Navy Frustrations - Not sure what to do

[Jannelo]

"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?"

Your fourth statement hasn't even cut yet.  When you applied for a second credit card with NFCU, you only had three months of positive payment history with them.  In the grand scheme of things,  it being your only credit card, that's not much for them to go by, especially if they only approved you for a secured card to begin with.  And you have a new car loan.  I take it you just recently paid off your charge-off, because your FICO scores jumped within the last month.   That's great. 

After six months of having positive payment history with the NF CC, it will probably be a different story.   You will also now have quite a few months of positive payment history on your car loan.    Your recently paid charge-off has now stopped updating, so time helps that also.  I should know.  Mine was paid last year, which definitely helps that it showed "paid," but it's still on my record as a charge-off with lates.  Only time helps that.

Maybe you are expecting too much too soon from Navy Federal.  I only received a $500 SL with them.   I don't believe I'm one of those that will be able to apply for a second card in 90 plus days and get some great SL.   I can't compare myself to others.  I'm realistic.  That second card is a ways down the road for me.

GL

[Anonymous]

People see the huge approvals that NFCU can give out and think they can do the same. More often than not, NFCU wants some time to get to know you. If you start with a secured card, you can expect the relationship to grow slower. It is best to wait at least 6 months when starting off with NFCU and their secured card. 

As mentioned, your DTI looks quite high to them too. Even though your loan is in deferment, they have to calculate like if it was not. That generally means your payment is estimated at 1% per month. Add in the auto loan and it is easy to see why they would be nervous. NFCU is very likely seeing an increasing number of delinquencies right now so I expect them to be more cautious with their lending for awhile. 

[CreditInspired]

---

@Anonymous wrote:

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!

---

^^^ this times 10.

Also OP, you say your balance is $0 on your one and only CC. This is a problem. It appears to other CCCs like you have no CCs at all. Let the card report a balance, even if it's just $10-20. 

[sbabs1997]

---

@Jannelo wrote:

"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?"

Your fourth statement hasn't even cut yet.  When you applied for a second credit card with NFCU, you only had three months of positive payment history with them.  In the grand scheme of things,  it being your only credit card, that's not much for them to go by, especially if they only approved you for a secured card to begin with.  And you have a new car loan.  I take it you just recently paid off your charge-off, because your FICO scores jumped within the last month.   That's great. 

After six months of having positive payment history with the NF CC, it will probably be a different story.   You will also now have quite a few months of positive payment history on your car loan.    Your recently paid charge-off has now stopped updating, so time helps that also.  I should know.  Mine was paid last year, which definitely helps that it showed "paid," but it's still on my record as a charge-off with lates.  Only time helps that.

Maybe you are expecting too much too soon from Navy Federal.  I only received a $500 SL with them.   I don't believe I'm one of those that will be able to apply for a second card in 90 plus days and get some great SL.   I can't compare myself to others.  I'm realistic.  That second card is a ways down the road for me.

GL

---

Paid it off probably a year ago now. My scores went up because of a settled collection.

[sbabs1997]

---

@Anonymous wrote:

People see the huge approvals that NFCU can give out and think they can do the same. More often than not, NFCU wants some time to get to know you. If you start with a secured card, you can expect the relationship to grow slower. It is best to wait at least 6 months when starting off with NFCU and their secured card. 

As mentioned, your DTI looks quite high to them too. Even though your loan is in deferment, they have to calculate like if it was not. That generally means your payment is estimated at 1% per month. Add in the auto loan and it is easy to see why they would be nervous. NFCU is very likely seeing an increasing number of delinquencies right now so I expect them to be more cautious with their lending for awhile. 

---

Even if you would count my student loans and car payments my DTI is under 10%

[Anonymous]

---

@sbabs1997 wrote:

---

@Anonymous wrote:

People see the huge approvals that NFCU can give out and think they can do the same. More often than not, NFCU wants some time to get to know you. If you start with a secured card, you can expect the relationship to grow slower. It is best to wait at least 6 months when starting off with NFCU and their secured card. 

As mentioned, your DTI looks quite high to them too. Even though your loan is in deferment, they have to calculate like if it was not. That generally means your payment is estimated at 1% per month. Add in the auto loan and it is easy to see why they would be nervous. NFCU is very likely seeing an increasing number of delinquencies right now so I expect them to be more cautious with their lending for awhile. 

---

Even if you would count my student loans and car payments my DTI is under 10%

---

You still have a lot of young debt. Give them time.