Navy Frustrations - Not sure what to do

[sbabs1997]

Hello all,

I've been watching these forums for some time now and I've gotten great advice and tips through it. I've been able to raise my credit and make some great decisions by way of these forums so thank you. I am however a bit frustrated and would maybe like some insight into why I was denied recon even up to the Executive level at Navy. 

I have had a secured card for going on my 4th statement next week. I have been able to raise my TU FICO 8 which navy pulls from to a 685. I recently got an auto loan for 22k through Cap1 and have a student loan which is currently in forbearance at $33k. I have no baddies except a Discover charge off from 2016 which has since been paid off and no other late payments. My utilization on my secured card is at 0% (the only card I have) and the limit on that is $1700. 

I have never had a late payment on this Navy Card and yet I was denied for both the More and Cash Rewards cards and don't even get prequal offers on the website. I am just curious as to why? The only ding may be my inquiries, many of which came from Carmax mass financing a year ago which I am trying to get taken off, another from the Auto Dealership which I told him not to do and he still did which I am trying to get taken off, and a few card applications (the two newest from Navy rejections). Other than these, what about my profile completely blacklists me from receiving a new card? It's just exceptionally frustrating seeing folks who have been treated generously by Navy and not being able to be in that same boat. 

I have 4 new CC accounts in the past 24 months (three of which are closed). Would any Chase card be worth a try even though no prequals come up for that either? Just not sure what to do right now as I really want a gardening card that I can grow for the next 2 years but nobody seems to be giving me a chance. Just super frustrating especially when I KNOW I would be on time for every single payment. 

Income is $75k/yr

[Jannelo]

You've only had the secured card for four months.  Give it time.  You're not blacklisted.  Maybe it was the recent opening of several cards, even though you closed most.  

You can check BB&T's prequals and see what offers you have.  If you accept a card and apply, you will only get a SP on Equifax, no HP.  At least, that's what happened to me and the majority of others who have posted on here.

https://www.bbt.com/offers/checkOffers

[Anonymous]

There are a lot of posts on here about banks tightening their belts.  I have no experience with NFCU, but I suggest just waiting out this financial crisis and revisit later in the year.  

I know it is frustrating but realize that the bar has gone up in many areas and the few DPs that people share on  here generally dont tell the entire story.  

[Anonymous]

@sbabs1997  first of all congrats on your NRewrds card. It truly is your foot in the door. It sounds like so far you have had three statements cut and you are doing all the right things and your scores are improving every month. I'm sure the heavy-hitters will weigh in but I will share my situation and thoughts. I am coming up on the 1st anniversary of my new build. The most important thing I have learned is that besides paying on time and watching my utilization, giving my new profile time to grow is mega important. 

We can't really compare our situations to others since all profiles are a bit different. Because you are doing all the right things, your access to higher limits and additional CL's will grow. The reality is that you may have to just keep doing what you are doing for several more months and show Navy that you know how to manage your current card. It seems like most secured cards graduate after 7-8 months. You have only had your secured card for a 3-4 months, just give it time. 

Personally, I would not apply for anything right now. Use the heck out of that existing card and PIF every month. Wait until it graduates and then apply for a second card. You didn't mention what your DTI is currently but keep that in check and you will be fine. Congrats on all the steps you have taken and I know you will have massive success in the future. I am looking forward to celebrating your journey!  

[Anonymous]

OP, it sounds like you've only been a member of NFCU for a short time, and an overall thin credit file. Perhaps take yourself out of your shoes and into the shoes of an underwriter.

--New $22K Auto Loan (no pmt history)

--$33K in Student Loans (w/no pmt history)

--2016 Charge-Off (poor pmt history)

--3 credit cards opened & closed within 24 months 

--1 active 4 month old secured revolving account

Being purely objective, if you didn't know that applicant, and you were responsible for vouching for their reliability and trustworthiness in financial matters, would you approve the request? 

We all feel we should get what we want. We believe we're qualified and ready. But credit is not an entitlement, it's a business. 

Let your secured card mature and graduate. Show 12 months of solid use and responsibility, and take care of the other financial obligations you've got, and I'd be willing to bet you'll be approved for that card you want from NFCU!

Best of luck!

[Anonymous]

^^^ exactly. Navy is known to historically be big on DTI, and that probably goes even more so now. You didn't mention your income, but they see the factors that @Anonymous laid out and combine that with your short history with them, and they simply aren't ready yet to extend more credit. I echo the above - head down, maintain good habits, and tend to your accounts, and in time the doors will open.

[Anonymous]

I'd also add, though unsure about Navy's policy on churners if any, that you closed 3 out of 4 new accounts in the past 24 months. 

Whether they see it as churning or not, I don't think it looks good.

[sbabs1997]

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@Anonymous wrote:

^^^ exactly. Navy is known to historically be big on DTI, and that probably goes even more so now. You didn't mention your income, but they see the factors that @Anonymous laid out and combine that with your short history with them, and they simply aren't ready yet to extend more credit. I echo the above - head down, maintain good habits, and tend to your accounts, and in time the doors will open.

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@ other replies as well my income is in the last paragraph of my original post - $75k/yr.

[sbabs1997]

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@Anonymous wrote:

I'd also add, though unsure about Navy's policy on churners if any, that you closed 3 out of 4 new accounts in the past 24 months. 

Whether they see it as churning or not, I don't think it looks good.

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Not sure what churning is exactly however, I truly didn't feel like having all of those cards was helping me in any way ($200 secured Citi, $400 unsecured Cap1, $300 secured Credit One) so I paid them off and closed those accts, hoping to be able to soon garden.

[Anonymous]

I completely missed the income statement. Ok so compare $75k income to $55k in loans, plus revolving credit. For a CU known to be big on DTI, that may be too high for them to go further until they learn your habits.

Churning is when people open cards for the signup bonuses, run a bunch of fabricated spend through the card to get the free money, then close the card and move on. Understandably, that is frowned upon. Your three cards closed in the last 24 months may appear to be churning, is what the posted above was saying.