NFCU Disappointment

[Anonymous]

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.

[Anonymous]

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. 

[Anonymous]

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@Anonymous 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. 

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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?

[Anonymous]

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

Wait for the letter and see what it says. 

good day!

[Anonymous]

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...

[VanderSnoot]

Fingers crossed for you.

[Guyatthebeach]

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

[Anonymous]

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.

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@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

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[Anonymous]

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.

[Anonymous]

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.