PenFed Visa App -- Low Income CL Request?

[colline]

Hi, all!

First of all, I apologize for yet ANOTHER PenFed thread - please bear with me!

As a 21-year-old student who works part-time, I probably make barely $15,000 a year but have pretty high credit scores due to a good mix of installment and revolving credit,being an AU on n aged in-good-standing account, and general good care in new inquiries, bill paying, etc.

Given my high credit EQ credit score, no recent inquiries for 2 years - which, as many on this board have mentioned, is not attractive to PenFed - but poor income, I am seeking advice as to what CL I should request. My income level is going to bring down my application, undoubtedley, but is this a deal-breaker? Or should I just be cautiously conservative with my CL request? I honestly don't mind a pretty low line, because I am primarily wanting to start a relationship with them.

Any ideas or thoughts? You all are pretty well-informed and seem willing to help out, so I am appreciative of that!

My scores:

EQ FICO: 804

EX FAKO: 782

TU FAKO:786

Current CCs:

Chase Freedom - $4,000
Citi Dividend Platinum Select - $11,400
Local CU Visa - $2,000
Bank of America CC (AU) - $24,500

Message Edited by colline on 07-17-2009 09:43 AM

[Anonymous]

It's pretty much a direct correlation:  Low Income = Low CL.  You can always grow the CL over time.  But if you ask for a large CL when you are a student, part time employed and low income, this could indicate to them a high risk level....and PenFed is not a high risk lender by any stretch of the imagination.

IMO ask for no more than $1000 CL.  Treat it right and over time you can grow it.  But as a student, young and just starting out, you really don't have need for high CL's initially.  And FICO doesn't punish for not getting high CL's, just high utilization and multiple balances (as well as young AAoA).

Good luck

[haulingthescoreup]

+1

Look on PenFed as a long-term investment. Be patient and very, very responsible, and this will be an excellent card that will be great for you.

[smallfry]

Since you are a student making 15K how much can you possibly run through your 2 current cards? 11K with Citi is in jeopardy if you don't use it. That said I would ask for $2500.

[nathan]

Yours scores look great, congratulation!; but unfortunately penfed is unpredictable. I am still shocked they gave me 15k with a 659 eq with one unpaid collection about 1.5 yrs ago. Today, they will curse me if I dare. I recently called them to asked their cut off for a va mortgage, and I was told a 680 mid score is the least they will accept. This just solidify the concession that penfed is ultra conservative now. If you must apply, be very conservative with the amount you request because the amount may be a deal breaker; they may deny you outright or if you are lucky, they may counter offer a lower amount. When i got the first card, I got greedy and aplied for a second card and i was denied instantly. Even though my eq is now in low 700s and derog free, I am still scared to even ask for a cli. If they don't offer me one, I ain't asking. If you can get membership with navyfed, you could possibly get more, and your approval is almost guaranteed especially with your great eq score. Good luck and let know how it went.

[creditwherecreditisdue]

If you have no recent INQ (6+) months, no new accounts (6 months to 1 year) and close to zero reporting utilization I would call a CSR and find out what the min CL's is for the Cash Rewards Card and app for $2.5K or the minimum limtit, whichever is less. Expect to have to verify your income.

[colline]

---

@smallfry wrote:
Since you are a student making 15K how much can you possibly run through your 2 current cards? 11K with Citi is in jeopardy if you don't use it. That said I would ask for $2500.

---

Smallfry -- Because I know that PenFed frequently seeks income verification, I listed the amount that I earn from my hourly-wage job; this excludes my savings, parental remittances, money from a student loan, etc. So I use my Citi card frequently, and make a point to charge tuition and other big-ticket items to the account. Citi just increased my CL by $1,400 two months ago, so I doubt that I am in jeaopardy of losing the line.

Thanks for all the great advice. I will definitely request a low CL ($2,500, it seems) to increase the liklihood that I'll be approved, then work my way toward a higher line over time.

I'll definitely let everyone know how it goes.

[creditwherecreditisdue]

Make sure you ask for a high enough CL to get the Cash Rewards Visa. This is pretty much the best card out there for a PIF'er. It is a good BT card, too. That's why I have two of them.

[smallfry]

---

@colline wrote:

---

@smallfry wrote:
Since you are a student making 15K how much can you possibly run through your 2 current cards? 11K with Citi is in jeopardy if you don't use it. That said I would ask for $2500.

---

Smallfry -- Because I know that PenFed frequently seeks income verification, I listed the amount that I earn from my hourly-wage job; this excludes my savings, parental remittances, money from a student loan, etc. So I use my Citi card frequently, and make a point to charge tuition and other big-ticket items to the account. Citi just increased my CL by $1,400 two months ago, so I doubt that I am in jeaopardy of losing the line.

Thanks for all the great advice. I will definitely request a low CL ($2,500, it seems) to increase the liklihood that I'll be approved, then work my way toward a higher line over time.

I'll definitely let everyone know how it goes.

---

Tuition through the card? Well in that case it probably doesn't take long to run the card up. The reason I brought up Citi is because I was the recipient of a large CLI last year because the card wasn't used enough.  

[creditwherecreditisdue]

---

smallfry wrote:

Tuition through the card? Well in that case it probably doesn't take long to run the card up. The reason I brought up Citi is because I was the recipient of a large CLI last year because the card wasn't used enough.  

---

Citi can be really odd like that. If you don't use their card much they will either give you a nice CLI or cut you. Go figure!

In my case it was a CLI. I carry my Diamond Preferred, but put next to nothing on it. It is my "go mad card". If I ever completely wig out it has an untapped CL of sufficient size (and a very low APR) that I could go just about anywhere. That said I hope I don't have to resort to a test run during this hurricane season!