Penfed Gold Denial

[Anonymous]

Recently opened a savings with penfed (hardpull) then decided to apply for the gold card which was also another wasted hard pull.

Denied

Score 784

• Lack of recent installment loan information

• Length of time accounts have been established

Oldest account is 2 yrs, 3 mos

AAOA: 1 YR 3 MOS

I have 14 cards, I carry no balance on any of them.

It seems like the few times I've had a denial (lack of recent installment loan information is ALWAYS listed)... Any ideas to overcome this?

[blindambition]

Sorry about the denial!! You can try to recon with survey they send. Otherwise, give it some time and address reason codes. Good luck!

[chiefone4u]

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@Anonymous wrote:

Recently opened a savings with penfed (hardpull) then decided to apply for the gold card which was also another wasted hard pull.

Denied

Score 784

• Lack of recent installment loan information

• Length of time accounts have been established

Oldest account is 2 yrs, 3 mos

AAOA: 1 YR 3 MOS

I have 14 cards, I carry no balance on any of them.

It seems like the few times I've had a denial (lack of recent installment loan information is ALWAYS listed)... Any ideas to overcome this?

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Get a loan... auto loan, mortgage, student loan are all installment loans.

There is a company Self Lender that basically a portion of your monthly payments goes into a savings account. 

Personally, if you're interested in a PenFed credit card get a small Personal loan from them; pay a large portion of it off right away (to minimize interest) but I'd make sure you stretched payments at least 90 day's. 

It is quite possible PenFed would approve the card after the loan funds and before it actually reports to CRA's... though a new HP is extremely likely for the loan and to re-apply for credit card. 

[cashorcharge]

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@Anonymous wrote:

Recently opened a savings with penfed (hardpull) then decided to apply for the gold card which was also another wasted hard pull.

Denied

Score 784

• Lack of recent installment loan information

• Length of time accounts have been established

Oldest account is 2 yrs, 3 mos

AAOA: 1 YR 3 MOS

I have 14 cards, I carry no balance on any of them.

It seems like the few times I've had a denial (lack of recent installment loan information is ALWAYS listed)... Any ideas to overcome this?

---

There is a product called an SSL and I think it stands for Secured Savings Loan.  I know a lot of people have written about it extensively with NFCU so I would think PenFed may have that option.  Put some money in savings, they established a line of credit based on the amount and then you can pull from the line, keeping the savings as collarteral and pay it down either monthly or by a huge chunk to free up your cash and leave a small balance...this way it reports current with payments made and satisfies this type of account requirement.  I have never done it but a lot of people have great success doing so.

Check out this thread on all the details

https://ficoforums.myfico.com/t5/Personal-Finance/Approved-NFCU-SSL-with-detailed-steps-May-2020/m-p/6012898#M186963

[rostrow416]

The installment loan reason is only included because there are few things they can knock you for with a good score.

However, 14 cards in 2 years might give them a bit of a pause as well.  Give it 6 months and let a small balance report monthly on 1 card.  Then apply again.

[Conceptual23]

Brutal.  Sorry to hear about the denial, perhaps you could try a Pledge loan (if you're a Navy Fed member) or other secured loan.  Maybe re-app a few months later. 

[Loquat]

@Anonymous Welcome to the Forum!   As others have mentioned below, there are SSL that you can apply for but if I'm to be honest, there's nothing PenFed offers that's worth opening an SSL for.  With your credit score already being as high as it is, anything they have to offer you can get elsewhere without jumping through hoops.  

I have accounts with PenFed and I do think they are a really good institution but I certainly don't think that they're working going extra steps for when you already have a pretty high score.  

Just my opinion.  But again, welcome to the forum and stick around these here parts...lots to learn from a bunch of folks willing to help you through just about any scenario you can throw at them. 

[LawStudentCivilis]

I can't remember where I saw the data point, but I have seen a few people mention PenFed likes to see AAoA of at least 3 years I believe.  So I wonder if it is combination of installment loan and younger account history.

[chiefone4u]

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@LawStudentCivilis wrote:

I can't remember where I saw the data point, but I have seen a few people mention PenFed likes to see AAoA of at least 3 years I believe.  So I wonder if it is combination of installment loan and younger account history.

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I might be the odd man out, but my PCR was approved with mid 600 scores and AAoA at 2 years 1 month.

I had been denied the same card 3 month's earlier with virtually the same stats. Applied and approved for personal loan, had to provide POI. 20 days later I applied for PCR again, this time with instant approval $15k limit.

[Remedios]

"No installment loan" is the reason code why your score isn't higher, but not a "true" reason for denial.

As mentioned above, you're at 14 cards with a very short credit history.

That would give most lenders a pause, especially now.

If you were to get a loan that you don't need, you'd lose that reason code, but you'd be adding yet another account while lowering already fragile AAoA.

Best thing you can do is stay app free for a while.