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NFCU Disappointment

frugal23
Valued Member

NFCU Disappointment

Hello Everyone,

My story begins here.

I initially started my membership with NFCU back in 2011. Didn't fully utilize my account as USAA was my main bank at the time.

Fast forward to August 2019, reinstated my membership with full activity nice savings/checking (father is Army veteran), added my DH as a member as well. We have no other products with NFCU at this time.

We have an auto loan since Nov 2018 through Cap 1 at 12.9% (2 months ahead on payments) we've been itching to get refi'd since July. We have quite a few inquiries trying to get this accomplished (some approvals at nearly same rate, some denials). Everything else is great, no lates showing since 2015 on any report of ours. We have Cap 1 QS; Discover IT; Wayfair; cc charge accounts since BK's and all paid on time. Utilization currently at 27%. DTI defintely can't be an issue here.

Scores as of 10/28 (FICO 8): DH: EQ:688 TU 637 EX:676--Mine: EQ:656 TU:655 EXP: 641

He has BK7 discharged 3/2018

I have BK13 dismissed  2/2018

We decided last night to give NFCU a try and see if we could refi with them. 2017 model 22k miles (wanted 36-48 month term).

DH would be Primary & I secondary as it is on Cap 1 loan.

NOT!

Received the decline email this morning. I was in total awe!

Should I recon this? Do i call to do this or via secure messages?

Or should I wait for the explanation to come in the mail before attempting reconsideration?

What could be the reasoning for this?

Any & all info & guidance would be greatly appreciated.

 

BK 13 DM'D 2/2018
Personal Credit acquired since BK=$41,800:
11/2018 Cap1 QS (AU): $2000
07/2019 Discover IT (AU): $2800
03/2020 NFCU MR Amex (AU): $19000
09/2019 Wayfair: $6500
09/2019 Overstock: $850
06/2019 Mission Lane Visa: $800
10/2019 NFCU Secured (Joint)-{cov to CR Visa w/$2k}:
10/2019 NFCU CR: $10,000
FICO 8 (as of 04/8/21):
EQ: 712
EXP: 704
TU: 705
MMS EQ 5: (692)me & DH 722
TU 4 (691) me & DH 714
EXP 2: (693) & DH 699
EXP 3: (687) & DH 695
28 REPLIES 28
CreditSweeper
Established Contributor

Re: NFCU Disappointment

If I had to guess, the reason is a rather fresh BK on both yours and DH's reports. They're under 1 year old. 

If I had to guess, you'll have little luck at a recon. I think you'll have to hold steady for now and revisit the refinance attempt down the road. 

Personal Credit -
AMEX: Platinum, Gold, Green, Blue Cash Preferred
PNC: Cash Rewards, Points
BOA: Cash Rewards
NFCU: Flagship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Goldman Sachs: Apple Card
BBVA: Clear Points
FNBO: Rewards
Store Cards: Target, Macy’s



Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Synchrony: Lowes
Message 2 of 29
frugal23
Valued Member

Re: NFCU Disappointment


@CreditSweeper wrote:

If I had to guess, the reason is a rather fresh BK on both yours and DH's reports. They're under 1 year old. 

If I had to guess, you'll have little luck at a recon. I think you'll have to hold steady for now and revisit the refinance attempt down the road. 


Wow! 

They are 17 months DC'd right now.

Each will be 2 years DC'd in Feb & March 2020 respectively.

I read on the forums in my posts that 1 year post BK DC is the minimum.

Has that changed?

BK 13 DM'D 2/2018
Personal Credit acquired since BK=$41,800:
11/2018 Cap1 QS (AU): $2000
07/2019 Discover IT (AU): $2800
03/2020 NFCU MR Amex (AU): $19000
09/2019 Wayfair: $6500
09/2019 Overstock: $850
06/2019 Mission Lane Visa: $800
10/2019 NFCU Secured (Joint)-{cov to CR Visa w/$2k}:
10/2019 NFCU CR: $10,000
FICO 8 (as of 04/8/21):
EQ: 712
EXP: 704
TU: 705
MMS EQ 5: (692)me & DH 722
TU 4 (691) me & DH 714
EXP 2: (693) & DH 699
EXP 3: (687) & DH 695
Message 3 of 29
CreditSweeper
Established Contributor

Re: NFCU Disappointment

Wow!  Sorry, I glanced and made a mistake. Less than 2 years. 

Wait for the letter and see what it says. 

good day!

 

Personal Credit -
AMEX: Platinum, Gold, Green, Blue Cash Preferred
PNC: Cash Rewards, Points
BOA: Cash Rewards
NFCU: Flagship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Goldman Sachs: Apple Card
BBVA: Clear Points
FNBO: Rewards
Store Cards: Target, Macy’s



Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Synchrony: Lowes
Message 4 of 29
frugal23
Valued Member

Re: NFCU Disappointment

Ok.

I called & got a supervisor within the dept.

Reviewed to see if anything incorrect or missing from inital application (would only verify my info, not DH).

He said they would like to appeal with "new information" coming in for reconsideration (ie: correction made on credit report etc).

Since the app was submitted yday, no noticable changes would have likely taken place. 

He said he didn't have any additional info as to why it was denied except that it was "credit based".

What score/ credit details are they looking for?! Geez

Advised to wait for letter in mail for more details....

I will compare what they send as to why against my report & follow up from there I guess...

BK 13 DM'D 2/2018
Personal Credit acquired since BK=$41,800:
11/2018 Cap1 QS (AU): $2000
07/2019 Discover IT (AU): $2800
03/2020 NFCU MR Amex (AU): $19000
09/2019 Wayfair: $6500
09/2019 Overstock: $850
06/2019 Mission Lane Visa: $800
10/2019 NFCU Secured (Joint)-{cov to CR Visa w/$2k}:
10/2019 NFCU CR: $10,000
FICO 8 (as of 04/8/21):
EQ: 712
EXP: 704
TU: 705
MMS EQ 5: (692)me & DH 722
TU 4 (691) me & DH 714
EXP 2: (693) & DH 699
EXP 3: (687) & DH 695
Message 5 of 29
VanderSnoot
Established Contributor

Re: NFCU Disappointment

Fingers crossed for you.

Message 6 of 29
Guyatthebeach
Valued Contributor

Re: NFCU Disappointment

frugal23,

 

I'm sorry to hear that you got declined. Judging from what I have read and personally experienced myself with NFCU, they are tighting up their lending practices. I'm curious to see what the letter says.

 

By the way, was your ch13 BK discharged or dismissed?

 

Guyatthebeach

Message 7 of 29
frugal23
Valued Member

Re: NFCU Disappointment

dismissed, i was pondering conerting it to ch7, but realized no need to. I could payoff the my old debts with financial restructuring and aggressive credit rebuilding.

 


@Guyatthebeach wrote:

frugal23,

 

I'm sorry to hear that you got declined. Judging from what I have read and personally experienced myself with NFCU, they are tighting up their lending practices. I'm curious to see what the letter says.

 

By the way, was your ch13 BK discharged or dismissed?

 

Guyatthebeach


 

BK 13 DM'D 2/2018
Personal Credit acquired since BK=$41,800:
11/2018 Cap1 QS (AU): $2000
07/2019 Discover IT (AU): $2800
03/2020 NFCU MR Amex (AU): $19000
09/2019 Wayfair: $6500
09/2019 Overstock: $850
06/2019 Mission Lane Visa: $800
10/2019 NFCU Secured (Joint)-{cov to CR Visa w/$2k}:
10/2019 NFCU CR: $10,000
FICO 8 (as of 04/8/21):
EQ: 712
EXP: 704
TU: 705
MMS EQ 5: (692)me & DH 722
TU 4 (691) me & DH 714
EXP 2: (693) & DH 699
EXP 3: (687) & DH 695
Message 8 of 29
leonel9
Frequent Contributor

Re: NFCU Disappointment

I'm confused ... I assumed you converted from CH13 to CH7. If that is not the case, could you verify the status of your CH13 and CH7 respectively?

 

As far as NFCU's guidelines, as of about two years ago, a minimum of six months post-discharge rebuild was required for a loan. Rebuid is/was considered 3+ tradelines with at least 6 months of payment history.

 

NFCU also uses a custom score as a primary scoring method. This utilizes your FICO score (typically equifax for auto loans) as well as other factors. Assuming you have no derogatory accounts at Navy Federal, a common reason for a low custom score is a short period with your current employer (e.g. less than a year). 

 

At this point we can only speculate the reasons for your denial. If you are unable to obtain them over the phone or online, then I would wait until you review the denial letter for advice on how to proceed.

Message 9 of 29
leonel9
Frequent Contributor

Re: NFCU Disappointment

One other thought: If you have the cash to afford it, pay down your credit cards so your util ratio is less than 10%, and ensure the lower balances report before applying for an auto loan. This is so you have the highest FICO possible. 

 

 

Message 10 of 29
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