NFCU Denial 3rd Attempt for 2nd CC

[Anonymous]

Hello all,

I've opened a checking and savings account with NFCU 8 months ago. I also applied for a CLOC-Approved for 1500 and a CC-approved for 500. 4 months later I applied for a cli on my cc and was denied. I also applied for a second cc and was denied due to max exposure. 

Fast forward a few weeks ago I applied for a CLI on my cc and received a 500.00 increase. Today I applied for a second cc and was denied. My Navy credit score is 652. I have zero collections. All of my credit cards are below 30 percent uti. I currently have a 5,000.00 loan with another bank i am currently paying on. My income is 65k. I have 75K in students loans that are deferred. Is this whats stopping them for giving me a second cc? I am not sure whats going on. I am open to any advise you may have. My denial is reached max exposure. My credit limits are low with them. PLEASE HELP

[M_Smart007]

---

@Anonymous wrote:

Hello all,

I've opened a checking and savings account with NFCU 8 months ago. I also applied for a CLOC-Approved for 1500 and a CC-approved for 500. 4 months later I applied for a cli on my cc and was denied. I also applied for a second cc and was denied due to max exposure. 

Fast forward a few weeks ago I applied for a CLI on my cc and received a 500.00 increase. Today I applied for a second cc and was denied. My Navy credit score is 652. I have zero collections. All of my credit cards are below 30 percent uti. I currently have a 5,000.00 loan with another bank i am currently paying on. My income is 65k. I have 75K in students loans that are deferred. Is this whats stopping them for giving me a second cc? I am not sure whats going on. I am open to any advise you may have. My denial is reached max exposure. My credit limits are low with them. PLEASE HELP

---

@Anonymous  .. Sorry for your 2nd card denial.

"My income is 65k. I have 75K in students loans that are deferred. Is this whats stopping them for giving me a second cc?" YES!

NFCU focuses heavy on DTI (Debt to Income)

Next time apply for your 2nd card before you ask for a CLI on your 1st card.

I would wait 1 year before applying again, or you may get the same results.

Also you can read and ask questions here;

https://ficoforums.myfico.com/t5/Credit-Card-Applications/Navy-Federal-Thread-for-CLI-and-Additional-Cards/td-p/3419729

[Anonymous]

Thank you for your response. Is there a forum I can learn about DTI? 

[Anonymous]

Those student loans are hurting you a lot in the DTI department. Most creditors use a formula of 1% of the deferred balance being the payment for the loans. In your case that's $750. 

To get your DTI, take your minimum payments on cards with a balance, add them to housing (rent/mortgage) payment amounts, and then add the installment payments (including the 1% of your student loan balance). Take that number and divide by gross monthly income to get the DTI percentage.

If it's under 20%, you're in the ideal range with NFCU and it's something else. If it's under 30%, there are likely some other factors that they don't like. Over 30% and it's likely going to keep you from getting much additional credit until they warm up to you. 

[Anonymous]

I agree w/ Saeren, it is definitely the student loans. Deferred pmts are calculated at 1%. That is jacking up your DTI.

[Anonymous]

Wow some good info here! 

@Anonymous  @Anonymous   Do you know if the 1% is also what's used for Student Loans that are in Default?

[Anonymous]

1% is only used for deferral. Default loans would be actual payment amounts that are used.

[Anonymous]

I have had no payments for the last 7-8 years, I am 3 months into rehabilitation, paying $5 monthly, but those payments don't report to any of the bureaus. I just checked the closed accounts, and I see that each of the 8 loans has a monthly payment of $5 listed, is that what they use? I have never noticed that monthly payment before!

sorry to hijack the thread :/

[Anonymous]

Well this thread has certainly been enlightening!

I have a similar profile to OP, with similar results. So if it's DTI they're looking at...my vehicle is on my personal credit, but it is paid for by work/not part of my salary. Should I boost my salary by the cost of the car payments that are pulling my DTI down?

[Anonymous]

You also say that all your credit cards are under 30% util, but don't say how much debt that is. It may also be holding you back.

I'm guessing that when student loans are in repayment, they go by actual payment amount? I only make about 45k but have 80k in student loans (40k in federal with income based repayment and 40k in private). I got the $20k 2nd card, but I also applied 1 year after my 1st card 🤷🏽