Applying to NFCU with young file

[SecondToLastDraftDodger]

Hi all!

Since my last post, I found out that I was eligible to join Navy Federal. I joined a week to ten days ago, with a checking and savings account with $4k between the two. A quick recap of my situation: my first card was a CFU opened in August, and I just recently opened a BCE that won't report until February 5. I also was on an AU account with a 20+ year history that was closed with perfect payment history.

I'm thinking about applying for the NFCU More Rewards card to begin building a relationship with Navy (eyeing a car loan at the end of this year or next year), and if I apply this month then both this inquiry and the Amex inquiry will age together. 

I read that Navy Federal pulls TU, so I got the report here on MyFico. Score is 801 with 1 inquiry (the Amex). A lot of that score is due to the AU age, which I've read Navy Federal's algorithm will ignore. 

So, the question is if it's a good idea to apply for the More Rewards card for the relationship with Navy, or is it better to sit tight and let the accounts I currently have report and age?

[SouthJamaica]

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@SecondToLastDraftDodger wrote:

Hi all!

Since my last post, I found out that I was eligible to join Navy Federal. I joined a week to ten days ago, with a checking and savings account with $4k between the two. A quick recap of my situation: my first card was a CFU opened in August, and I just recently opened a BCE that won't report until February 5. I also was on an AU account with a 20+ year history that was closed with perfect payment history.

I'm thinking about applying for the NFCU More Rewards card to begin building a relationship with Navy (eyeing a car loan at the end of this year or next year), and if I apply this month then both this inquiry and the Amex inquiry will age together. 

I read that Navy Federal pulls TU, so I got the report here on MyFico. Score is 801 with 1 inquiry (the Amex). A lot of that score is due to the AU age, which I've read Navy Federal's algorithm will ignore. 

So, the question is if it's a good idea to apply for the More Rewards card for the relationship with Navy, or is it better to sit tight and let the accounts I currently have report and age?

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I don't think that getting a credit card will enhance your opportunity for a car loan.

[sznthescore]

I concur with @SouthJamaica . I did get a credit card first (secured card), however, I got approved for an auto loan afterwards (May 2022), even though I still have sub-par credit.

I guess it all depends on the route you'd like to take. However, if you do get a credit card now, I would put at least 6 months in between the car loan app.

[SecondToLastDraftDodger]

Thank y'all for the replies.

What I've read gave me the impression that Navy Federal was a 'relationship bank', and they wanted to see product use and some history before they gave out large loan limits.

So, the idea was a credit card now would help give a year's worth of history, relationship, and product use before I applied for the loan. 

Have I misunderstood?

[Anonymalous]

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@SecondToLastDraftDodger wrote:

Hi all!

Since my last post, I found out that I was eligible to join Navy Federal. I joined a week to ten days ago, with a checking and savings account with $4k between the two. A quick recap of my situation: my first card was a CFU opened in August, and I just recently opened a BCE that won't report until February 5. I also was on an AU account with a 20+ year history that was closed with perfect payment history.

I'm thinking about applying for the NFCU More Rewards card to begin building a relationship with Navy (eyeing a car loan at the end of this year or next year), and if I apply this month then both this inquiry and the Amex inquiry will age together. 

I read that Navy Federal pulls TU, so I got the report here on MyFico. Score is 801 with 1 inquiry (the Amex). A lot of that score is due to the AU age, which I've read Navy Federal's algorithm will ignore. 

So, the question is if it's a good idea to apply for the More Rewards card for the relationship with Navy, or is it better to sit tight and let the accounts I currently have report and age?

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I had 1 personal card with 6 months of credit history and 1 AU card with a 20+ year history when I joined Navy Fed in late 2021. My TU was about 780, mostly due to that AU card. I opened basic checking and savings account, put maybe a couple thousand in them, and then applied for the More Rewards a few weeks later. They gave me more than $8K, then another $8K 3 months later, and another $8K 6 months after that. I stopped requesting CLIs at that point, because I don't need that much credit. At the year mark, they lowered my APR to the lowest possible for the card.

They are a relationship CU, but it doesn't seem that important if you have a clean file. And they were far more generous with a young/almost empty file like me than I would have expected, so I strongly suspect they counted the AU card.

[SecondToLastDraftDodger]

I went ahead and applied and they approved me, but only for $500.

I did recon, but they sent a message a few days later telling me to sit tight at $500 for three months.

Well, from the beginning of my credit journey in August, I think I've done ok. I got my three cards, building a relationship with Navy Federal, no wasted HPs.

I guess I'm done for awhile.

[Anonymous]

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@SecondToLastDraftDodger wrote:

I went ahead and applied and they approved me, but only for $500.

I did recon, but they sent a message a few days later telling me to sit tight at $500 for three months.

Well, from the beginning of my credit journey in August, I think I've done ok. I got my three cards, building a relationship with Navy Federal, no wasted HPs.

I guess I'm done for awhile.

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Congrats on your approval! My cash rewards was approved for $1K now it's at $44K. It will definitely grow with time. I do believe having a credit card will help with the auto loan. 

[OmarGB9]

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@SecondToLastDraftDodger wrote:

I went ahead and applied and they approved me, but only for $500.

I did recon, but they sent a message a few days later telling me to sit tight at $500 for three months.

Well, from the beginning of my credit journey in August, I think I've done ok. I got my three cards, building a relationship with Navy Federal, no wasted HPs.

I guess I'm done for awhile.

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Congrats on the approval! And as mentioned above, it'll grow over time.

[DONZI]

Based on much of the read I've done on NFCU, time is a big thing with Navy.

My own experience is pretty much right along with what I'd read.

Mid June '21 - Membership + deposit accts + ~$70k into flagship checking.

Mid July '21 - Applied/approved for MR Amex card

..day later called to see about a CLI to help with a trip soon, denied.

Late Dec '21 - CLI request online for ~125% increase

The MR is a great card, I'd say enjoy and manage it well along with your other cards.

That's what a young credit profile needs most, indications of well managed credit use over a period of time.

That in turn will instill confidence at the F.I. that they made a worthwhile choice by offering the CC approval.

Not really any way to accelerate that part predictably without something remarkable.

[SouthJamaica]

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@SecondToLastDraftDodger wrote:

Thank y'all for the replies.

What I've read gave me the impression that Navy Federal was a 'relationship bank', and they wanted to see product use and some history before they gave out large loan limits.

So, the idea was a credit card now would help give a year's worth of history, relationship, and product use before I applied for the loan. 

Have I misunderstood?

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Auto loans are easy to get. Every credit union I know is dying to write them.