At $16K income, I would be pretty shocked if PenFed approves you for anything higher than $500, if at all. They don’t really like low income earners. If Navy Federal is an option, I would go there instead. Otherwise maybe look into Langley FCU. They seem to be friendly to low income.
I have 2 cards with over 15k credit limits plus the car loan (8k) not that big of a deal!!
Penfed looks very closely at your DTI and your overall credit lines versus your income and that is a big deal to them.
My DTI is around 30%
AMEX 1 - 800/17200 (Card always pay in full)
AMEX 2 - 75/1000 (Card always pay in full)
DISCOVER - 1200/15900 (Balance - 0% APR)
VISA - 70/600 (Card always pay in full)
I believe it would be a denial personally. They won't compete nor care to compete with Discover/Amex as they are both known to give big limits for not a large income. You can certainly try, but i think you would either be flat out denied or get a low cl such as 500-1k. We have no clue what your rent or car payment and student loan payments etc might be as well. Just my 2 cents, but you never will really know unless you try I suppose. My question is why do you want penfed when other lenders such as PayPal MC at 2% and such would be alot more accommodating to your income level, etc? PenFed has certainly tightened up over the last year or two as well
Yeah I definitely agree that the PayPal Cashback would be a great place to look. With those scores, Sync will definitely be feeling generous. They don't even look at DTI either, its your net annual income they care about.
Im proof Penfed doesnt like low income earners. If we dont feed the head honcho over there with profitability, he/she will just have the lower beings feed us a steady diet of Turbo Tax and endless , useless, emails about exvlusive deals for its members
ps. When i had a card, i got $500, fought tooth and nail for 1k increase after a year, then nothing. Honestly Op, use your hp and get a better card
Thanks, do you recommend any other card?
As for other cards, it would help to know why you want the Penfed Plat Rewards. The rewards aren't all that good, about 2.5% on groceries (easy to beat) and 4.3% on gas (which is OK) and a horrible 0.8% elsewhere. I keep mine only for supermarkets abroad, which is a fairly niche use!
So if it's for gas, maybe it's worth a try as better options are also hard to get (FNBO, Fort Knox), otherwise not
Sam's Club MC is 5% on gas anywhere including at Sam's Club. And given that Sam's Club gas prices are also discounted quite a bit, that to me would make it worth a membership if you didn't already have one, assuming that there's one or more Sam's Club near you. Just a thought.
As for PenFed, I am in a different situation (income is not my problem - account age and credit-seeking behavior are my problems). Instantly rejected for a card the day I joined PenFed as a member. I called and the very friendly gentleman I spoke with said there's nothing he could do to reconsider, it's simply up to their computers. This is a couple of days after my local CU gave me a signature rewards Visa with a $5,000 limit. Not exactly apples to apples, though; I have been a member of my local CU for over 32 years. Anyway, based on that experience, PenFed seems to be at least sort of picky.