NASA FCU denial after preapproval

[quickstep_knoll]

Just thought I'd add a datapoint here—I checked NASA FCU's preapproval tool for their Classic Card, because their standard interest rates are extremely competitive for a credit card, and I thought it could be an easy financial product to have for short term spending access beyond emergency savings if absolutely needed. I was pre-approved for the lowest rate offered (9.9% transfers and 12.4% purchase) and a $20,000 credit limit.

However it ultimately was denied, and when I got the letter, my score was ~795, HP Experian, and of the many stated reasons, one stood out—basically it boiled down to "you haven't taken out a HELOC against your home"—how bizarre, and no thanks! I guess my "only" installment loans right now are a mortgage and a student loan.

(by the way, none of the labels apply to this post really)

So let's call this an app spree because this application was within a month or two of 4 approvals. Does that count?

I didn't bother with recon because I started reading about similar occurrences with their preapproval tool (not that trustworthy), and I also saw that there were seemingly random CLDs that seem to be reported as well.

[AndySoCal]

@quickstep_knoll  With HELOC loans there is a credit card that can be issued that is linked to the loan. I would call them and explain the error and see what happens

[tbgothard]

I used to be an underwriter for a credit union. It is possible to code an incorrect denial reason or possibly deny a good application if you thought the applicant was applying for the wrong product. Many CUs still use humans for a lot of applications.

When I first started, all my decisions went to the senior underwriter for final review. Then I "earned my wings" by having low error rates and was able to approve without secondary review up to my limits for each loan type. 

If they offer a HELOC with CC access (like Aven), then they may have thought you didn't have the prerequisite product for their HELOC CC. 

It may be worth it to call recon. Adverse action notices are just as important for transparency of denial and where the CR came from as it is for uncovering a mistake in the underwriting process. 

[quickstep_knoll]

Thanks all for the feedback; I wasn't applying for a HELOC based product, just the plain old Visa Classic. I'm scared of HELOCs to be honest, life comes at you fast. 

[AndySoCal]

@quickstep_knoll  Did call NASA FCU and ask them about the HELOC reason when you are applying hpjust a credit card specify which one?

[Pppoolboy]

You're not missing much. NASA is a horrible credit union.  I've heard bad stories and have personally had a bad experience with them wherein I became a member and opened checking and savings accounts.  These were funded and sat there for a few days.  Then they suddenly closed my accounts because of "suspicious activity" and it took weeks for them to send me a refund check for the funding amount.  No explanation, no help at all.  I would never recommend any banking products with them.