@Anonymous wrote:I'm considering applying for the AOD credit card, but want to know what other people's experiences were who might share my background. Had a bad experience applying for a card w/ SDFCU so I'm a bit hesistant to go through the motions with another small credit union.
I'm looking at multiple cards (cashback) that don't have FTFs and no annual fee, and so far this is the best thing I can find.
Happy to provide more info but I'll give this:
770 Transunion
764 Equifax
Multiple credit cards w/ credit limits ranging from $5k to $15k (although I never use the full credit limits, but some of my cards include Citi Double Cash,, Chase Amazon, Discover, Cash+)
Annual income around 46k
Pay on time in full 100% of the time.
Only 1 hard inquiry that was from 2/24/2020
Thanks for the insight.
What caused the bad expierence last time? Was it an approval process issue, or an issue on the banks end? What makes you want to use a smaller credit union?
Also, is their 3% cash back the card you are considering?
Interesting, 3% straight cash back on everything is pretty good. Granted, you can probably beat that if you spend a lot in certain categories on certian cards (Amex BCP for gas and groceries, and Disco IT for 5% rotaters). I do see a lot of people pretty big on credit unions, I myself do not have a ton of expierence with them. Is the big draw just good CS?
@Anonymous wrote:Not self employed.
Student loans currently in covid forberance, $207/monthly set to resume in October
DTI: Probably less than 1-2% - I pay all my credit cards on time in full and don't carry a balance, no other loans.
Those are indeed Credit Karma scores. Discover Fico Score 8 says 812.
Those were excellent questions that @coldfusion asked and I was thinking the same thing.
- AOD FCU prefers "guaranteed" stable income sources; some of our members who have applied as 1099 contract employees, self-employed, or who have a large portion of their income from less-consistent commissions or bonuses have had their effective income assumptions reduced in the underwriting calculations.
- AOD FCU has been known to be sensitive to student loan debt and they also conservatively-disregard the Income Driven Repayment (IDR) plan numbers. You mentioned earlier that income is $46K and repayment after the forbearance will be $207 monthly. If that $207 is income-based, they may recalculate based on a non-income based repayment estimate.
- AOD FCU, like many credit unions, is sensitive to overall debt-to-income numbers to make sure borrowers are able to safely repay their debts.
I'll also note that AOD FCU pulls an older FICO model (EQ-5) normally used more in mortgage underwriting. The EQ-5 scores are often significantly lower than the more-commonly used FICO 8/9 scores we mention on My Fico. In the original AOD FCU approval thread, it wasn't uncommon for members to find their EQ-5 was 40 to 80 points lower than FICO 8/9. With this in mind, your TU/EQ 770/764 scores may correlate to something around 690 to 730 for their underwriting purposes. If the Discover Fico 8 is more accurate, you're still looking at possibly 730 to 770. From my recollection from the original mega-thread, those are probably good enough for approval, though, as long as the above income and debt assumptions don't raise concerns. We had approvals with EQ-5's in the upper 600's.
