Navy Federal Thread for CLI and Additional Cards

[designated_knitter]

Congratulations on your graduation!

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@southernblueeyes wrote:

My nRewards graduated Friday just a few days after my 6th statement. I was denied an unsecured card prior to graduation. Did ask for a CLI hoping for a double dip. No news yet. So I'm sure its no go for now. BK7 discharged in March so I probably need to hit the garden for now.  

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[newmomnewme]

17 days....but whose counting? 

[Anonymous]

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@newmomnewme wrote:

17 days....but whose counting? 

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I've got 3 days until 91/4, so it's not just you!

[Aim_High]

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@designated_knitter wrote:

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@Aim_High wrote:

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Wow, that's rough @designated_knitter.  Sorry of your denial...

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UPDATE!  I just got a message that I was approved for the secured card!  I'll be getting my card later this week!  I'm so relieved and excited!

------------------------- whining below ---------------------- ....

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That's awesome!    

Congrats on your Navy credit approval, @designated_knitter! 

Navy will be good to you and help you in your rebuild. 

Treat them well and your limits and cards will grow nicely!

[newmomnewme]

@Anonymous  I am so jealous! I look forward to your post in the approval thread!

[M_Smart007]

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@newmomnewme wrote:

17 days....but whose counting? 

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I am

[credit8502020]

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@Aim_High wrote:

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@credit8502020 wrote:

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@M_Smart007 wrote:

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@newmomnewme, IF? .. you decide to go for a second card, apply for that first, then the CLI for best results.

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@M_Smart007 Hi! Can you tell me the reasoning behind why someone may get better results by applying a card first and then asking for a CLI. My thought was that a higher CLI may assist in your getting a higher SL on the new card. However, I'm definitely one for best practices. I may have read it the logic behind why we should do it the way you described, but I don't recall. Thank you in advance for providing more details.

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I'm not @M_Smart007 but I think I can answer that, @credit8502020.   Navy has an internal scoring system that they use (separate from FICO scores) and they have internal lending limits based on your relationship with them.  They love relationship, so the longer and more active of a member you are with them, the more they will loosen up the purse strings.  That lending limit is relative to profile, but it's also completely separate.  In other words, high FICOs and income on a new membership that more easily impress other lenders mean less to Navy.  

So as they are loosening up the purse strings, if you ask for the CLI first, there may be nothing left on the table for them to give you on a second card, depending on how long you've been a member and your internal score.   There is a limited amount of funds they will give any profile at a point in time, regardless of FICO or even internal score. 

In my case, I was a brand new member but with high FICO and income.  I was also very actively-seeking other credit.  At the end of a very active year, they approved me for a Platinum card at a SL higher than many get on card one ($10K) but much less than I got on similar new cards.  After getting an $8K CLI followed by a small 'covid' $500 CLI, they denied me for card number two and refused to recon it.  (The small $500 covid CLI was a stupid mistake on my part.  I saw the CLI request button was still visible and clicked on it out of curiosity.)   So at the time, the $18.5K was my maximum lending limit, especially in the context of my newer Navy FCU relationship and my other recent applications. 

The only time you get to see your Navy internal score is when they decline you for a CLI or a new card.  Ironically, my Navy internal score was extremely high when they turned me down for card two so with Navy it's not all about that internal score.  The denial was more due to lending limits and other new accounts. 

*In the denial letter, Navy reported my internal score at 427 on a scale of 100 to 450.

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@Aim_High Thank you! I'm interested in hearing your opinion. My Mother joined NFCU in August and applied for the NFCU Cash Rewards Card the same month & only rec'd a $3k SL. I figured it was because she recently joined. This month she will be at 91/3 and I was thinking about suggesting she ask for a CLI because she doesn't have need for a new credit card right now especially & because she appd for another card that was approved in September. 

I know you mentioned asking for the CLI after a new card, but if you don't need a new credit card, how long after asking for a CLI would you suggest is a good time to app for a new credit card? She doesn't have to do the CLI, but I didn't want to miss the opportunity to get an increase. By the way, she only has 2 Inquiries (1 TU, 1 EQ). Thanks! 

[recoveringfrombk7]

I find myself in an interesting situation and I'm wondering if anyone else has some data points to share.

I have been with Navy for nearly a year (January is my anniversary).  They get most of my DD (a small amount diverts to a savings account elsewhere).  I have a CR with 9900 (originally 3900).  I have More Rewards 13,000 (originally 12,500*).

My credit history is in my signature, but briefly my BK is now 2 years old.  No new lates/issues.  Personal income gross is ~92k (DH and I rarely use joint income for personal cards, just how we do things).

*I was really surprised at my 91/3 with the AMEX that I only got $500.  I suspect that my DTI is getting worked over by student loans being paused.  I think it changes how my payments are calculated.  I'm on income-drive repayment.  So when I do have to pay, my payment is $550.  I am not responsible for our housing payment.  I suppose it is possible that my Nordic Track 0% financing is causing a problem, it reflects as a credit card, but it is high in usage.  My payment on it is 114/month, so it's going down slowly (currently 78%).  I have a balance of 2.5k on a 14.5k Discover at 0% financing that expires in 2/2021.  In terms of my overall debt. I do let balances report, but everything gets PIF.  I can easily go to AZEO if there would be benefit to doing so.  I've just been more relaxed lately because there hasn't been anything I've needed to apply for.

I really do think it's the student loans.  I owe an obscene amount (~180k) and I think with things being frozen they calculate my payment as 1% of the balance, which would be a payment of 1800 vs the 550 I'd actually be paying if it weren't paused - so that would really be a huge hit to my DTI.  I've heard with other lenders that if you provide proof of what your payment actually is they will reconsider.  Has anyone done this with Navy?  

I am hoping to apply for a Flagship when the SUB resurfaces.  I am also planning to finance a car around Memorial Day.  Just trying to get my ducks in a row.  The balance on the Discover will be gone by then.  The Nordic Track would be to around 69% by March for the card, and to 61% for the car in May.  I could put more money to it too if people think that's the big issue, but I am really thinking it's the student loans.  It looks likely that they will be extending the break and I plan to continue to take advantage of it.  I qualify for PSLF so these 0 payments are counting towards my forgiveness.  So, there is no way I will waive my right to pause because that's $550 I keep every month that I never have to give them.

Thanks everyone!

[M_Smart007]

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@credit8502020 wrote:

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@Aim_High Thank you! I'm interested in hearing your opinion. My Mother joined NFCU in August and applied for the NFCU Cash Rewards Card the same month & only rec'd a $3k SL. I figured it was because she recently joined. This month she will be at 91/3 and I was thinking about suggesting she ask for a CLI because she doesn't have need for a new credit card right now especially & because she appd for another card that was approved in September. 

I know you mentioned asking for the CLI after a new card, but if you don't need a new credit card, how long after asking for a CLI would you suggest is a good time to app for a new credit card? She doesn't have to do the CLI, but I didn't want to miss the opportunity to get an increase. By the way, she only has 2 Inquiries (1 TU, 1 EQ). Thanks! 

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@credit8502020, Sorry I did not get to your first question,

looks like @ Aim_High gave you a lot of good info

On the above part ^^^^^^^^

A second card would likely yield a higher SL than a CLI on the 1st card.

However starting out at $3K (Your Mother)  would likely get a $4K CLI  >>> That is kinda the Covid cap right now.

So IMHO, If you do not want to apply for a 2nd card, ask for a CLI on the 1st card.

If you go that route, then it would probably be best to wait 6 months to apply for a second card.

and you can again ask @ 6 months on the 1st card. (wait to ask for a CLI .. if after applying for another card for best results)

Also to note;  If the APR is higher than the advertised lowest APR for the 1st card?,

you can also request a APR reduction on the one year anniversary of any card.

Just my $0.02's worth.

[M_Smart007]

@recoveringfrombk7, I think you are doing all the right things.

I do not see a problem with applying for The Flagship when the SUB returns.

Navy obviously looks at your internal score as well as DTI .. and probably a few other things.

The one thing I might suggest, is to get that one high utilization (78%) down to under 48.9%,

28.9% would even be better, if possible.

And AZEO is always a huge plus

These are just my thoughts.