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Need opinions on best path forward on CC apps/refi’s

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Established Member

Need opinions on best path forward on CC apps/refi’s

I’m a new NFCU member with checking/savings only at this point. I have two auto loans I want to refi with NFCU. I also would like to app for their cash rewards Visa card. I spoke with NFCU about the refi’s LTV and both cars are good there. I’m waiting for one card to report $0 balance  (on 7/6) which will put me at 7% util from 14%, which should raise my scores. Does the order make a difference here, refi/cc, cc/refi, all three at the same time?

 

My relevant DPs: Fico 8: EQ 630, TU 626, EX 666

DTI: 22% ish (I’m including insurance/utilities here, so bank will probably show DTI lower?)

Several late baddies, none since 12/18

No collections, no BK

Income: $216K

C1 QS: CL $1350

C1 QS1: CL $1000

Premier MC: CL $700

 

Also, any opinion on odds of NFCU approving refi’s based on above would be welcome. Thanks!

(This seemed like the best place for this question, apologies if this is the wrong place.)

Message 1 of 9
8 REPLIES 8
Frequent Contributor

Re: Need opinions on best path forward on CC apps/refi’s

Hi Illini80,

I have no experience with NFCU but IMHO re-fi would be the better 1st option (after the one card reports $0, and that's if you have another card reporting a balance).  Each app may impact your score (inquiry, AoYA reset, possibly AAoA), although NFCU may only require 1 inquiry for both lines.  The reasons I suggest the re-fi first is:

 

  1. Your interest rate will be negatively impacted by the lowering of your score the 1st app will likely cause if you go CC first.  I'll let someone else chime in regarding how that plays if it plays at all with your current scores in terms of loans and if NFCU would treat this differently if done at the same time.
  2. Also, IMO, CC's are easier to come by than loans.  The general rule is no new apps before applying for a loan (installment).  Both may not have ideal interest with your scores but if you report then pay off your CC balance you can avoid the interest, which you can't avoid with a loan. So seeking the better interest rate for the loan may be priority for you.


FICO 8 as of 08/02/19
FICO 9 as of 08/02/19
AoOA - 23Y5M | AoYA - 1Y | AAoA - 12Y
1 30 day late on EX (12/2012)
Open: 8 CC | 1 RC | 1 PLOC | 1 MTG loan | 1 Auto loan
Closed: 1 MTG loan | 1 Auto loan | 2 RC
Message 2 of 9
Established Member

Re: Need opinions on best path forward on CC apps/refi’s

Trudy,

 

Really appreciate your response. Both points make sense. When I spoke with NFCU they said it would be one HP if I apply for both refi’s within the same 30 day window. I plan to apply for both refi’s at the same time, maybe that helps me in some subjective way? Also, I wasn’t considering what you described in #2, about no CC apps before doing an installment loan app, thanks for pointing that out.

 

I’ll make sure to provide update on my results. Thanks.

Message 3 of 9
Established Contributor

Re: Need opinions on best path forward on CC apps/refi’s


@Illini80 wrote:

I’m a new NFCU member with checking/savings only at this point. I have two auto loans I want to refi with NFCU. I also would like to app for their cash rewards Visa card. I spoke with NFCU about the refi’s LTV and both cars are good there. I’m waiting for one card to report $0 balance  (on 7/6) which will put me at 7% util from 14%, which should raise my scores. Does the order make a difference here, refi/cc, cc/refi, all three at the same time?

 

My relevant DPs: Fico 8: EQ 630, TU 626, EX 666

DTI: 22% ish (I’m including insurance/utilities here, so bank will probably show DTI lower?)

Several late baddies, none since 12/18

No collections, no BK

Income: $216K

C1 QS: CL $1350

C1 QS1: CL $1000

Premier MC: CL $700

 

Also, any opinion on odds of NFCU approving refi’s based on above would be welcome. Thanks!

(This seemed like the best place for this question, apologies if this is the wrong place.)


I can't comment specifically to NFCU, but when I was looking for an auto loan and applied with DCU, they actually offered their CC with the same hard pull and I accepted. I don't think you can do it the other way around, so applying for the refinance first makes sense. Plus that is more important in the sense of saving you money in the long run. Good luck!



Aug 2019:

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Message 4 of 9
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Established Member

Re: Need opinions on best path forward on CC apps/refi’s

Thanks KLEXH25. Hopefully getting a much lower rate with the refi’s is definitely the main objective. I’ll ask NFCU if I can do the CC at the same time as the refi’s and maybe only use one HP.

Message 5 of 9
Established Member

Re: Need opinions on best path forward on CC apps/refi’s

Apps Update:

 

I applied for the two refi’s today with NFCU and they both got approved!

 

Car 1: 14.14% -> 9.19%, 70 months -> 60 months, saving $110 per month, saving thousands on interest

Car 2: 11.85% -> 9.19%, 50 months -> 48 months, monthly payment about the same, saving $2Kish on interest

 

CLOC app was declined, I’ll wait for denial letter and maybe try to recon this?

 

I applied for the Go Rewards card, was told under review, csr said probably because I applied for those two refi’s so it goes to manual review. At least it wasn’t declined immediately, so fingers crossed!

Message 6 of 9
Established Contributor

Re: Need opinions on best path forward on CC apps/refi’s

Yay!!! Congrats on your approvals!! It’s always nice to save money and pay it off faster. Hope you get the card too. Let us know.


Aug 2019:

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Message 7 of 9
Established Member

Re: Need opinions on best path forward on CC apps/refi’s

Update:

 

I got approved for the Go Rewards card, $1K SL. Obviously was hoping for a higher SL, but I’m going to take the advice of other posters and use this card and PIF, and hopefully my second card and CL for the GR card will be worth the wait!

 

I got an initial text that said my app was in review, then I got an email the next day asking for POI, sent that info yesterday and approved today. So total of 3 days from app to approval.

Message 8 of 9
Established Contributor

Re: Need opinions on best path forward on CC apps/refi’s

Congrats! Glad you got it 😊


Aug 2019:

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Message 9 of 9
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