Welcome to the forums! I was going to suggest actually grabbing the CU card since you were planning to sit tight (garden as we call it) for a while. It never hurts to have one of those, even if for low-APR "life happens" emergencies, plus there are scoring metrics that come into play based upon the number of cards currently reporting a balance on your reports.
Since you already have a secured card with NFCU, that changed my mind. The card will graduate, and Navy can be very generous with credit line increases and is very flexible with product changes so it can easily become a card that can provide value to you in the future rather than merely being a stepping stone. Spend amount isn't important for graduation; what's important is that you are using it and paying it on time every time. One thing you might consider is since you have one small recurring charge, try paying that off each month after it posts and before your statement closes. Since you are banking with Navy, that's just a couple of clicks. Could be worth a few points based on that "number of cards reporting a balance" I mentioned.
Navy uses a newer FICO 9 score rather than FICO 8 scores which are dominant in lending decisions. Give yourself some time away from new applications, and time for the payments to knock the balance down on that loan and you should be in great shape.
Excellent job on your rebuilding and we're glad you decided to post!
In regard to the "OK" on your credit reports for each month, that will happen whether a payment was made or not, as long as the account isn't in an unsatisfactory state. (As long as the lender reports to the bureaus each month.) There are some lenders whose internal checks won't register a balance and an on-time payment in their system if the statement balance ends up as $0, but to the best of my knowledge NFCU is not one of them. Could save you the additional payment it seems you are making.
@Trekkie0707 wrote:
@K-in-Boston wrote:Welcome to the forums! I was going to suggest actually grabbing the CU card since you were planning to sit tight (garden as we call it) for a while. It never hurts to have one of those, even if for low-APR "life happens" emergencies, plus there are scoring metrics that come into play based upon the number of cards currently reporting a balance on your reports.
Since you already have a secured card with NFCU, that changed my mind. The card will graduate, and Navy can be very generous with credit line increases and is very flexible with product changes so it can easily become a card that can provide value to you in the future rather than merely being a stepping stone. Spend amount isn't important for graduation; what's important is that you are using it and paying it on time every time. One thing you might consider is since you have one small recurring charge, try paying that off each month after it posts and before your statement closes. Since you are banking with Navy, that's just a couple of clicks. Could be worth a few points based on that "number of cards reporting a balance" I mentioned.
Navy uses a newer FICO 9 score rather than FICO 8 scores which are dominant in lending decisions. Give yourself some time away from new applications, and time for the payments to knock the balance down on that loan and you should be in great shape.
Excellent job on your rebuilding and we're glad you decided to post!
Thank you! Your response was so kind and insightful. I usually pay the NFCU card to $2 let the $2 post and then at the $2. It's a little extra work but I need the ok time payment history.
im really enjoying the boards so far. I'll keep sharing my journey and trying to help others where I can!
I've learned so much just lurking. Lots of experience and knowledge here.
I have found that there's one kind of card that is only available through credit unions. Not all credit unions have it, but many do. It's a non-rewards platinum card that has no balance transfer fee, no cash advance fee, and low interest. If the card being offered is that type of card I would grab it. That kind of card can be very useful, and is becoming more and more rare. E.g. the PenFed Promise card, which is the first card I ever obtained of that type, is no longer offered. Alliant CU and Langley FCU both used to have cards like that, and then nerfed them. Andigo Credit Union (formerly Motorola Employees Credit Union) offered a card like that, but was later merged into Consumers Credit Union which does not offer a card like that.
So if you are being offered that type of card, the smart play would be to grab it.
If, on the other hand, it's a garden variety platinum card with balance transfer fees and cash advance fees, I agree with everyone else that you should pass.
