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Penfed security interest form 🤔

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Yasselife
Valued Contributor

Penfed security interest form 🤔

Can someone please explain what this is about?  I'm trying to apply for a card and don't remember seeing this on my previous application. Thanks

B98E3AD0-5AA8-4570-A52B-D59AF223537F.jpeg

 


Message 1 of 9
8 REPLIES 8
GZG
Senior Contributor

Re: Penfed security interest form 🤔


@Yasselife wrote:

Can someone please explain what this is about?  I'm trying to apply for a card and don't remember seeing this on my previous application. Thanks

B98E3AD0-5AA8-4570-A52B-D59AF223537F.jpeg

 


I would assume it means that they are authorized to take money from any PenFed bank accounts you have w/them to cover your PenFed CC debt in the event of default 

But I would wait for additional DPs

something like this: 

https://www.reddit.com/r/NavyFederal/comments/qnpncq/thank_you_navy_federal_for_taking_my_entire_lif... 

Starting FICO 8:
Current FICO 8:



4/6, 4/12, 8/24 new accounts
Message 2 of 9
Hex
Valued Contributor

Re: Penfed security interest form 🤔

I think cross collateralization is standard for all credit unions. If I'm wrong someone will correct me shortly I'm sure. 

Message 3 of 9
Yasselife
Valued Contributor

Re: Penfed security interest form 🤔

@GZG  This answers my question. Thank you!


Message 4 of 9
OmarGB9
Community Leader
Super Contributor

Re: Penfed security interest form 🤔


@Hex wrote:

I think cross collateralization is standard for all credit unions. If I'm wrong someone will correct me shortly I'm sure. 


Not just CUs. Regular big banks, too.


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 5 of 9
zerofire
Valued Contributor

Re: Penfed security interest form 🤔

No offence but which banks use a cross collateralise clause? I do not believe I have ever seen a bank try to use one. I have only seen it used by CU's as a defensive measure.

TU:816 12/19/24 Bank of America--EX: 809 01/03/25 Experian--EQ:836 01/06/25 myFICO--Gardening since N/A
Active:
Bank of America (Unlimited Cash Rewards WMC, Customized Cash Rewards WMC, Customized Cash Rewards VSC), Capital One Savor WEMC, Chase (Amazon Prime VSC, Freedom Flex WEMC [x2], Freedom Unlimited VC), Citi (Custom Cash WEMC, Dividend MC), Citizens GreenSense WMC, Curve WEMC(Suspended), Discover It DC, FNBO Ducks Unlimited VSC, GBank VSC, PenFed (Platinum Rewards VSC, Pathfinder Rewards VSC), Santander Ultimate Cash Back WMC, Synchrony PayPal Cashback WMC, UMB Simply Rewards VSC[Milford Federal], US Bank (Cash+ VSC [x2], Pick n Save/Metro Market WEMC, Shield VC)
Wishlist: AAA Daily Advantage, AOD Signature, Bellco Colorado Rewards, Nusenda Platinum Cash Rewards, PCMCU Platinum Rewards, Redstone FCU Signature
Message 6 of 9
OmarGB9
Community Leader
Super Contributor

Re: Penfed security interest form 🤔


@zerofire wrote:

No offence but which banks use a cross collateralise clause? I do not believe I have ever seen a bank try to use one. I have only seen it used by CU's as a defensive measure.


I was just going off some DPs in this thread, about BoA in particular. Granted, it's a decade old, so that may not be the case anymore.


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 7 of 9
GZG
Senior Contributor

Re: Penfed security interest form 🤔


@OmarGB9 wrote:

@zerofire wrote:

No offence but which banks use a cross collateralise clause? I do not believe I have ever seen a bank try to use one. I have only seen it used by CU's as a defensive measure.


I was just going off some DPs in this thread, about BoA in particular. Granted, it's a decade old, so that may not be the case anymore.


BoA didn't care for me.

I had more than enough to PiF my CO with them in their accounts and they just let it sit there.

Starting FICO 8:
Current FICO 8:



4/6, 4/12, 8/24 new accounts
Message 8 of 9
zerofire
Valued Contributor

Re: Penfed security interest form 🤔

Bank of America did those before there was tightening on how banks need to safeguard the deposit accounts. Today they leave the money in the deposit account and rack up interest. They no longer write those clauses in I belive.

TU:816 12/19/24 Bank of America--EX: 809 01/03/25 Experian--EQ:836 01/06/25 myFICO--Gardening since N/A
Active:
Bank of America (Unlimited Cash Rewards WMC, Customized Cash Rewards WMC, Customized Cash Rewards VSC), Capital One Savor WEMC, Chase (Amazon Prime VSC, Freedom Flex WEMC [x2], Freedom Unlimited VC), Citi (Custom Cash WEMC, Dividend MC), Citizens GreenSense WMC, Curve WEMC(Suspended), Discover It DC, FNBO Ducks Unlimited VSC, GBank VSC, PenFed (Platinum Rewards VSC, Pathfinder Rewards VSC), Santander Ultimate Cash Back WMC, Synchrony PayPal Cashback WMC, UMB Simply Rewards VSC[Milford Federal], US Bank (Cash+ VSC [x2], Pick n Save/Metro Market WEMC, Shield VC)
Wishlist: AAA Daily Advantage, AOD Signature, Bellco Colorado Rewards, Nusenda Platinum Cash Rewards, PCMCU Platinum Rewards, Redstone FCU Signature
Message 9 of 9
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