Penfed Overdraft LOC and AAOA. Need Input Please...

[Anonymous]

So my AAoA stands at 2y 4mos. I went ahead and opened a checking account w/ Penfed yesterday. Today, about 2 hours ago, I applied for and was instantly approved for an Overdraft LOC. Then it occurred to me that this DOES report as a revolving LOC on FICO and panicked because this will drop my AAoA to about 1y6m, dropping me below the 2 year threshold.
I called and spoke to a Penfed rep and let them know that if there was anyway to pull this back before it reports to the Big 3, I'd like to close it, but if it will report anyway, I'll just leave it as is. Rep says it hasn't officially been opened yet, that it's just in "approved status" and he can withdraw the app. So I had him do that.

I'm not overly confident that the rep knew what he was talking about or that the genie can be put back in the bottle at this point, but figured it was worth a try seeing as how only 2 hours had passed since online approval. I've no plans on apping for anything in the next few months, but would like to keep my FICO as high as possible due to several new accounts opened recently. I want to avoid any possible AA and improve my chances for upcoming CLIs in the next few months. Any opinions on whether this will actually report on CRs or not?

[FinStar]

If the funding process was cancelled in time by withdrawing the application, then it's likely that the tradeline will not get generated.

Just check your online profile in the next several days to confirm that a new account didn't get created.

In the future, better planning and research, done beforehand, will provide the benefit from making last minute unintended outcomes that can impact your overall profile.

[Anonymous]

"If the funding process was cancelled in time by withdrawing the application, then it's likely that the tradeline will not get generated.

Just check your online profile in the next several days to confirm that a new account didn't get created.

In the future, better planning and research, done beforehand, will provide the benefit from making last minute unintended outcomes that can impact your overall profile."

Thanks for the reply, that makes me feel better.

That's the thing though, I had researched all this back in early December when I first applied to Penfed and opened my savings account. I knew about the LOC reporting as a revolving account then. I had one of my CC apps I thought was a denial that turned into an approval (which lowered my AAoA further) and forgot to consider that when I app'd the LOC today. Consequence of trying to do too much at once with too little experience I suppose- lesson learned

[FinStar]

It happens. You can always call back and confirm that the application was indeed withdrawn (it should reflect the same status on the applications tab online).

[Anonymous]

Thanks, just checked online after reading your post and yes, I shows under Inactive Applications as "withdrawn". Perfect!

[Anonymous]

I am a Penfed member as well.  After multiple inaccurate answers to my questions by frontline CSR's over several past phone calls, I always ask to speak to a supervisor when I need anything.  They are more knowledgeable, more experienced, and understand their system so they can advise you of potential issues.

[Anonymous]

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wrote:
So my AAoA stands at 2y 4mos. I went ahead and opened a checking account w/ Penfed yesterday. Today, about 2 hours ago, I applied for and was instantly approved for an Overdraft LOC. Then it occurred to me that this DOES report as a revolving LOC on FICO and panicked because this will drop my AAoA to about 1y6m, dropping me below the 2 year threshold.
I called and spoke to a Penfed rep and let them know that if there was anyway to pull this back before it reports to the Big 3, I'd like to close it, but if it will report anyway, I'll just leave it as is. Rep says it hasn't officially been opened yet, that it's just in "approved status" and he can withdraw the app. So I had him do that.

I'm not overly confident that the rep knew what he was talking about or that the genie can be put back in the bottle at this point, but figured it was worth a try seeing as how only 2 hours had passed since online approval. I've no plans on apping for anything in the next few months, but would like to keep my FICO as high as possible due to several new accounts opened recently. I want to avoid any possible AA and improve my chances for upcoming CLIs in the next few months. Any opinions on whether this will actually report on CRs or not?

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Just FYI, most checking overdrafts count as a revolving account and not an installment. So they act like credit cards for reporting purposes. They will report as line of credit or checking credit most often for the CRAs.