Navy Federal Thread for CLI and Additional Cards

[Anonymous]

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@Anonymous wrote:

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Using 98% of your credit limit means that you're in a maxed out condition which is defined as over 88.9% of your credit limit.  If I were in your place, I would pay the balance down to about 80% utilization before the statement cuts, then pay off the balance entirely after statement cut if you can afford to do so.

Here's why.  If you always pay off the balance before statement cut only Navy will know your activity on the account.  However, if you allow a large balance (below 88.9% of limit) to report to the credit bureaus, your other creditors can see the "highest balance" established on your account and see that you've also paid off that balance; thus demonstrating to them that you can manage your credit.

Personally, I allowed a brand new Navy account that I opened in January 2019 to report with 81 percent utilization in the first month although I could have easily paid it down before the statement cut.  But to me it was more important to establish a solid "Highest Balance" for the account on my credit report, so that any other creditor reviewing my reports would see that I can handle high limits responsibly.  I temporarily lost about some FICO points for crossing 3 individual utilization thresholds but I regained those points when I paid the balance down and the account was updated with the credit bureaus.  Navy never freaked out when that balance reported; in fact I could have gotten either a CLI or another card after 91/3 but I declined because I'm currently gardening and I have larger plans in the next few months.

To me the insistence on paying in full before statement cut and AZEO are the two most wrongheaded bits of advice dispensed in these forums.  I practice neither and if you look at my scores and available credit lines I don't think I'm doing badly.

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Thank you for this gem re: letting a high balance report then PIF. That makes total sense to me. I had been inadvertently doing that from time to time, but now I see that there is a purpose behind it. That being said, what's your issue with AZEO? Seems to me like it is a useful strategy to employ just before making an app for a car loan or a mortgage (which is precisely my plan in the next month). I don't see any utility in ALWAYS employing AZEO, and I don't plan on doing that, but if doing it in the immediate month prior to applying for an 80K car loan will help my score a bit, I don't see why it would be bad advice to follow.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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Using 98% of your credit limit means that you're in a maxed out condition which is defined as over 88.9% of your credit limit.  If I were in your place, I would pay the balance down to about 80% utilization before the statement cuts, then pay off the balance entirely after statement cut if you can afford to do so.

Here's why.  If you always pay off the balance before statement cut only Navy will know your activity on the account.  However, if you allow a large balance (below 88.9% of limit) to report to the credit bureaus, your other creditors can see the "highest balance" established on your account and see that you've also paid off that balance; thus demonstrating to them that you can manage your credit.

Personally, I allowed a brand new Navy account that I opened in January 2019 to report with 81 percent utilization in the first month although I could have easily paid it down before the statement cut.  But to me it was more important to establish a solid "Highest Balance" for the account on my credit report, so that any other creditor reviewing my reports would see that I can handle high limits responsibly.  I temporarily lost about some FICO points for crossing 3 individual utilization thresholds but I regained those points when I paid the balance down and the account was updated with the credit bureaus.  Navy never freaked out when that balance reported; in fact I could have gotten either a CLI or another card after 91/3 but I declined because I'm currently gardening and I have larger plans in the next few months.

To me the insistence on paying in full before statement cut and AZEO are the two most wrongheaded bits of advice dispensed in these forums.  I practice neither and if you look at my scores and available credit lines I don't think I'm doing badly.

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Thank you for this gem re: letting a high balance report then PIF. That makes total sense to me. I had been inadvertently doing that from time to time, but now I see that there is a purpose behind it. That being said, what's your issue with AZEO? Seems to me like it is a useful strategy to employ just before making an app for a car loan or a mortgage (which is precisely my plan in the next month). I don't see any utility in ALWAYS employing AZEO, and I don't plan on doing that, but if doing it in the immediate month prior to applying for an 80K car loan will help my score a bit, I don't see why it would be bad advice to follow.

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I have nothing against AZEO when practiced in the 30-60 days leading up to an important credit event.  Any other time to me is impractical; I just use my cards, let them report, then pay (usually PIF).  I don't worry about minor fluctuations in my credit score although I can understand being concerned about scores if they are only marginally categorized as Good.

[Anonymous]

Gotcha. Then I’m on the same page as you. Thanks again for the help in this thread and the CSP SUB thread I started. Really appreciate it. By the way, I’m a Stanford grad... I still have fond memories of our Harbaugh days (but am still happy with the program as it stands now).

[Anonymous]

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@Anonymous wrote:

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To me the insistence on paying in full before statement cut and AZEO are the two most wrongheaded bits of advice dispensed in these forums.  I practice neither and if you look at my scores and available credit lines I don't think I'm doing badly.

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@Anonymous  From your scores, You have done an incredible job and i'm sure no one would agrue that and most of us would love to have them   Please be mindful of the fact that what works for you, may not work for someone else as every profile is different.  Someone without a clean profile or other issues *could* end up having AA happen by letting an 81% util balance report.  That is why you see YMMV A LOT 

That being said, AZEO is incredibly useful if you are going after a card/loan product to get the best rates/terms possible. Other than that, i can see letting some balances report so that you are showing you can use it maybe let it report and pay it off WITHOUT going into debt to do so. 

[FicoGuy2019]

Thanks.  I definitely do see the value in letting it cut vs paying ahead of time as I normally do. I am not planning on any major purchases so I could indeed do that.  I guess I just have to "mentally" prepare to see my score drop from utilization...lol.  Thanks for all of your opinions!

[Anonymous]

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@Anonymous wrote:
Gotcha. Then I’m on the same page as you. Thanks again for the help in this thread and the CSP SUB thread I started. Really appreciate it. By the way, I’m a Stanford grad... I still have fond memories of our Harbaugh days (but am still happy with the program as it stands now).

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You're welcome.  Hopefully we will eventually get the same success as Harbaugh did at Stanford.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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To me the insistence on paying in full before statement cut and AZEO are the two most wrongheaded bits of advice dispensed in these forums.  I practice neither and if you look at my scores and available credit lines I don't think I'm doing badly.

---

@Anonymous  From your scores, You have done an incredible job and i'm sure no one would agrue that and most of us would love to have them   Please be mindful of the fact that what works for you, may not work for someone else as every profile is different.  Someone without a clean profile or other issues *could* end up having AA happen by letting an 81% util balance report.  That is why you see YMMV A LOT 

That being said, AZEO is incredibly useful if you are going after a card/loan product to get the best rates/terms possible. Other than that, i can see letting some balances report so that you are showing you can use it maybe let it report and pay it off WITHOUT going into debt to do so. 

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I appreciate the caution.  Of course they are always caveats but someone with a reasonably solid profile should be able to allow a card to report naturally without spooking a lender.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

---

To me the insistence on paying in full before statement cut and AZEO are the two most wrongheaded bits of advice dispensed in these forums.  I practice neither and if you look at my scores and available credit lines I don't think I'm doing badly.

---

@Anonymous  From your scores, You have done an incredible job and i'm sure no one would agrue that and most of us would love to have them   Please be mindful of the fact that what works for you, may not work for someone else as every profile is different.  Someone without a clean profile or other issues *could* end up having AA happen by letting an 81% util balance report.  That is why you see YMMV A LOT 

That being said, AZEO is incredibly useful if you are going after a card/loan product to get the best rates/terms possible. Other than that, i can see letting some balances report so that you are showing you can use it maybe let it report and pay it off WITHOUT going into debt to do so. 

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I appreciate the caution.  Of course they are always caveats but someone with a reasonably solid profile should be able to allow a card to report naturally without spooking a lender.

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I 100% agree you should be able too.  How that works out in reality can be somewhat different sometimes.  Luckily NFCU is not one that spooks very easily which is why they have a good chunk of my business. 

[yoshi-ten1]

Hello Credit Experts,

Im ready to apply for an auto loan with NF, and could use you guys help before I complete the app.

Does the $25K limit also apply for auto loans as the cutoff before they ask for POI?

I also want to apply for a second cc, CLI on my Cash Rewards, or a line of credit. Is there any order in which I should submit the apps? If I go for a second card, is there one you all would recommend over the other? My FICO 8's range between 620-680. Transunion being the highest and Equifax being the lowest, which I know is the one they pull for auto loans, but I can't wait any longer to get a newer vehicle, so I'm just going try my luck. Any input from the experts is greatly appreciated!

[yoshi-ten1]

Hey guys, I'm reposting, just incase you all didn't see my earlier post. Im still trying to figure this thing out.

Im ready to apply for an auto loan with NF, and could use you guys help before I complete the app.

Does the $25K limit also apply for auto loans as the cutoff before they ask for POI?

I also want to apply for a second cc, CLI on my Cash Rewards, or a line of credit. Is there any order in which I should submit the apps? If I go for a second card, is there one you all would recommend over the other?
My FICO 8's range between 620-680. Transunion being the highest and Equifax being the lowest, which I know is the one they pull for auto loans, but I can't wait any longer to get a newer vehicle, so I'm just going try my luck. Any input from the experts is greatly appreciated!