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NFCU Secured Card Questions

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Regular Contributor

NFCU Secured Card Questions

I recently was approved for membership to NFCU. I applied for one of their cards right away but was denied. Should I go for the secured card to get my foot in the door? I'm hesitant to tie up $500 into a secured card but am willing to do it to establish a relationship with NFCU as I have heard great things.

 

When does the card usually graduate? Anything else I should know? Any help is much appreciated!!

Message 1 of 15
14 REPLIES 14
Valued Member

Re: NFCU Secured Card Questions

I will tell you yes.  Better yet, take out a $500 secured loan, then fund a $500 secured credit card with the loan proceeds.  Pay off the loan (just set up auto payments), charge and pay off your credit card either over time but nothing less than 6 months.  Both report to all three.  The card will become unsecured when the credit is paid.  Mine auto upgraded from 500 to 3000, then to 7000, then to 10000, etc.  I feel it is the most frugal but calculated way to get in the door while still re-establishing.  I actually did all mine over the phone and even asked if what I wanted to do was possible.  She said she had never heard of it but yes, it was very possible and that she would recommend it next time.  I think I actually learned it here.  Two for the price of one and best $500 I ever spent.  Just my .02

 

CH13. Filed 2010, Discharged 2014, All fell off APR 2017.
Current Scores (4/30/17): 799 Transunion, 822 Equifax, 792 Experian
Re-stablished with a $500 NFCU secured loan that funded a $500 NFCU secured CC .
Current: NFCU Rewards (20K), NFCU Signature Rewards (20K), NFCU CLOC ($15k),PENFED Travel Rewards AMEX (20k), PENFED Platinum Rewards (20k), BankAmericard Travel Rewards Visa (20K), BankAmericard Alaskan Air Signature (21k), Barclaycard (15K), Discover Card iT (12K)
Message 2 of 15
Regular Contributor

Re: NFCU Secured Card Questions

Thank you!! How exactly does that secure loan work? 

 

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card? 

 

 

Message 3 of 15
Moderator

Re: NFCU Secured Card Questions


@itspnutbutterkellytime wrote:

Thank you!! How exactly does that secure loan work? 

 

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card? 

 


The secured credit card and secured loan are really two different topics. 

 

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's.  You can find loads of information on that in @CreditGuyInDixie's fantastic thread here:  http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines.  I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.  Smiley Happy

Message 4 of 15
Super Contributor

Re: NFCU Secured Card Questions

Thanks for the kind word, UncleB!

Message 5 of 15
Frequent Contributor

Re: NFCU Secured Card Questions


@UncleB wrote:

@itspnutbutterkellytime wrote:

Thank you!! How exactly does that secure loan work? 

 

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card? 

 


The secured credit card and secured loan are really two different topics. 

 

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's.  You can find loads of information on that in @CreditGuyInDixie's fantastic thread here:  http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines.  I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.  Smiley Happy


Curious what terms are better at Alliant?  From what I see, NFCU offers a lower rate as well as longer possible terms (up to 180 months).

 

Also, even if Alliant does offer better terms, if the OPs main concern is building a relationship with Navy, wouldn't it be more beneficial to have both products from the same bank to help build a history with them?


BK 7 Scores (12/2016): EQ-528. TU-486. EX-530.
Current Scores (11/2017): EQ-671. TU-665. EX-669.
Goal for 2017: 650's. - made it!! next stop 680's. www.cartkingz.com
Message 6 of 15
Moderator

Re: NFCU Secured Card Questions


@enjoimorenow wrote:

@UncleB wrote:

@itspnutbutterkellytime wrote:

Thank you!! How exactly does that secure loan work? 

 

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card? 

 


The secured credit card and secured loan are really two different topics. 

 

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's.  You can find loads of information on that in @CreditGuyInDixie's fantastic thread here:  http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines.  I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.  Smiley Happy


Curious what terms are better at Alliant?  From what I see, NFCU offers a lower rate as well as longer possible terms (up to 180 months).

 

Also, even if Alliant does offer better terms, if the OPs main concern is building a relationship with Navy, wouldn't it be more beneficial to have both products from the same bank to help build a history with them?


Alliant is well-known for allowing you to pre-pay on installment loans without shortening the overall length of the loan (which can provide a FICO boost for people who don't have an installment loan reporting).  That's what I meant by 'terms'... when used in this way rates aren't as important.  The data on NFCU isn't as complete, and since things are always changing it's possible their installment loans can be used similarly.  I'll defer to others for updated information on that.

 

I'm still hopeful for feedback on NFCU's secured card from people who have experience with it...

Message 7 of 15
New Member

Re: NFCU Secured Card Questions

I opened a $500 secured card in September 2015. It didn't graduate until December 2016. When it graduated the limit was increased to $2000. I applied and was approved for a unsecured cashRewards card in October 2016. They started me with a $9500 limit and it's up to $18,500 now. When I was approved for the cashRewards I believe my fico was in the 590s range. Hope this is useful to you!

Message 8 of 15
Moderator

Re: NFCU Secured Card Questions


@glb8 wrote:

I opened a $500 secured card in September 2015. It didn't graduate until December 2016. When it graduated the limit was increased to $2000. I applied and was approved for a unsecured cashRewards card in October 2016. They started me with a $9500 limit and it's up to $18,500 now. When I was approved for the cashRewards I believe my fico was in the 590s range. Hope this is useful to you!


Thanks glb8... this is the type of info I was hoping for!  Smiley Happy

Message 9 of 15
Frequent Contributor

Re: NFCU Secured Card Questions


@UncleB wrote:

@enjoimorenow wrote:

@UncleB wrote:

@itspnutbutterkellytime wrote:

Thank you!! How exactly does that secure loan work? 

 

If I deposit $500 into my savings account with them and apply for a secured loan, will they then use the savings as collateral and deposit an additional $500? And what you're saying is to use that $500 for the credit card? 

 


The secured credit card and secured loan are really two different topics. 

 

Most people prefer to use Alliant for their share-secured loan since their terms are better than NFCU's.  You can find loads of information on that in @CreditGuyInDixie's fantastic thread here:  http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

NFCU is well-known on here for their secured credit cards that can graduate to unsecured and oftentimes quickly grow to significant credit lines.  I don't have personal experience with their secured card, but many on here do and I'm sure they'll be able to chime in shortly.  Smiley Happy


Curious what terms are better at Alliant?  From what I see, NFCU offers a lower rate as well as longer possible terms (up to 180 months).

 

Also, even if Alliant does offer better terms, if the OPs main concern is building a relationship with Navy, wouldn't it be more beneficial to have both products from the same bank to help build a history with them?


Alliant is well-known for allowing you to pre-pay on installment loans without shortening the overall length of the loan (which can provide a FICO boost for people who don't have an installment loan reporting).  That's what I meant by 'terms'... when used in this way rates aren't as important.  The data on NFCU isn't as complete, and since things are always changing it's possible their installment loans can be used similarly.  I'll defer to others for updated information on that.

 

I'm still hopeful for feedback on NFCU's secured card from people who have experience with it...


Ahh, I understand....

 

FWIW I have a secured loan with NFCU and I made several payments on it in the first month so it shows next payment as due 6/15.

 

I did make 3 different payments on it though in one month, and not a lump sum payment 3x the amount due, so not sure if that makes a difference.

 

I haven't had my secured card with them for a whole month yet so don't have much info on it yet.  I do like that it will let me schedule and make payments for any amount at any time, which is nice compared to capital one where I would have to wait several days for transactions to clear before it would let me schedule a payment.


BK 7 Scores (12/2016): EQ-528. TU-486. EX-530.
Current Scores (11/2017): EQ-671. TU-665. EX-669.
Goal for 2017: 650's. - made it!! next stop 680's. www.cartkingz.com
Message 10 of 15
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