First NFCU Credit Card

[CR-NY12]

Hi everyone,

I'm new to the world of credit at 20 years old, and I'm considering getting my second credit card. I recently became a member of Navy Federal as of 9/15/23, and over the last month and a half, I've taken several steps to build a positive history with them.

Since joining, I've been receiving regular direct deposits, although I recently quit my job, so these won't continue. I also transferred my savings from Chase and made my Navy Federal checking account my primary debit card. On 9/30, I opened a pledge loan for $1,001 with an 18-month term, and later that week, I paid it down to $88. As of 11/02, this payment has been reflected on my Experian report.

On Navy Federal's preapproval site, I can see all the options to apply for their credit cards. My main question is, do you think it's the right time to apply for a Navy Federal credit card and, if so, what are the chances of getting a substantial credit limit? Navy Federal is known for offering high credit limits. Alternatively, should I wait and continue building my relationship with them? Since I quit my job, I've been working on starting my own business using my existing credit line, and I believe having a new card would be beneficial in the near future. I take my credit card responsibilities seriously, never missing payments, and maintaining a low utilization rate, typically around 5% on the statement date.

Lastly, I'm torn between two Navy Federal credit card options: the GO Rewards and Cash Rewards cards. I already have the Discover card for cash back with 5% rotating categories and 1% on everything else. The GO Rewards card offers points for Gas and Restaurants, while the Cash Rewards card has an appealing intro bonus of $500, and the GO Rewards card has a low intro APR and a $100 bonus. I'd appreciate your insights on which one would be a better fit for me.

Thank you all for your advice and support. I'm looking forward to eventually reaching that 800 club with your help.

Credit Cards:

Discover IT Student (3,800 CL) - 2/2023
Capital One Quicksilver for Good Credit - (Authorized User 4,800 CL) 02/2002

Credit Scores:

EQ (10/16/23) - 788
EX (11/02/23) - 769 (-4 due to pledge loan)
TU (09/05/23) - 788

[JoeRockhead]

They're both decent cards. Unless you're opposed to an Amex backed card I'd consider the More Rewards first over the other two. 3x on restaurants and food delivery, 3x on Supermarkets, 3x on gas, 1x on everything else.

My second choice would be the Go Rewards Visa and lastly the Cash Rewards Visa. Keep in mind that unless they've changed their rewards structure on the Cash Rewards, you only get the elevated rewards if you maintain direct deposit, otherwise you're only getting 1.5x

Pay no attention to their pre-approvals as they're notoriously unreliable. As far as the chances of you getting a substantial SL is anyone's guess. But, with very little usage and on time payments they can be very generous with CLIs (max $8k per request).

Best of luck!

[FireMedic1]

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@CR-NY12 wrote:

Hi everyone,

I'm new to the world of credit at 20 years old, and I'm considering getting my second credit card. I recently became a member of Navy Federal as of 9/15/23, and over the last month and a half, I've taken several steps to build a positive history with them.

Since joining, I've been receiving regular direct deposits, although I recently quit my job, so these won't continue. I also transferred my savings from Chase and made my Navy Federal checking account my primary debit card. On 9/30, I opened a pledge loan for $1,001 with an 18-month term, and later that week, I paid it down to $88. As of 11/02, this payment has been reflected on my Experian report.

On Navy Federal's preapproval site, I can see all the options to apply for their credit cards. My main question is, do you think it's the right time to apply for a Navy Federal credit card and, if so, what are the chances of getting a substantial credit limit? Navy Federal is known for offering high credit limits. Alternatively, should I wait and continue building my relationship with them? Since I quit my job, I've been working on starting my own business using my existing credit line, and I believe having a new card would be beneficial in the near future. I take my credit card responsibilities seriously, never missing payments, and maintaining a low utilization rate, typically around 5% on the statement date.

Lastly, I'm torn between two Navy Federal credit card options: the GO Rewards and Cash Rewards cards. I already have the Discover card for cash back with 5% rotating categories and 1% on everything else. The GO Rewards card offers points for Gas and Restaurants, while the Cash Rewards card has an appealing intro bonus of $500, and the GO Rewards card has a low intro APR and a $100 bonus. I'd appreciate your insights on which one would be a better fit for me.

Thank you all for your advice and support. I'm looking forward to eventually reaching that 800 club with your help.

Credit Cards:

Discover IT Student (3,800 CL) - 2/2023
Capital One Quicksilver for Good Credit - (Authorized User 4,800 CL) 02/2002

Credit Scores:

EQ (10/16/23) - 788
EX (11/02/23) - 769 (-4 due to pledge loan)
TU (09/05/23) - 788

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Welcome @CR-NY12 

All creditors will want to see an employer so they know they can be paid. Yes you have $ in the bank. That may not fly. You have great expectations and doing it right. Once you land a job. Then go for it. Im posting this because you didnt mention a newer job.

[coldfusion]

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@FireMedic1 wrote:

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Welcome @CR-NY12 

All creditors will want to see an employer so they know they can be paid. Yes you have $ in the bank. That may not fly. You have great expectations and doing it right. Once you land a job. Then go for it. Im posting this because you didnt mention a newer job.

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Exactly my 1st thought when I read OP's post.   Do not apply until after you have actually started your new job (having offer in hand with start date doesn't count).

2 other comments - first of all, the NFCU online preapproval tool has earned the reputation of being pretty unreliable so don't consider it a Source of Truth regarding your odds of approval.   The other, since you asked about possible starting limit, is that they do tend to be conservative with your first cards starting limit and if you've established a positive track record much more generous with your 2nd card.

Agree with you that at least for now your Discover card is fine as your daily driver but also agree with the above suggestion that you target the More Rewards card as it has a broader range of category spend  than the GO Rewards card.

Isn't the current SUB for the Cash Rewards $250/$2500 spend?  $500 SUB is more typical of an enhanced promotional offer for the Flagship (which given your thin/short credit history is probably best avoided for now)

[spiritcraft1]

Suggestion if a new job is not in the plans and you intend to earn from your new company.

Get an EIN for your new company, eventually a LLC

Start paying yourself...

[CR-NY12]

Hey everyone,

Exciting update—I decided to pull the trigger and applied for the Navy Federal More Rewards American Express on December 26th, despite initial reservations shared by some in the thread. Although there was unanimous advice against it due to my recent change in employment status, I chose to trust my relationship with Navy Federal and my credit score.

I'm thrilled to report that I was approved for the More Rewards American Express with an impressive starting limit of $16,200. A huge shoutout to those who suggested the More Rewards card over my initial choices—I truly appreciate your insights and guidance.

Now, shifting gears a bit, I have a question unrelated to my recent approval. My mother has been holding an ordinary CashRewards card with a limit of around $22,000 for several years. I'm thinking of suggesting she consider a product change to the Flagship, as I believe it might better suit her needs. Does anyone know if she might receive a credit limit increase along with that product change?

On a related note, I've come across a few data points mentioning that credit limit increases beyond $25,000 might result in a hard inquiry, even through the mobile app. Can anyone confirm or deny this? I'd love to hear your thoughts and experiences.

Thanks again for all the help.

[JoeRockhead]

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@CR-NY12 wrote:

Hey everyone,

Exciting update—I decided to pull the trigger and applied for the Navy Federal More Rewards American Express on December 26th, despite initial reservations shared by some in the thread. Although there was unanimous advice against it due to my recent change in employment status, I chose to trust my relationship with Navy Federal and my credit score.

I'm thrilled to report that I was approved for the More Rewards American Express with an impressive starting limit of $16,200. A huge shoutout to those who suggested the More Rewards card over my initial choices—I truly appreciate your insights and guidance.

Now, shifting gears a bit, I have a question unrelated to my recent approval. My mother has been holding an ordinary CashRewards card with a limit of around $22,000 for several years. I'm thinking of suggesting she consider a product change to the Flagship, as I believe it might better suit her needs. Does anyone know if she might receive a credit limit increase along with that product change?

On a related note, I've come across a few data points mentioning that credit limit increases beyond $25,000 might result in a hard inquiry, even through the mobile app. Can anyone confirm or deny this? I'd love to hear your thoughts and experiences.

Thanks again for all the help.

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Congratulations on your More Rewards approval! Yes they will do a PC for your mom to the Flagship. If she hasn't requested a CLI in the past 180 days I'd suggest she does a CLI request separately online or through their app so it will be a SP. Requesting one by phone through a CSR will likely result in a HP. As far as a HP for limits over $25k it's going to be a YEMV thing... some people have gotten well beyond that with a SP and some haven't.

You might also consider starting a new thread in the approvals section in regards to your approval. 

[kh_jenn]

Congrats on your approval! I'll close this thread to new replies now. As mentioned, please feel free to continue your discussion in the Approvals board.Thank you!