NFCU vs. Discover?

[Anonymous]

Hey, everyone!

I'm new to the forum, but I've been a long-time lurker. I'm currently debating between applying for a NFCU cashRewards card or a Discover it card.

I already did the pre-approval for Discover and was offered either the it or the Chrome card. However, I have read so much about NFCU and their generous limits. (I'm already a member).

So, which would you apply for and why? I have three inquiries, no collections, several late payments, and two charge-offs - both with $0 balances. So, essentially, no debt. I'm currently hovering in the mid-600s across the board, but I just paid off two cards, so I expect a little score boost once the new, lower utilizations report next week.

Thanks in advance!

(Re-post because I'm not sure where to ask this question...)

[Adkins]

NFCU. They tend to be generous to rebuilders. Wait until your lower balances post to the CRAs and then apply. 

[Anonymous]

NFCU is definitely more generous than most creditors and I love doing business with them, but I also really enjoy my Disover it card.

I'd say go for both honestly! Which navy card are you looking at?

[Anonymous]

Thanks! Ultimately, I'd like to get both at some point. I didn't want to go crazy with inquiries as we may be applying for a mortgage in the fall, and I already have three. I didn't know if it was better to do it at the same time or to start with NFCU and apply for Discover after my scores go up a bit (even though I was pre-approved already...)

I was thinking of applying for the green cashRewards from NFCU. Thoughts on this one?

[UpperNwGuy]

You will earn 1.5% cash back on both the Navy card and the Discover card, but Discover will double your cash back at the end of the first year, making it effectively a 3% card for that first year.

[Adkins]

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@Anonymouswrote:
Thanks! Ultimately, I'd like to get both at some point. I didn't want to go crazy with inquiries as we may be applying for a mortgage in the fall, and I already have three. I didn't know if it was better to do it at the same time or to start with NFCU and apply for Discover after my scores go up a bit (even though I was pre-approved already...)

I was thinking of applying for the green cashRewards from NFCU. Thoughts on this one?

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If you are planning on applying for a mortgage in THIS coming fall, I would NOT apply for a new credit card right now. I would not apply for any new credit, period. Do that AFTER you've closed and signed on the house! (And the keys are in your hand!)

[Anonymous]

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@UpperNwGuywrote:

You will earn 1.5% cash back on both the Navy card and the Discover card, but Discover will double your cash back at the end of the first year, making it effectively a 3% card for that first year.

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yeah the 1.5% rewards rates for the cashrewards get overshadowed by my other cards most of the time, but it's super easy to PC navy cards (except for the more rewards card)

It sounds like you're refering to the discover miles card and not the discover it (discover it has rotating 5% catagories that change every quarter) if youre debating between cashrewards and discover miles, I'd definitly go for cashrewards, mainly because they're not different in rewards and discover is not always excepted. Definitly take into consideration what adkins said tho

[Anonymous]

I figured since a mortgage was at least 6+ months this away, I'd be okay? I already had a pre-approval, but we decided to wait a while to build our down payment up rather than scramble to get funds together at the last minute.

While the mortgage timeline is flexible, I definitely don't want to wait too long to apply for anything...which is why I was thinking ONE out of Discover or NFCU for now. Or maybe I'm just confusing myself and making everything worse...

[Adkins]

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@Anonymouswrote:
I figured since a mortgage was at least 6+ months this away, I'd be okay? I already had a pre-approval, but we decided to wait a while to build our down payment up rather than scramble to get funds together at the last minute.

While the mortgage timeline is flexible, I definitely don't want to wait too long to apply for anything...which is why I was thinking ONE out of Discover or NFCU for now. Or maybe I'm just confusing myself and making everything worse...

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Quite a few lenders like no new credit a year before you apply. Plus if you apply for new credit, your pre-approval might not be valid anymore because your credit history will have changed. I really suggest talking to your underwriter about applying for new credit before you do so. Also, stop in and check out the mortgage section of the forum. 

[Anonymous]

I'd also advise waiting if you're applying for a mortgage in under 12 mos. 

I'm an NFCU member as well who has both NFCU CCs and the Discover IT. NFCU is generous with rebuilders, but I've also found Discover to increase CLIs generously as long as you run a decent amount of spend through the card and PIF. Personally, I love the Discover IT for the rotating 5% back -- especially considering they double it for the first year. It ended up giving us over $1k in cash back in the first year and my CL grew by 400%.