cancel
Showing results for 
Search instead for 
Did you mean: 

Navy Federal Cash Rewards -- CLI

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Visitor

Navy Federal Cash Rewards -- CLI

I got a Navy Federal Cash Rewards card with limit of $1,000 back in November. My balance is currently $628 (recent purchases while my debit card was being replaced). My scores are mid 600s (640-680) and I make just shy of $60k a year. I would like to apply for a CLI but wasnt sure if they automatically do a CLI at some point or do I need to request one? I can wait till my next paycheck where I will be paying some of these balances down. I just don't want to apply and get denied. In the process of rebuilding my credit after Bankruptcy (almost two years ago).

 

Current cards

Discover Secured: Bal 30, Limit 200

CreditOne: Bal 347, Limit 750

Kohls: Bal 64, Limit 300

Navy Federal Cash Rewards: Bal 628, Limit 1000

Message 1 of 16
15 REPLIES 15
Community Leader
Valued Contributor

Re: Navy Federal Cash Rewards -- CLI

I would probably pay down the card a little and THEN ask for one. Navy is generous, but your card is currently sitting at around 63% utilization. I would pay it down as much as possible before asking. 

Discover It: 19.7k
Amex BCE: 18k
Citi DC: 5.7k
~~~~~~~~~~~~~~~~~~
Once you go Berner, you never go back.
Message 2 of 16
Frequent Contributor

Re: Navy Federal Cash Rewards -- CLI

If I were you I would consider paying the CashRewards down to to $75 and then applying for a second Navy card. Once approved for a second Navy card I’d pay off CreditOne card then cancel it. There’s no way to know if/when Navy will give you an auto credit limit increase (CLI). Asking for a CLI will cost you a hard inquiry on Equifax. Applying for a new card will cost you a hard inquiry on Transunion. If you are going to get an inquiry either way it might as well be for a new card (or at least that’s how I look at it). Navy often gives a higher limit for your second card.
Current Cards (in order they were approved with current limits):
Cap1 QS (plat.) $2750
Kohls $3K
Cap1 Savor $15K
PenFed Power Cash Rewards $2K
NFCU CashRewards $2K
Disco It #1 $5.3K
NFCU MoreRewards $4.5K
Cap1 Venture $30K
PenFed Gold $2K
Ollo Rewards $3.2K
Sync Amazon $10K
NASA FCU Platinum Cash Rewards $2K
Disco It #2 $7.5K
DCU Visa $10K
NFCU Flagship Rewards $15K
Sync Care Credit $15K
PenFed Power Cash Rewards #2 $39K
WF Propel $4K
Comenity AKC $10.5K
Apple (GS) $6.5K
BK 7 discharged July 2016


Message 3 of 16
Frequent Contributor

Re: Navy Federal Cash Rewards -- CLI


@coco427 wrote:

I got a Navy Federal Cash Rewards card with limit of $1,000 back in November. My balance is currently $628 (recent purchases while my debit card was being replaced). My scores are mid 600s (640-680) and I make just shy of $60k a year. I would like to apply for a CLI but wasnt sure if they automatically do a CLI at some point or do I need to request one? I can wait till my next paycheck where I will be paying some of these balances down. I just don't want to apply and get denied. In the process of rebuilding my credit after Bankruptcy (almost two years ago).

 

Current cards

Discover Secured: Bal 30, Limit 200

CreditOne: Bal 347, Limit 750

Kohls: Bal 64, Limit 300

Navy Federal Cash Rewards: Bal 628, Limit 1000


Just to echo previous posts, I would pay that balance down first. Not sure how often NFCU does automatic CLI's.....my experience was that I had to ask for mine, which resulted in a hard pull inquiry. The inquiry doesn't matter to me....but the increase from 11k to 29k was pretty awesome!

Starting Score:Low 500s in 2013
Current Score 9-20-2019: TU: 806 EX: 799 EQ: 780
Goal Score: 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Gold - AmEx Platinum - DISCO - NFCU Cash Rewards - AmEx Simply Cash Business - Chase Sapphire Preferred

Message 4 of 16
Frequent Contributor

Re: Navy Federal Cash Rewards -- CLI

I would just like to add that (from what have have been reading) if you request a CLI Navy will probably give you 3X your current limit which would be $3000. I think you would probably get more than that with a new card. No way to know for sure.
Current Cards (in order they were approved with current limits):
Cap1 QS (plat.) $2750
Kohls $3K
Cap1 Savor $15K
PenFed Power Cash Rewards $2K
NFCU CashRewards $2K
Disco It #1 $5.3K
NFCU MoreRewards $4.5K
Cap1 Venture $30K
PenFed Gold $2K
Ollo Rewards $3.2K
Sync Amazon $10K
NASA FCU Platinum Cash Rewards $2K
Disco It #2 $7.5K
DCU Visa $10K
NFCU Flagship Rewards $15K
Sync Care Credit $15K
PenFed Power Cash Rewards #2 $39K
WF Propel $4K
Comenity AKC $10.5K
Apple (GS) $6.5K
BK 7 discharged July 2016


Message 5 of 16
New Visitor

Re: Navy Federal Cash Rewards -- CLI

Thanks! May I ask why you would cancel the credit one? Does that go against credit cancelling a card?
Message 6 of 16
Frequent Contributor

Re: Navy Federal Cash Rewards -- CLI

OP -I think closing your Credit One Card would be a good idea because it probably has high fees. You should be able to optimize your FICO scores with 3 cards. If it’s not costing you money to keep open then you might not want to close it. I do worry that if you apply for credit and they do a manual review of your report a Credit One Card might not look that great. However for credit scoring purpose and automatically generated (computer generated) credit decisions the Credit One Card is just like any other card and it won’t hurt you at all.

I would not close your Credit One card until you get it down to a zero balance and if you do close it I would make sure to keep checking to see if they add any trailing interest or fees after it is closed and make I’d make sure to pay those off as well. I wouldn’t close it with a balance because that would cause your utilization to go up because once closed it will have an available credit limit of zero and any balance would cause it to be maxed it out.

If you have the time to spend and you want to maximize your credit score for building purposes (to get a house or car [or just for a challenge Smiley Happy]) I would recommend the following:

For the best score you should have all of your cards report a zero balance and let one card report a balance of less than 7.99% (up to 30% is really fine unless you’re super OCD like me) of THAT CARD’S total available credit limit. You can still use the other cards just make sure to pay them to zero before their statements are generated (cut).
The one card that you let report a balance can then be paid down to zero as soon as it’s statement cuts with the balance. If you do this you will never have to pay interest on any of your cards.

If you carry a balance and pay interest on your cards then any rewards you earn are more than cancelled out by the interest you pay and you lose money. I make it my personal policy to never charge anything on a credit card that I don’t have enough money in the bank to pay off immediately. I use my cards with the mindset that I am making debit card purchases. I just funnel the money through my credit cards to earn rewards and bonuses and to show credit card use so I can build my credit. I realize that not everyone can afford to do this. But you should know that you don’t need to revolve balances and pay interest to get the best FICO scores and the banks can still make money from you anyway. The banks get swipe fees (a percentage of the purchase amount) each time you use one of their cards. This is how the bank pays you cash-back and points- they share part this swipe fee with you.

If you have a need to carry a balance for some reason you should get a card with the lowest interest rate possible and let that card be the one that you let report a balance.
For Navy that would be the Platinum rewards card. They actually currently have an offer where you could transfer all of your other credit card balances to a new Navy Platinum Card and get 0% financing for 12 months with no balance transfer fee.

If you did this you would have a year to pay off all of your current credit card debt with no interest. I’m guessing that Credit One is charging you pretty high interest. If you do decide to do this just keep in mind that you can’t use the new card for making any new purchases until you have paid the balance down to zero or Navy will start charging you interest on the day you make any new purchases.

Here is my advice:
If I had enough cash to do it I would pay everything down to zero except I would leave a $75 balance on the Navy card and then I would then wait until all the payments were reported to the credit bureaus. I would then apply for a new Navy rewards card. I think if you did this you would maximum your new starting credit limit with Navy and you would have a nice new rewards card to use and profit from.

If I couldn’t afford to pay off my entire existing balances (with the exception of the one card I want to report a small balance on) I would pay off as much of my other existing balances as I could, and wait for it to report to the bureaus and then apply for a Navy Platinum Card to use for balance transfers to pay off the rest my existing balances.

If you are impatient (like me) or if you don’t think you can make much of a dent in your current balances you could also just apply for the Navy Platinum Card now and see what limit you get. You may or may not get a smaller credit limit than you would have if you had waited for your credit reports to update.

As far as the effect of closing the Credit One Card:
It will not effect your FICO score until it falls off your report. Closed cards usually report for ten or so years after they are closed. Once they are no longer on your credit report they are no longer calculated into your average age of accounts and if it was your oldest card then your second oldest card would replace it as your oldest card in your FICO score calculation (which could cause a small point loss). But even if it is your oldest account when it falls off in about ten years it will probably have zero impact on your FICO scores (provided that it’s not MUCH older than your second oldest card).

I should mention that closing your Credit One card will effect your Vantage scores for the near term. (Vantage scores are the free scores available on sites such as Credit Karma, Credit Sesame etc...).
These scores don’t really matter because most lenders do not use them but I mention it so you won’t get worried if you notice this.

If you decide to pay only a portion of your current balances before you apply to Navy let us know how much money you plan to use to make the payments and we can help you figure the best way to use the money to get the biggest score bump prior to your new app. You get points from paying cards down under certain utilization thresholds and you will also get points for having most of your cards report a zero balance.

Hopefully you’re not sorry you asked now. Good luck!
Current Cards (in order they were approved with current limits):
Cap1 QS (plat.) $2750
Kohls $3K
Cap1 Savor $15K
PenFed Power Cash Rewards $2K
NFCU CashRewards $2K
Disco It #1 $5.3K
NFCU MoreRewards $4.5K
Cap1 Venture $30K
PenFed Gold $2K
Ollo Rewards $3.2K
Sync Amazon $10K
NASA FCU Platinum Cash Rewards $2K
Disco It #2 $7.5K
DCU Visa $10K
NFCU Flagship Rewards $15K
Sync Care Credit $15K
PenFed Power Cash Rewards #2 $39K
WF Propel $4K
Comenity AKC $10.5K
Apple (GS) $6.5K
BK 7 discharged July 2016


Message 7 of 16
Frequent Contributor

Re: Navy Federal Cash Rewards -- CLI

By the way OP I have a chapter 7 bankruptcy that was discharged in July of 2016 and I have managed to get a lot of great cards. I have $160K in revolving credit limits. I have 15 bank cards and 3 store cards including:
Penfed PowerCash Rewards $39K
Venture $30K
Savor $15K
Navy Flagship $15K
DCU $10K
Navy Amex $4.5K
Wells Fargo Propel ( my newest card) $4K
Plus some smaller limit cards that I haven’t wanted to use hard pulls to get the limits up on.
I also got a Cap1 car loan at 3.18% interest in January of 2017 and I got a PenFed car loan at 1.99% interest last June.
To be fair my income is $160 K but your income isn’t bad either. I tell you this so you can see what’s possible if you don’t spend more money than you have and if you spend time reading this forum. Good luck!!!!
Current Cards (in order they were approved with current limits):
Cap1 QS (plat.) $2750
Kohls $3K
Cap1 Savor $15K
PenFed Power Cash Rewards $2K
NFCU CashRewards $2K
Disco It #1 $5.3K
NFCU MoreRewards $4.5K
Cap1 Venture $30K
PenFed Gold $2K
Ollo Rewards $3.2K
Sync Amazon $10K
NASA FCU Platinum Cash Rewards $2K
Disco It #2 $7.5K
DCU Visa $10K
NFCU Flagship Rewards $15K
Sync Care Credit $15K
PenFed Power Cash Rewards #2 $39K
WF Propel $4K
Comenity AKC $10.5K
Apple (GS) $6.5K
BK 7 discharged July 2016


Message 8 of 16
Senior Contributor

Re: Navy Federal Cash Rewards -- CLI


@coco427

 


Welcome to myFICO Forums!

Message 9 of 16
Regular Contributor

Re: Navy Federal Cash Rewards -- CLI


@Hex wrote:

If you have the time to spend and you want to maximize your credit score for building purposes (to get a house or car [or just for a challenge Smiley Happy]) I would recommend the following:

For the best score you should have all of your cards report a zero balance and let one card report a balance of less than 7.99% (up to 30% is really fine unless you’re super OCD like me) of THAT CARD’S total available credit limit. You can still use the other cards just make sure to pay them to zero before their statements are generated (cut).
The one card that you let report a balance can then be paid down to zero as soon as it’s statement cuts with the balance. If you do this you will never have to pay interest on any of your cards.

I actually don't think this is the best way to "build" a credit score. AZEO is good for right before you are applying for something. It should be used for a specific situation. It is NOT the best thing to do long term, because the FICO algorithm will ding your score if you're not showing managed and responsible use of multiple cards. You get a score bump for showing "recent use of credit cards." If you're consistently let all of the same cards report with a zero balance, and only using one card, I believe you lose out on that score bump. Additionally, as others have pointed out, lenders like to see people using multiple cards. If your suggestion was for him to do AZEO for a specific application, then I agree. If it was to ALWAYS employ this strategy to "build" his credit score over time, then I disagree.

Message 10 of 16
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.