PenFed - Very Inconsistent with approvals

[ToofDoc]

Let me share my experiences. 

So in the last year on here, I've read a bunch of success PenFed credit card application posts/stories with people and their DPs with a recent (less than a year) bankruptcy DC (with or without prior banking relationships).  So being a person with recent bankruptcy trying to rebuild credit, I was excited to learn that hey there's a CU that is bankruptcy friendly! I mean people with less than a year bankruptcy dcs were getting approved with very generous $4000-6000 starting SL!?! I was like WOW!

My bk dc was on 10/30/2019, so my dc is over a year and almost 2 years out. I learned that PenFed pulls Equifax and my Equifax FICO 8 is over 700. So with those DPs, I figured that I should be OK and decided that I would like to establish a credit relationship with PenFed as part of my credit restoration journey. 

To further boost my chances to get a credit card with them, I even established a banking relationship with them first THEN I'll apply for their credit cards! Bullet proof, right?!  So in August 2021 (2 months ago), I opened not one, not two, but THREE accounts with them all on one day!!

Access America Checking - $500

Regular Share Savings - $5

Premium Online Savings - $150,000

A month would pass, in September 2021, I pulled the trigger and applied for their Power Cash Reward Visa credit card. DENIED! 😳 I was like **bleep**?! Got the denial letter and it said "recent bankruptcy, wait more time to reapply" 

I couldn't believe it! I have $150,505 in your bank!! I've read you've approved people $4000+ starting SL with less than a year bankruptcy DC and with lower credit scores!!!? Needless to say, I was deflated and irritated.

Another month goes by, on 10/8/2021, I decided to apply AGAIN for the same PCR credit card! 😆  This time, after two weeks, 9 phone calls, and 7 document uploads later, I got approved!  You ready for the "generous" starting credit line? They gave me **bleep**ING $1,500!!!! 🤣 ARE THEY SERIOUS!?! 

Oh well, something is better than nothing! 

Moral of the story, PenFed sucks! PenFed is very inconsistent with their approval. It's almost like it depends which UW you get with your app and if they're having a good day or not? Also, having a strong relationship does NOT help! If you're considering getting a credit card with them, no need to open an account first.

On a brighter note, my $150K is earning amazing dividends in their Premium Online Savings account just in two short months!

[mgood]

Sorry to hear about your frustrations with PenFed. I've been pretty lucky with them.

@ToofDoc wrote:
I learned that PenFed pulls Equifax and my Equifax FICO 8 is over 700.

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PenFed looks at Equifax FICO 9. Just FYI.

[Rebuild2019]

What a story. Happy you finally got approved.

[rostrow416]

It's always YMMV.  Congrats on finally getting approved though.

[WavysMommy]

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@ToofDoc wrote:

Let me share my experiences. 

So in the last year on here, I've read a bunch of success PenFed credit card application posts/stories with people and their DPs with a recent (less than a year) bankruptcy DC (with or without prior banking relationships).  So being a person with recent bankruptcy trying to rebuild credit, I was excited to learn that hey there's a CU that is bankruptcy friendly! I mean people with less than a year bankruptcy dcs were getting approved with very generous $4000-6000 starting SL!?! I was like WOW!

My bk dc was on 10/30/2019, so my dc is over a year and almost 2 years out. I learned that PenFed pulls Equifax and my Equifax FICO 8 is over 700. So with those DPs, I figured that I should be OK and decided that I would like to establish a credit relationship with PenFed as part of my credit restoration journey. 

To further boost my chances to get a credit card with them, I even established a banking relationship with them first THEN I'll apply for their credit cards! Bullet proof, right?!  So in August 2021 (2 months ago), I opened not one, not two, but THREE accounts with them all on one day!!

Access America Checking - $500

Regular Share Savings - $5

Premium Online Savings - $150,000

A month would pass, in September 2021, I pulled the trigger and applied for their Power Cash Reward Visa credit card. DENIED! 😳 I was like **bleep**?! Got the denial letter and it said "recent bankruptcy, wait more time to reapply" 

I couldn't believe it! I have $150,505 in your bank!! I've read you've approved people $4000+ starting SL with less than a year bankruptcy DC and with lower credit scores!!!? Needless to say, I was deflated and irritated.

Another month goes by, on 10/8/2021, I decided to apply AGAIN for the same PCR credit card! 😆  This time, after two weeks, 9 phone calls, and 7 document uploads later, I got approved!  You ready for the "generous" starting credit line? They gave me **bleep**ING $1,500!!!! 🤣 ARE THEY SERIOUS!?! 

Oh well, something is better than nothing! 

Moral of the story, PenFed sucks! PenFed is very inconsistent with their approval. It's almost like it depends which UW you get with your app and if they're having a good day or not? Also, having a strong relationship does NOT help! If you're considering getting a credit card with them, no need to open an account first.

On a brighter note, my $150K is earning amazing dividends in their Premium Online Savings account just in two short months!

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Maybe you applied too quickly? I established a banking relationship more than a year BEFORE applying for a credit card(direct deposit part of my pay as well), and I actually had a lower credit score than you. My DC date was August 2019, banking relationship established July 2019, and I applied December 2020(approved), January 2021(approved) and then August 2021(approved). Also, without knowing everyone else's DPs, or really yours, it's hard to make any judgments as to why, outside of everyone's approval is profile dependent. 

Like, did you have a bunch of recent credit pulls? Recent credit approvals? Did you have anything on your credit report that shows positive payment history before applying? Any accounts with significant age that showed positive payment history? Like, I still have student loans that were never in the red and are aged at 18. This DP could have had a impact on my approvals. And then income. 

I'm sorry that you weren't satisfied with your approval and process it took to GET and approval. Apply for another in like 6-8 months(or not), as I'm sure you'll get a better approval.

[ToofDoc]

My Equifax FICO 9 is also over 700 🤷🏻‍♂️

Either or....maybe as other had said...credit score is just one component in UW's decision.

[CreditCuriosity]

Banks and CU's still have underwriting and doesn't really matter how much $ you have with a bank or cu as lending and banking is mostly separated.  You could easily yank that money after an approval of said CC and default on it again and be a liability and not much recourse other than garnishing your wages and the likes.  Anyways if you aren't happy their are other lenders out their that might like your 2 years post BK more then penfed such as Discover and Cap1, etc..  

Regardless congrats on your approval it is a start as you have many years until that BK is off your record, it doesn't mean you can't build credit lines with various institutions.  Also you will learn never to compare your profile and results to anyone else as each profile is different it is a futile experience.

[ToofDoc]

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@WavysMommy wrote:

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Maybe you applied too quickly? I established a banking relationship more than a year BEFORE applying for a credit card(direct deposit part of my pay as well), and I actually had a lower credit score than you. My DC date was August 2019, banking relationship established July 2019, and I applied December 2020(approved), January 2021(approved) and then August 2021(approved). Also, without knowing everyone else's DPs, or really yours, it's hard to make any judgments as to why, outside of everyone's approval is profile dependent. 

Like, did you have a bunch of recent credit pulls? Recent credit approvals? Did you have anything on your credit report that shows positive payment history before applying? Any accounts with significant age that showed positive payment history? Like, I still have student loans that were never in the red and are aged at 18. This DP could have had a impact on my approvals. And then income. 

I'm sorry that you weren't satisfied with your approval and process it took to GET and approval. Apply for another in like 6-8 months(or not), as I'm sure you'll get a better approval.

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You could be right...but I believe my UW just was one of those more conservative UWs. We've all read people that have gotten approved WITHOUT prior banking relationship with PenFed and we definitely read people had applied and have gotten approved much sooner after their discharge than mine. So in essence, I shouldn't really even need a banking relationship first to get approved. AND that's why I waited one month after I opened my new accounts with them to apply for their credit card! On top of that, I dumped $150K to show that I am serious for a strong relationship! AND 3 accounts, right? That's why I did what I did so they see I'm committed. Perfect example that "money can't buy love" 😆

As far as my credit report goes, I also had MANY student loans on my credit report with 20+ years positive no late history and I had 1 hard inquiry prior to this PenFed application so wasn't any of these potential reasons for such low SL. No any other baddies. Strong income, etc.

Listen, I am grateful that I have earned their credit business (foot in the door), $1,500 will increase later but just surprised on the following:

1) how much money in their accounts don't matter

2) how many accounts with them don't matter

3) my starting SL is so much lower than others in similar or even worse credit DPs

4) they denied me one month earlier telling me to wait longer then approved me a month later 

[ToofDoc]

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@CreditCuriosity wrote:

Banks and CU's still have underwriting and doesn't really matter how much $ you have with a bank or cu as lending and banking is mostly separated.  You could easily yank that money after an approval of said CC and default on it again and be a liability and not much resource other than garnishing your wages and the likes.  Anyways if you aren't happy their are other lenders out their that might like your 2 years post BK more then penfed such as Discover and Cap1, etc..  

Regardless congrats on your approval it is a start as you have many years until that BK is off your record, it doesn't mean you can't build credit lines with various institutions.  Also you will learn never to compare your profile and results to anyone else as each profile is different it is a futile experience.

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As much as you say we shouldn't compare, we ALL compare DPs on here!

That's why we use this forum to use as a reference and data! we see others with similar data and have gained success, we gain hope.

Of course I am not pissed that I only got $1,500 SL, just surprised in comparison to others. Therefore my post title....PenFed is inconsistent 👎

[CreditAggie]

Congratulations on your PenFed approval!