Should I apply for Navy Federal CC?

[MrsF]

Hi all!

I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months.  Here are some stats:

Indigo card $300 CL (about a year old)

Capital One card $300 CL (1 month old)

Credit One card $400 CL (1 month old)

United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)

I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:

1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).

1 paid charge off scheduled to fall of later this year

4 medical collections (trying to get PFD)

1 collection that I'm disputing (process started)

1 credit card collection (trying to get PFD)

120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

[Anonymous]

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@MrsF wrote:

Hi all!

I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months.  Here are some stats:

Indigo card $300 CL (about a year old)

Capital One card $300 CL (1 month old)

Credit One card $400 CL (1 month old)

United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)

I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:

1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).

1 paid charge off scheduled to fall of later this year

4 medical collections (trying to get PFD)

1 collection that I'm disputing (process started)

1 credit card collection (trying to get PFD)

120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

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I'm sorry you got thr Credit one card. Those guys are bottom feeding fee seekers. Watch them like HAWKS. 

Your scores are certainly in the realm of approval for NFCU. I'd say go for it - then when you get it, DROP the credit one card like a hot potato. 

Once you get the card, maybe consider a share secured loan with NFCU, and then garden for a while. 

[M_Smart007]

I say gopher it

Your highest score is TU .. that is what they will pull for a new card.

Good Luck

[MrsF]

Thanks for the feedback. How does the share secured loan work, take out a loan based on the amount in my savings account?

[MrsF]

Oh I forgot to ask: are they pulling FICO 8 scores or the "credit card" scores that are stated on MyFICO?

[gingerflower]

@MrsF  I'd say go for it and if approved get rid of the credit one! Fingers crossed for you Goodluck 😇

[SouthJamaica]

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@MrsF wrote:

Hi all!

I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months.  Here are some stats:

Indigo card $300 CL (about a year old)

Capital One card $300 CL (1 month old)

Credit One card $400 CL (1 month old)

United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)

I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:

1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).

1 paid charge off scheduled to fall of later this year

4 medical collections (trying to get PFD)

1 collection that I'm disputing (process started)

1 credit card collection (trying to get PFD)

120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

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I think it would be preferable to wait, but I think you have a chance.

[Anonymous]

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@MrsF wrote:

Oh I forgot to ask: are they pulling FICO 8 scores or the "credit card" scores that are stated on MyFICO?

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NFCU uses FICO 9. In MF, that's under "other scores"

read the first two posts here regarding the share secured loan:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

[recoveringfrombk7]

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@Anonymous wrote:

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@MrsF wrote:

Hi all!

I'm currently in the middle of a credit rebuild. I have three starter/low bucket credit cards, and I would like to apply for a Navy Federal credit card, since they seem to be a little easier to get than some of the other big bank cards. I'd like opinions on whether to go ahead and apply now or wait a couple months.  Here are some stats:

Indigo card $300 CL (about a year old)

Capital One card $300 CL (1 month old)

Credit One card $400 CL (1 month old)

United Bank Visa secured card $1000 CL (3 years old - joint ownership with spouse)

I am also an authorized user on my spouse's credit cards - including a Navy Federal credit card with a $4200 CL

Highest utilization on any one card is 8% (some are lower)

Scores Equifax (637), TransUnion (670), Experian (655) - I've gained 100+ points on each over the past year due to my rebuild efforts :-)

Baddies:

1 30-day late for One United Bank yearly 3 years ago (sent first round of goodwill letters to see if they will remove it).

1 paid charge off scheduled to fall of later this year

4 medical collections (trying to get PFD)

1 collection that I'm disputing (process started)

1 credit card collection (trying to get PFD)

120-day lates on student loans (brought current; lates are a year ago)

Employed as an RN; salary $69K

Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

---

I'm sorry you got thr Credit one card. Those guys are bottom feeding fee seekers. Watch them like HAWKS. 

Your scores are certainly in the realm of approval for NFCU. I'd say go for it - then when you get it, DROP the credit one card like a hot potato. 

Once you get the card, maybe consider a share secured loan with NFCU, and then garden for a while. 

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There are worse than Credit One.

@MrsF 

OP once you get 3 no AF cards make sure you cancel any cards that have AF/additional fees of any sort.  I kept my Credit One for around 10 months and canceled it before paying an AF.  Make sure when you do cancel these cards you request proof by mail and then also login to check your balance for 90 days after canceling to ensure there is no trailing interest/the online portal reflects the account closure.  

Navy has been great to me post BK.  They care mostly about DTI.  Best of luck!

[Anonymous]

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@SouthJamaica wrote:

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@MrsF wrote:

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Should I go ahead a try for Navy Federal? I realize the starter credit cards aren't going to increase that much as far as credit limits, so I want to graduate to something that will give me higher credit limits. Is it too soon since obtaining the Credit One and Capital One cards?

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I think it would be preferable to wait, but I think you have a chance.

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The biggest reason I suggested she go ahead was to go ahead and "Start the clock" on aging the accounts.  There is some evidence that for at least the first 12 months, you get hit with the "new accounts" penalty on FICO8 and maybe other score models. Doesn't matter whether it is five or one... obviously your AAoA will get hit worse with more accounts, but the Age of Youngest Account doesn't really care how many. new accounts you have.  If she starts the clock now with a secured card and an SSL would let her get over that "new account" flag on her credit in about a year, presuming she starts gardening for a year once these are approved.  If she waits, she resets that clock in a few months.  It isn't a perfect argument.  Definitely a judgement call.  

I made a mistake last year and went for five or six in a short period, where I probably should have stopped once I had four good ones.  For me, the correct advice was to quit while I was ahead.  For someone in MrsF's position, perhaps ONE more and a good secured installment loan would be a good fit, then she can AGE those for a year, and be in a pretty darned good credit position a year from now.