Should I recon PenFed?

[brother7]

In mid-Feb, I joined PenFed CU. After learning they did a hard inq, despite having negatives on my CR, I figured I may as well apply for the Platinum Gas Cash Rewards card since they already have my CR in hand.  Of course, I was denied.

Reasons:

1. Collection account(s)
2. Proportion of balance to limit on accounts is too high
3. Too few accounts

Back then, my EQ was 669, my util was 70% (3540/5000), I had a recent 30-day late (June, 2008), and I had a public record (federal tax lien, released).

Now, my EQ is 699, my util is 2% (100/5000), and the public record has been deleted. The 30-day late remains. No new credit since so I think reason #3 above is still a concern.

I plan to PIF my one CC, then writing a GW letter to get all my lates removed.

Questions:

1. As I understand things, PenFed will keep a CR and use it for up to 90 days. Can I request that they recon using a new pull, and will this be a hard or soft pull?
2. With a 30-day late less than 1 year old, it is even worth recon'ing such a tough lender like PenFed?

[Anonymous]

I would suggest waiting the 90 days, and in the mean time clean the credit up, see if GW's work, etc.  I would suggest letting the late go past 1 year if the GW does not work.

Essentially, you don't want to make them scrutinize any harder than normal.  In fact, once your credit is as clean as you determine you are satisfied before applying, I would do the online loan application and ask for a relatively conservative CL and see if it instant approves.  If not, then speak with a LO about recon.

Don't rush it....impatience will hurt you .  Get your credit ducks in a row as you layed out.

1.  Pay your cc's, but allow a small balance to report on 1 account (helps boost FICO).

2.  GW your late(s) and wait for response.

3.  If GW does not work, consider waiting till late is 1 year old.

4.  Wait at least 90 days from your first app (do above during that time), then apply online asking conservative CL to see if you might get an instant approval.

5.  If not instant approved, then LO recon.