Considering applying for PenFed CC

[Anonymous]

I'm considering applying for a PenFed CC (not sure which one yet), but I wanted to ask some questions about my chances of being approved first. 

Here is some data from my Equifax score/report.  I ordered the ScoreWatch thingie from this site today, and also through my job I was able to get a free Equifax report which I pulled 2 days ago.

Score: 771

Oldest account:  8 years, 8 mos

Avg age of accounts: 5 years

No derogs (the other CRA's have a 30 day late, but that apparently wasn't reported to EQ)

Open installment accounts:  I have an auto loan and 2 student loans.

Open revolving accounts:  

I'm a bit confused about this one.  The Score Power report I got with ScoreWatch just lumps all my accounts together and doesn't show which are open and which are closed.  But the EQ report I got directly from them shows 4 CC open, all with $0 balance: 

Bank of America 6700 CL

US Bank 4000 CL

HSBC/Best Buy 2000 CL

Credit First/Firestone 585 CL

It's confusing that it shows the BoA and US Bank accounts open.  I paid the balances off through a CCCS back in Sept 2008 and according to both banks, the accounts were closed as part of the agreement with the CCCS.  

The newest account is the auto loan which was opened 11 months ago (this is the only thing that the ScorePower report says is negatively affecting my score). 

No hard inqs in the past year.  

So here are my questions about whether or not I should apply for a PenFed card.

1. Does it matter how many closed accounts I have?

2. Will PenFed frown on my having 4 open CC's on the report (even though 2 are technically closed)?

3. Should I wait until April when the auto loan will have been open for a year?  

4. Do the balances on the auto loan and the student loans matter?

5. When it comes to util, does PenFed (or any other creditor, for that matter) look at the high balances for the CC's?  Since I paid everything off in Sept, I've only used the Best Buy card twice at less than 9% of my CL and PIF before the grace period ended.  But in the past my util was not so great.

6. From some of the threads about the PenFed CC's that I've read, it seems that you can request the CL that you want.  How much should I request?  Ideally I'd like about $10k.  

7. If it is denied, will that hurt my score at all?  

[haulingthescoreup]

I think you're going to be fine. They should love your EQ score, lack of inqs, and relatively clean reports. Does the credit counseling show on your EQ report?

On your myFICO reports, click "Printable Version" to get a more manageable view, which will show open and closed status.

PenFed doesn't mind your having open accounts. They get excited when they see lots of recent inquiries for credit, especially CC's, as this makes them suspicious that you're in financial trouble and hunting for credit that you can't handle.

Your car loan is probably OK, although it wouldn't hurt to wait 12 more days until April.

I would ask for $10K. I think that they will counter if that's too high, but check the other threads for this.

And since it looks like you've been doing your research, I assume that you know about how to join the CU first and then apply for credit products. The Plat Plus Visa, which is the "gas card", is the one to go for. Great card! It really cheered me up during the most recent gas crisis.

[Anonymous]

Thanks, haulingthescoreup.  I don't see any mention of the CCCS on any of my accounts.  I think I will wait until April to apply.  I'm excited hehe.  And yes, I did check out the eligibility info on the PenFed website.  I'll come back and post how it goes. 

[Cory]

Looks good to me. I'll say go for it.

Cory

[Cory]

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@haulingthescoreup wrote:
I think you're going to be fine. They should love your EQ score, lack of inqs, and relatively clean reports. Does the credit counseling show on your EQ report?

On your myFICO reports, click "Printable Version" to get a more manageable view, which will show open and closed status.

PenFed doesn't mind your having open accounts. They get excited when they see lots of recent inquiries for credit, especially CC's, as this makes them suspicious that you're in financial trouble and hunting for credit that you can't handle.

Your car loan is probably OK, although it wouldn't hurt to wait 12 more days until April.

I would ask for $10K. I think that they will counter if that's too high, but check the other threads for this.

And since it looks like you've been doing your research, I assume that you know about how to join the CU first and then apply for credit products. The Plat Plus Visa, which is the "gas card", is the one to go for. Great card! It really cheered me up during the most recent gas crisis.

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Haulingthescoreup, they have this card? The Plat Plus Visa, or do you mean the Plat Cash Rewards Visa?

In your opinion, is that the better card? I know the Gold's rate is pretty good, but no real rewards behind it.

Cory

Message Edited by Cory on 03-20-2009 07:54 AM

[Anonymous]

I think the card he's referring to is the Plat Plus Cash Rewards.  Also, if you look at the Disclosures & Terms link, the Visa Gold is going up to 12.49% APR as of 04/01/09.  So not a much better rate than the rewards card, and without the rewards hehe.  And the Cash Rewards is a fixed APR  Doesn't seem that the Gold is fixed, though I'm not certain.

[Cory]

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@Anonymous wrote:
I think the card he's referring to is the Plat Plus Cash Rewards.  Also, if you look at the Disclosures & Terms link, the Visa Gold is going up to 12.49% APR as of 04/01/09.  So not a much better rate than the rewards card, and without the rewards hehe.  And the Cash Rewards is a fixed APR  Doesn't seem that the Gold is fixed, though I'm not certain.

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Oh yeah, your right. The apr is going up to 12.49%. Maybe their trying to push more of the Platinum Cash Rewards Visa Cards more, by discouraging the other.

Cory

Message Edited by Cory on 03-20-2009 08:34 AM

Message Edited by Cory on 03-20-2009 08:34 AM

[haulingthescoreup]

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Cory wrote:

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@Anonymous wrote:
I think the card he's referring to is the Plat Plus Cash Rewards.  Also, if you look at the Disclosures & Terms link, the Visa Gold is going up to 12.49% APR as of 04/01/09.  So not a much better rate than the rewards card, and without the rewards hehe.  And the Cash Rewards is a fixed APR  Doesn't seem that the Gold is fixed, though I'm not certain.

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 Oh yeah, your right. The apr is going up to 12.49%. Maybe their trying to push more of the Platinum Cash Rewards Visa Cards more, by discouraging the other.

Cory

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Duh me, you're both right --I had to pull out my wallet and look at it.

It's what everyone informally calls the "gas card."

Rewards cards almost always have higher APR's than non-rewards. That's interesting that the APR on the Gold is rising. Another possibility is that the Gold might tend to go to those with weaker credit, so they're seeing their APR's rise.

I still don't see how PenFed can make money off the Plat Cash Rewards, but hey, I'll play along as long as they do!

(I'm a "she", btw. )

[Anonymous]

Oops, sorry about that, haulin'.  I wasn't sure but I didn't want to do the whole he/she thing!   >.<   Is there somewhere in people's profiles where it shows that?

[haulingthescoreup]

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usagichan wrote:
Oops, sorry about that, haulin'.  I wasn't sure but I didn't want to do the whole he/she thing!   >.<   Is there somewhere in people's profiles where it shows that?

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lol, no there isn't that I'm aware of. It's something that you just sort of pick up on after a while.

No prob, it happens all the time.