Navy approval PL 25k but is it possible to increase credit card limit instead?

[Hutchman92]

Hello, so I've been working on my credit for a couple years now and wanted to test the waters. I've been carrying a high credit utilization due to unexpected trips recently. I applied for a 10k loan from my achieva credit union recently and was approved for 5k. Upon talking to underwriter they mentioned possibly of raising my credit card limit instead of doing the personal loan which would raise my limit and lower utilization. So instead of receiving a high interst personal loan for 14% I was able to raise my credit card limit with achieva from 3k to $8500! That's awesome and a huge win since that's now my biggest limit. 

with navy federal I've had a card for about 4-5 months. After 91/3 I applied for increase asking for 10k from 1k and they said that 2k was the max they could do. That was a month ago, now after the success with achieva I applied for a personal loan with navy and was conditionally approved for 25k at 18% so long as it pays off my debt directly. Ideally I would like to try the same tactic here and instead of a personal loan for 25k at 18% I would rather then increase my credit card my 10-20k to increase my limit and lower utilization. I messaged them explaining that it would be better for me to do a balance transfer on high interest credit card debt to nfcu card if they could raise my limit because my card is only 16% instead of 18% but I don't know if they'll do it. My thought is that if they would approve me for 25k personal loan then they should instead be able to raise my 2k credit limit to 10-20k and allow em to transfer over some of the debt (realistically around 5k) at the lower interest rate of 16% which I'll have a bonus soon and can pay it off. Just wondered if anyone had experience with this or tips. I tried for credit increase before applying for loan and was denied since they gave me the 1k increase a month ago but since they approved me for 25k loan I would think if I declined that they could instead add that as a credit card? At achieva I was able to talk to underwriter and explain the situation and even negotiate the amount they would increase limit by however at nfcu it seems I can only talk to customer service and the loan department and CC dept are separate. Any tips? Please help! Thank you. 

[Creditplz]

I believe NFCU can't do this... they are 2 different departments at NFCU unlike small CU where you talk to the UW to make a few changes more frequently. 

This is from what I know, maybe they changed?. 

[FinStar]

Unfortunately, that approach isn't going to work with NFCU. The lending department is walled-off from any direct customer interactions.  The products actually are not the same, one revolves, the other one doesn't -- regardless if both are unsecured. So, if NFCU denied a CLI, perhaps some time needs to pass before you can try the CLI again.

Also, it appears that the PL has a pretty high APR, is your APR on the card lower on higher then the proposed loan?

[Hutchman92]

Well maybe if they are truly separate departments and one doesn't mean anything to the other perhaps I could apply for a new card to receive a similar limit to what they are offering me on the personal loan? They did tell me that 2k was max limit for my current card (cash back green card) but perhaps there was a misunderstanding because  I've heard of people having 25k limits with the green cash back card. I even ask for reconsideration a few weeks ago when they only added 1k too it but there's just be a way to have a large increase especially if they're offering me 24k loan. Need some nfcu peeps! Also the Cc cash rewards is 16% and the proposed loan is 18%

[Hutchman92]

I understand that they are different products but my thought process is that an unsecured loan is the hardest loan to get approved for and was approved for 25k so my revolving card with them should easily be at 10k+ for my credit card. Just trying to think out if the box here. 

[CreditInspired]

---

@Hutchman92 wrote:

Hello, so I've been working on my credit for a couple years now and wanted to test the waters. I've been carrying a high credit utilization due to unexpected trips recently. I applied for a 10k loan from my achieva credit union recently and was approved for 5k. Upon talking to underwriter they mentioned possibly of raising my credit card limit instead of doing the personal loan which would raise my limit and lower utilization. So instead of receiving a high interst personal loan for 14% I was able to raise my credit card limit with achieva from 3k to $8500! That's awesome and a huge win since that's now my biggest limit. 

with navy federal I've had a card for about 4-5 months. After 91/3 I applied for increase asking for 10k from 1k and they said that 2k was the max they could do. That was a month ago, now after the success with achieva I applied for a personal loan with navy and was conditionally approved for 25k at 18% so long as it pays off my debt directly. Ideally I would like to try the same tactic here and instead of a personal loan for 25k at 18% I would rather then increase my credit card my 10-20k to increase my limit and lower utilization. I messaged them explaining that it would be better for me to do a balance transfer on high interest credit card debt to nfcu card if they could raise my limit because my card is only 16% instead of 18% but I don't know if they'll do it. My thought is that if they would approve me for 25k personal loan then they should instead be able to raise my 2k credit limit to 10-20k and allow em to transfer over some of the debt (realistically around 5k) at the lower interest rate of 16% which I'll have a bonus soon and can pay it off. Just wondered if anyone had experience with this or tips. I tried for credit increase before applying for loan and was denied since they gave me the 1k increase a month ago but since they approved me for 25k loan I would think if I declined that they could instead add that as a credit card? At achieva I was able to talk to underwriter and explain the situation and even negotiate the amount they would increase limit by however at nfcu it seems I can only talk to customer service and the loan department and CC dept are separate. Any tips? Please help! Thank you. 

---

IMO, it appears NFCU sees your UT as too high; and the approval is conditional. You only will get the loan if used to pay off that CC debt. This is 100% different than giving you another CC that if you max it out, would add to your already high debt.

And now you've added another CC for $8.5K, which if it's reporting, NFCU may see this and your applications for a CLI and PL as credit-seeking behavior.

If you don't accept their condition to pay off your debt, you'll neither get the PL nor a CLI. 

Choose wisely. Just my 2cents. 

[Hutchman92]

Yes thats correct that it was conditionally approved. However I only have 3-5k max debt because the couple older charge offs I have are considered closed accounts and thus not able to be included as they have tk be current not closed accounts. But yes just as I mentioned it was conditional. I was asking if anyone had experience in this or an alternate solution. Did you have any suggestions or feedback?

[K-in-Boston]

NFCU now requires 6 months between credit line increases.  As you received an increase last month, you will be ineligible until that time passes.  When they stated that $2k was the max, that was for your account not the card.  With the exception of Flagship ($80k) the maximum credit line on all other credit cards is $50k.

[Hutchman92]

It doesn't make sense they're willing to loan 25k unsecured loan but not go over 2k for my account.