NFCU/PENFED pre-qualification uses only your SCORE. THIS is why you might get denied

[visualfxpro]

So I'm not 100% on both of them doing this, but I'm pretty sure it was PenFED that told me this and maybe NFCU does the same. Rep told me, all they look at is your score. So if you have a good score, you will get pre-qualified, but that is worthless. You might have too thin of a file or charge offs and get denied because of that when they hard pull.

So it looks like all their pre-qualification does is tell you if your score is high enough and ignores everything else. Seems dishonest. The soft check alows them to see everything right? I don't see why they can't do an automated check of everything, then when you apply all they do is have a human do manual review and in most cases accept your application.

I also don't see why they can't just be honest about what they want. Don't even have to give all, just say what all things are guaranteed rejections; no active collections, no charge offs with 7 years...

Credit in America is such a game. SMH

[Reviewers]

That seems dumb that they only look at score instead of factoring in everything else in the pre-qualification. Just seems more work on there end instead of doing it all in the beginning.

And.... Tell me about it ;-) @visualfxpro 

[AverageJoesCredit]

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@visualfxpro wrote:

So I'm not 100% on both of them doing this, but I'm pretty sure it was PenFED that told me this and maybe NFCU does the same. Rep told me, all they look at is your score. So if you have a good score, you will get pre-qualified, but that is worthless. You might have too thin of a file or charge offs and get denied because of that when they hard pull.

So it looks like all their pre-qualification does is tell you if your score is high enough and ignores everything else. Seems dishonest. The soft check alows them to see everything right? I don't see why they can't do an automated check of everything, then when you apply all they do is have a human do manual review and in most cases accept your application.

I also don't see why they can't just be honest about what they want. Don't even have to give all, just say what all things are guaranteed rejections; no active collections, no charge offs with 7 years...

Credit in America is such a game. SMH

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One rep does not tell whole story. Taking advice from frontline csrs should be taken with grains of salt as many companies/ lenders the frontline  people are not up to date on rheir own companies policy. Also remember they are NOT Underwriters and usually have very little power with your account. 

[brk1971]

Just as your credit report is a snapshot of your credit on a specific date / time, so is loan approval criteria. 

Risk profiles for a portfolio (think all accounts in X category, or all accounts in the organization's register) shift frequently and these trickle into loan approval criteria. You - with exactly the same X and Y - may qualify one day and be declined the next because of how the risk of your transaction impacts the overall.

Essentially, you can't always assume approval for X loan based on Y score and Z income. How Y and Z for X today, this morning may have a much different impact on the whole as it does even later today or three months from now. It also may change later today when an account, a group of accounts, or an entire portfolio are impacted by actions completely unrelated to your transaction.

This is not largely different than the example of how home or auto insurance rates can skyrocket even when you haven't had any claims... Insurance companies maintain specific capitalization requirements, so claims paid to others (e.g. large tornado claims on the other side of the state) may have a dramatic impact on their capital level and cause a systemwide increase that you feel in your renewal.

The main point is that data driven decisions are not personal and they'll never say "x and y qualifies you for z" again, because that's not how the backend of the financial industry works -it's dynamic not static.

[coldfusion]

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@AverageJoesCredit wrote:

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advice from frontline csrs should be taken with grains of salt

[SUPERSQUID]

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@visualfxpro wrote:

So I'm not 100% on both of them doing this, but I'm pretty sure it was PenFED that told me this and maybe NFCU does the same. Rep told me, all they look at is your score. So if you have a good score, you will get pre-qualified, but that is worthless. You might have too thin of a file or charge offs and get denied because of that when they hard pull.

So it looks like all their pre-qualification does is tell you if your score is high enough and ignores everything else. Seems dishonest. The soft check alows them to see everything right? I don't see why they can't do an automated check of everything, then when you apply all they do is have a human do manual review and in most cases accept your application.

I also don't see why they can't just be honest about what they want. Don't even have to give all, just say what all things are guaranteed rejections; no active collections, no charge offs with 7 years...

Credit in America is such a game. SMH

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I dont know who you talked to at penfed but penfed has no prequalifier.

As far as NFCU goes, its widely known that their prequalifier is worthless and NFCU has an internal score they use that is a mystery. a few weeks ago mine was 297 out of 450 and i was approved for the cash rewards 3700 sl when the prequal page only offered the nrewards secured.

[Duriel]

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@SUPERSQUID wrote:

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@visualfxpro wrote:

So I'm not 100% on both of them doing this, but I'm pretty sure it was PenFED that told me this and maybe NFCU does the same. Rep told me, all they look at is your score. So if you have a good score, you will get pre-qualified, but that is worthless. You might have too thin of a file or charge offs and get denied because of that when they hard pull.

So it looks like all their pre-qualification does is tell you if your score is high enough and ignores everything else. Seems dishonest. The soft check alows them to see everything right? I don't see why they can't do an automated check of everything, then when you apply all they do is have a human do manual review and in most cases accept your application.

I also don't see why they can't just be honest about what they want. Don't even have to give all, just say what all things are guaranteed rejections; no active collections, no charge offs with 7 years...

Credit in America is such a game. SMH

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I dont know who you talked to at penfed but penfed has no prequalifier.

As far as NFCU goes, its widely known that their prequalifier is worthless and NFCU has an internal score they use that is a mystery. a few weeks ago mine was 297 out of 450 and i was approved for the cash rewards 3700 sl when the prequal page only offered the nrewards secured.

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They are a mysterious bunch. When I got approved for the flagship at 20k, I got a letter showing a similar internal score. 

[Anonymalous]

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@Duriel wrote:

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@SUPERSQUID wrote:

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NFCU has an internal score they use that is a mystery. a few weeks ago mine was 297 out of 450 and i was approved for the cash rewards 3700 sl when the prequal page only offered the nrewards secured.

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They are a mysterious bunch. When I got approved for the flagship at 20k, I got a letter showing a similar internal score. 

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SLs are probably more based on your income. Are your incomes some multiple of your SLs?