Questions about requesting a credit limit increase and graduating from my NFCU nRewards cards

[creditalchemist]

So It’s been 7 months now since I opened a NFCU nRewards card. ($200)

The last 2 months my utilization has been above 30%, however I’ve paid my minimum payments whenever I did not pay down my balance in full or within 90-95%.

So I have yet to see an increase or graduation so far.

My current balance is $132.85 with $111.82 available of $200

My questions are:

A) Should I pay down the balance before I request a CLI?

B) How much realistically should I expect my CLI to be once my card graduates?

C) Are there any other tips you might recommend before I apply for a CLI?

Thanks guys!

[freshstart26]

I did not carry a balance on my Nsecured card. I would charge and then pay it off. I think they switched me to Cash Rewards with a $2,000 limit at 7 months.

[USMC_Winger]

@creditalchemist wrote:

A) Should I pay down the balance before I request a CLI?

B) How much realistically should I expect my CLI to be once my card graduates?

C) Are there any other tips you might recommend before I apply for a CLI?

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I'm in a similar boat.  After 7 months, my Navy Fed nRewards card graduated yesterday to a Cash Rewards card with a $2,000 CL.  They released my $1,000 deposit this morning.  I requested a CLI online when I didn't automatically get one after 91 days/3 full billing cycles.  It gave me an error code and told me to call Navy Fed, so I did.  Denied.  My deposit was my CL the whole 7 months.

To answer your questions:

A)  Pay down the balance if you can, but realize that Navy Fed knows a $200 credit limit is going to have high utilization.  (That's why the minumum deposit for the secured nRewards cards used to be $500.)  But remember, it looks better if you pay more than the minimum monthly payment.  Paying your balance down more than once per month, every month, looks better, too.

B)  When I was on the phone with the CSR for my CLI request, she said most people were opening their nRewards cards with a $200 deposit, and the 3-month CLI put them up at $500 or $1,000.  (These limits are lower than normal, I suspect, due to Covid-financial-caution.  Likewise, the graduation CL is going to be cautionary.)  When your nRewards graduates, expect a $2,000 CL, but request a higher limit, because some people who request it are getting higher CLs if their income, credit profile, and history with Navy Fed warrants it.

C)  1.  Before you ask for a CLI, lock (don't freeze!) your [Mod edit] credit reports hours (or even a day) beforehand, so you can only get hit with a SP.  If you can't lock your CRs, use the online credit limit request link on the NFCU mobile app or website instead of phoning in the CLI request, which often results in a HP.

    2.  Pay down your Navy Fed CC balance at least twice per month, preferrably to zero.

    3.  Do whatever you need to do to increase your FICO score if it's low, because I think that's one criteria for graduation, and probably the 3-month CLI, too.  I had no FICO score until my 6th monthly report, but Navy Fed had already grabbed my EQ CR and non-existant FICO 9 score at the beginning of that month.  So, I had to wait for the following month, when it finally showed my 729 score, which is good enough for graduation.  Hallelujah!

Good luck!

[creditalchemist]

Thanks SO much for your feedback! (its encouraging)

CONGRATULATIONS on your success!

A)  Pay down the balance if you can, but realize that Navy Fed knows a $200 credit limit is going to have high utilization.  (That's why the minumum deposit for the secured nRewards cards used to be $500.)  But remember, it looks better if you pay more than the minimum monthly payment.  Paying your balance down more than once per month, every month, looks better, too.

Yes, you're right! I noticed how quickly my scores shoot right back up when I do so.

B)  When I was on the phone with the CSR for my CLI request, she said most people were opening their nRewards cards with a $200 deposit, and the 3-month CLI put them up at $500 or $1,000.  (These limits are lower than normal, I suspect, due to Covid-financial-caution.  Likewise, the graduation CL is going to be cautionary.)  When your nRewards graduates, expect a $2,000 CL, but request a higher limit, because some people who request it are getting higher CLs if their income, credit profile, and history with Navy Fed warrants it.

Great tip. I've heard that its often easier to get approved for a different card than it maybe for getting a higher increase. I'm sure results vary.

C)  1.  Before you ask for a CLI, lock (don't freeze!) your [Mod edit] credit reports hours (or even a day) beforehand, so you can only get hit with a SP.  If you can't lock your CRs, use the online credit limit request link on the NFCU mobile app or website instead of phoning in the CLI request, which often results in a HP. 

GREAT tip! I've heard this one on a few FB groups. Glad you reminded me.

Question. [Mod cut: This discussion is not allowed.]

    2.  Pay down your Navy Fed CC balance at least twice per month, preferrably to zero.

Check! ✔️

    3.  Do whatever you need to do to increase your FICO score if it's low, because I think that's one criteria for graduation, and probably the 3-month CLI, too.  I had no FICO score until my 6th monthly report, but Navy Fed had already grabbed my EQ CR and non-existant FICO 9 score at the beginning of that month.  So, I had to wait for the following month, when it finally showed my 729 score, which is good enough for graduation.  Hallelujah!

I didn't realize NFCU used FICO 9 I thought they used  FICO 8 for credit card related approvals

Yeah , I'm at 620 now. I need to get a couple of bogus closed accounts removed. Gonna dispute them today.

Thanks again!

[USMC_Winger]

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@creditalchemist wrote:

Thanks SO much for your feedback! (its encouraging)

CONGRATULATIONS on your success!

Thanks!

[Mod cut: This discussion is not allowed.]

I didn't realize NFCU used FICO 9 I thought they used  FICO 8 for credit card related approvals

You could be right!  I assumed what they're showing us when we log into our online accounts is what they're judging us by.  Perhaps someone who knows for sure can clarify this for us.

Yeah , I'm at 620 now. I need to get a couple of bogus closed accounts removed. Gonna dispute them today.

Thanks again!

You're welcome and good luck to you!

[K-in-Boston]

Reminder: Any discussion of selectively locking one or two credit bureaus in an attempt to get a lender to pull a more favorable report is not allowed on the myFICO Forums.

[creditalchemist]

*Noted!

[USMC_Winger]

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@K-in-Boston wrote:

Reminder: Any discussion of selectively locking one or two credit bureaus in an attempt to get a lender to pull a more favorable report is not allowed on the myFICO Forums.

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Please note I wrote in my response about Navy Fed not checking creditalchemist's most favorable CR.  (I did explain why that rarely happens, and I agree now, in retrospect, that my explanation should be edited out, because the unethical could use it as a "how-to."  My apologies.)

To be clear, I'm not advocating forcing any financial institution to pull a more favorable report.  Multiple mod editing of my messages makes it look like I did, when I did not.  Look in message #3:  I advocated locking, "so you can only get hit with an SP."  When creditalchemist locks the CRs, Navy Fed will look at a CR for the CLI and, in creditalchemist's case, it won't be the most favorable one.

[CreditMagic7]

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@freshstart26 wrote:

I did not carry a balance on my Nsecured card. I would charge and then pay it off. I think they switched me to Cash Rewards with a $2,000 limit at 7 months.

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+1

This ^^^is exactly the progression i been using on my own nRewards Secured from NFCU. Mine opened in Oct but i dismissed the Nov statement as partial. Even though the great folks at Navy told me recently that in April they will review, i'm itching at the boots to get that thing unsecured too.

[Anonymous]

Hey everyone,

Just got this email and I am almost to the 4th statement. Should I just take is an an fyi?