuring.

I don't see any harm in adding the Navy AU limit. I don't recall anyone reporting denials based on high limit AU cards. Of course, there'd be other factors to consider. It needs to be practical to keep utilization in check on that card. And ideally, the card is more than two years old (and not an AMEX issued by AMEX; the NFCU AMEX would be fine).

It should also be noted that banks will treat AUs differently. In some cases, they help. In other cases, they're ignored. The only way I've seen them treated negatively by a lender is Chase counting them against 5/24.

I'd suggest that NFCU should be the first place to discuss a card of his own.

Re: Helping a sibling establish credit

kugel — Fri, 01 Feb 2019 04:13:51 GMT

He actually applied for the rebuilding capital one cc just before
and it came back with the 10 days message I would think they would decline and offer only a secured cc but I am surprised he got this message
from my own personal experience wen I used to applie with them I got always this message and it ended to be a approval

Re: Helping a sibling establish credit

kugel — Fri, 01 Feb 2019 04:15:20 GMT

What is 5/24 if I may ask ?

Re: Helping a sibling establish credit

HeavenOhio — Fri, 01 Feb 2019 04:34:47 GMT

5/24 is a Chase rule that results in denials if one has acquired five or more cards in the past 24 months. A lot of banks are sensitive to new accounts, but Chase is more specific about it. AUs count toward 5/24; loans do not.

It's important to think about it because your sibling will likely be positioned for a Chase card (if he wants it) when his oldest card reaches a year in age.

Re: Helping a sibling establish credit with nfcu

CreditInspired — Fri, 01 Feb 2019 12:02:34 GMT

OP
Since you’re a NFCU Member, just sponsor your sibling. He/she can open a checking and savings account. Then have sibling apply for NFCU secured CC.

https://www.navyfederal.org/loans-cards/credit-cards/nrewards-secured/?cmpid=PPC%7CGOOGLE%7C%7C%7C%7Cnfcu%20secured%20credit%20card%7C%7CBRANDPLUSPRODUCTPROSPECT%7CEXACT%7C&ds_rl=1262181&gclid=Cj0KCQiA-c_iBRChARIsAGCOpB06MjllnG54NuV1x8TnG8TVY2f58OJG7HTEXS8f0t1dEsU76YPSR8UaAjTtEALw_wcB&gclsrc=aw.ds

Can’t go wrong with NFCU!

Re: Helping a sibling establish credit with nfcu

kugel — Fri, 01 Feb 2019 15:21:39 GMT

Credit inspired
Just for Sponsoring him to open a checking or savings account will this be a credit pull?

I’m trying to avoid a secured credit card and I will be adding him as a authorized user on my use navy card witch is 3 years old and with the capital one that he will be approved hopefully that he apped yesterday,
in six or 8 months he will be able to get a regular navy card

What is the fastest route to gat good credit lines fast the secured card or with adding him as a authorized user it’s the age that will help also plus looks like he gets a cap one rebuilding regular card ?

Re: Helping a sibling establish credit with nfcu

CreditInspired — Fri, 01 Feb 2019 16:38:32 GMT

I’m not sure Kugel about the HP it’s been so long since I’ve been a member. But I would think a CC in one’s own name vs. an AU would look better. After all, as an AU, they’re not responsible for the bill. Yep, AU may raise scores but one needs own credit history, IMO.

Re: Helping a sibling establish credit with nfcu

kugel — Fri, 01 Feb 2019 16:53:59 GMT

Ok if he does the secured and it doesn’t get graduated after 6 months can he always go head and apply for a regular cc with nfcu before it’s graduted ? Or nfcu has a rule u need first to wait to get unsecured

Re: Helping a sibling establish credit with nfcu

CreditInspired — Fri, 01 Feb 2019 21:27:49 GMT

Here’s my suggestion. Have him open a savings with maybe like 200-300 and apply for for the NFCU platinum. Ask before applying if it’s not approve, will they use the same HP for the secured CC. I believe in 6 mos if there are no problems, he will graduate and deposit released.

GL

Re: Helping a sibling establish credit with nfcu

kugel — Sun, 03 Feb 2019 03:20:19 GMT

Thanks
If he opens a membership can he give a credit card number to do the first deposit or it needs a checking Acct ?
Also they use same pull of the membership to the cc ?

Re: Helping a sibling establish credit with nfcu

Anonymous — Sun, 03 Feb 2019 03:49:34 GMT

@kugel wrote:
Thanks
If he opens a membership can he give a credit card number to do the first deposit or it needs a checking Acct ?
Also they use same pull of the membership to the cc ?

There is no HP for membership, just for CC and yes you can fund the account with a card (I would use a debit card so it’s not a cash advance risk although I just checked my checking statement and they billed it as “NFCU membership fee”).

Re: Helping a sibling establish credit with nfcu

QueenJ — Sun, 03 Feb 2019 05:44:56 GMT

OP here’s how I helped my brother establish his credit with navy within one year. He had no credit to speak of and when he first applied to navy, he was turned down. We then went into plan B mode and he got credit approved with credit one and cap one. They were low SLs but in the first six months I told me to uiltize them frequently but always PIF since they’re low limits and you don’t want to be carrying balances having low limits. When we reached the end of the six months, he had earned a credit score in the 600s, so I had him then re-apply for a navy CC. He was approved for $500 CR and was pretty bummed but I told him have faith in the process and keep up the good work to NEVER BEING LATE on a payment - no matter what. Not to mention, I re-enforced the fact that navy will take care of you if you do right by them. After another six months go by, he applies for CLI on CR and gets a bump to $800-1000, but he really gets his socks knocked off when applies for the platinum card and get a $15000 SL; he was grinning from ear to ear lol. Yeah, navy is awesome!!! And now, he see that.

Re: Helping a sibling establish credit with nfcu

kugel — Sun, 03 Feb 2019 16:26:57 GMT

Queenj thanks
Wen he was first turned down was it for the membership ? Or just the cc
Do u need credit if applying just for membership?
I add him on 2 good cards with 3 years history so waiting for it to show up and that will hopefully boost a score
The cap 1 he got to start was a secured card ?

Re: Helping a sibling establish credit with nfcu

Gmood1 — Sun, 03 Feb 2019 16:49:45 GMT

This is how I've done it for several family members with Navy.
I added each of them to my oldest Navy CC as an AU with no CC issued.
I also had each to join Navy.
SO obtained a $15k plus CC on her first app with a 602 TU.

Step daughter was approved financing for her first auto loan with best rate through Navy a year after adding her to a couple of my CCs as a AU.

Cousin got his first big boy CC $15K SL from Navy with scores just under 600. He is an AU on the same CC as the SO.

Recently added a 18 year old nephew to my oldest Navy CC along with Capital One. Basically gifted him 12 years of perfect payment history. We are waiting for his scores to activate. He should also be good to go when he applies for his first auto loan in 5 months.
Did the same for my oldest daughter.
She also now has a new auto financed through Navy Federal. With the best rate.

The AU adding works. I know this without any doubts, as I've done it multiple times for my family.

Re: Helping a sibling establish credit with nfcu

kugel — Sun, 03 Feb 2019 17:05:41 GMT

Gmood1
How long afte adding was it for the one who got the 15k approval ? And did he have other credit besides the authorized cards?

Re: Helping a sibling establish credit with nfcu

Gmood1 — Sun, 03 Feb 2019 17:20:39 GMT

Cousin had only a secured $200 Capital One and a bunch of derogs.
Off the top of my head. Maybe six months after adding him, he was able to get his own CC through them.

Apparently their computer doesn't recognize the AU accounts as AU accounts. It just sees paid and on time accounts. All of them were instant approvals. No going through UW for approval.

Step daughter was brand new to credit. And only had SSL and 3 CCs I had her to grab after her scores generated. With less than 1 year of her own credit history along with AU accounts from me. Her auto loan was an instant approval.
Navy, Discover and USAA approved her for CCs with six months of history generated from the AU accounts I added her to.