Penfed Denial / Approval

[Tapdnsr25]

This afternoon I became a member of Penfed by creating a savings account. Putting $5 into the savings account was all that was required. I did not have to make a donation or anything like that, as I'd thought I was going to have to do.

I turned around and immediately applied for the Platinum Rewards card, and though it seemed as if it was approved at first...it was not. They countered with an offer for the Power Cash Rewards card...with a $2500 SL. I can't do much with this card, but I didn't want to waste a HP and was wanting to start a relationship with them, so I accepted. 

I did not get any inquiry notifications from MyFICO, Credit Karma, Credit Wise, or Wallet Hub...so I am not sure if they did a HP or just a SP. When I got the letter explaining the decision, it cited high bankcard utilization. My overall UTI is at less than 10%...now...though that was not the case a month ago. So I'm wondering if they used a SP with outdated information. My EQ FICO9 is 775 (FICO8 is 732). I should have 2 other inquiries on EQ in the past 12 months--one from a CapitalOne application Sunday night, and another from a personal loan back in April.

If they SP'd Experian, however, the scores are lower (759 for FICO9 and 721 for FICO8), and if they pulled outdated data, from whatever bureau, the scores would be significantly lower.

*As I wrote this post, I got an email from them prompting me to log into my account message center, where they'd posted a letter detailing their reasons for their decision. It said my EQ FICO9 was 771 (apparently I'd lost 4pts for the inquiry from CapitalOne and MF hasn't reflected that yet). So now I'm a little shocked and put down. The point I was driving at here was to ask if I should call for recon, but knowing they had the correct information and still made that decision leaves me quite deflated. I would have liked to begun a REAL relationship with them, but with a $2500 CL...I can't really do much with that, especially since the rewards for this card are less than stellar as well.

Is there any likely chance of success with recon? Income is $80k...I have one 30 day late from July 2017 (thanks to Wells Fargo's faulty software)...I have an auto loan for $27k, a loan on an RV for $34k (my fiance pays it and we co-signed on it, but it's primarily in my name for some reason), and 2 small personal loans that have been paid off early, but which haven't been reported as paid yet. I was approved for the Amazon Prime Rewards Signature Visa card Sunday night with a $9k SL, and a Savor One with a $5k SL on Monday. I'm off to the garden for a while now, but would love to get this $2500 SL brought up first.

Any insight or thoughts are welcome. 

[FinStar]

Highly unlikely, but you're welcome to try.

A variety of reported DPs have indicated that if an alternative product is offered, then one can accept or decline it, but there will not be a reconsideration of the SL. In a variety of cases, they have been known to SP EX in addition to usual HP on EQ. Only way to know for sure is to obtain your actual reports to view any SP activity. So, it's your call if you wish to pursue it.

[Tapdnsr25]

I forgot to mention a few things.... 

I also have a new Ultamate Rewards Mastercard (for Ulta, through Comenity), with a $2k SL (acquired in November, and currently reporting $16, by accident).

My older accounts are Discover It (my daily driver reporting about $1450 on it out of $17,200 CL, acquired in October 2018), a Kohl's store card (reporting $0 out of $1,500 CL, acquired in spring of probably 2017, I think), and a CreditOne card [my 1st real bankcard, acquired in the fall of 2017, reporting $9 (also an accident) out of a measly $700 CL]. 

My accounts are all fairly new, unfortunately. I didn't have anything in my name during my previous, decade-long marriage, so everything in my file is from 2014 and on. Also unfortunate--from a credit file standpoint anyway--is that our home is paid for yet is not reflected on even my fiancé's file because his wealthy father bought it for us. He owns it outright, but I feel like when I put down $0 (or sometimes $1) for housing, I look like I'm lying. This Penfed "denial" also referenced a lack of a mortgage.

[FinStar]

Given the information you shared above, it sounds like you already have some decent cards under your belt, despite some new ones you've recently acquired. But, I wouldn't let the reason of not having a mortgage on your reports as a negative thing. It's simply a reason, not the reason why PenFed didn't approve the card you had originally applied for. 

You mentioned the Credit One account reporting a $9 balance. I'm assuming that's the monthly fee?  You also mentioned further upthread that you were recently approved for the Amazon Visa card and Savor One with very decent limits, so is there a point of still having the Credit One account?

[Tapdnsr25]

You are correct, it was the fee, which reported before it even showed up (or the same day, before I realized it hit). It's not applied monthly and appears to be random, so I never know when it's going to be applied to the account, so I have to check the account fairly often, just to make sure that fee is paid and isn't reported. I'd love to get rid of this card, but since it's my oldest revolving account, I've kept it for the boost it gives my AAoA. I think the AF is $39, so I've figured it was worth it for a little while longer. Do you think it wouldn't really matter that much, though? 

[FinStar]

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@Tapdnsr25 wrote:

You are correct, it was the fee, which reported before it even showed up (or the same day, before I realized it hit). It's not applied monthly and appears to be random, so I never know when it's going to be applied to the account, so I have to check the account fairly often, just to make sure that fee is paid and isn't reported. I'd love to get rid of this card, but since it's my oldest revolving account, I've kept it for the boost it gives my AAoA. I think the AF is $39, so I've figured it was worth it for a little while longer. Do you think it wouldn't really matter that much, though? 

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You can still continue to get the boost of your AAoA even if you closed the Credit One account. Since the limit is $700, it's really negligible [utilization-wise]. Besides, you'll have the Amazon Visa and Savor One report in about a month which will give your overall utilization a boost. Scores may dip a little since these are newly introduced accounts, but they will recover with time.

Closed accounts are still factored into the AAoA metrics and they continue to report for up to ~10 years after closure (give or take). So, in my opinion, save yourself the headache of having to monitor the account periodically, especially with the monthly charge -- let alone the $39 AF. Now, if the limit was considerably higher and there was no annual fee, sure -- keep it. Otherwise, it has served its purpose and your overall profile seems to indicate you've moved on from lenders like Credit One. If you close it, make sure to get confirmation in writing. Check periodically to ensure there is no other surprise $9 charges after the fact.

As far as PenFed goes, sleep on it. The cards can grow their limits (unlike Credit One) and they can open the doors for other products. Personally, I would take it, but this is ultimately your decision.

Also, your Ulta MC, you can request your first CLI (it's SP) after having the card for six months (online or via automated phone system). Savor One CLI requests are also SP (try after 6 months - online). Chase are HP, so unless you absolutely need one, leave that one for an automatic CLI in the future.

[Tapdnsr25]

Thank you!

I really feel like an idiot ATM because I knew that...or should have known it! LOL  I know that installment accounts keep reporting, so I'm not sure WHY I thought revolving accounts don't. Well, I guess I did know they keep *reporting* but for some reason I thought they stopped factoring into the AAoA. Good grief...SMH. How embarrassing. lol

Thank you, I WILL close it. 

[FinStar]

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@Tapdnsr25 wrote:

Thank you!

I really feel like an idiot ATM because I knew that...or should have known it! LOL  I know that installment accounts keep reporting, so I'm not sure WHY I thought revolving accounts don't. Well, I guess I did know they keep *reporting* but for some reason I thought they stopped factoring into the AAoA. Good grief...SMH. How embarrassing. lol

Thank you, I WILL close it. 

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Nah, don't be embarrassed or feel that way. This forum is a wealth of knowledge and we all learn something new. So, I'm glad you shared your experience and the additional information which gives us a better perspective on things.

[cashorcharge]

As an additional note for you @Tapdnsr25 , agreed with everything @FinStar stated...spot on!  

With PenFed, now that you're in...once you get these accounts going...keep an eye out for "offers" which will appear on the right side of the screen when logged in to your account.  They begin to "review" your account for potential offers after 6 months so with good usage and payment history on your card, you may see offers that will lead to CLI's or new offers of additional cards.  Lastly, you should know that any member initiated CLI's are EQ HP so if that's a concern, remember to not use that button on their website unless you're prepared for a HP.  Best of luck with you new PenFed accounts.

[Tapdnsr25]

Thanks! Those HP increases are one of the reasons the low SL is SO disappointing. It basically means I wasted my time (and a HP), because I won't be requesting CLI's at the expense of HP's, and I won't really use a card that will mess up my UTI due to the low limit, so putting enough spend through it to get automatic increases isn't likely. It might as well be a bucketed CapitalOne card. Really, really disappointed. I'll run SOME spend through it, like some bills, but it's probably never going to be a main card for me. I should have gone for the Sam's Club card for the 5% back on gas (one of the reasons I wanted the Penfed Platinum), but the Sam's membership is in my fiancé's name so I told him HE was going to get that card instead of me. #facepalm