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SL amount on CC app I should ask for w/ small credit union?

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New Contributor

SL amount on CC app I should ask for w/ small credit union?

CSE Federal Credit Union is a local credit union in the ohio region that I will be applying for a BT CC with in the next six weeks.

 

I've went twice in person and once over the phone in the last six weeks to ask questions about everything they offer, specifically scheduling appointments with one loan officer in particular to develop a rapport. This last time, today, I brought my wife with me.

 

When I joined over a month ago I made sure to do it with high credit utilization just as I was about to start making significant payments.

So I've showed this particular person that I can pay down debt and do it quickly. Talking about my goals and options as I continued to make progress.

 

Now as I'm making some of my last payments to get MY CC utilization to 0% I am coming to a point where I need to know what I should ask for.

 

Basically what I will be doing is absorbing what's left of my wife's CC debt (a bit less than 15k) at a lower interest rate, shifting our debt around to solely me because of my high credit score and my opportunities to get rates significantly lower than what she has.

 

I finally talked numbers and she assured me I'd be able to likely get the 15k SL needed to cover the entire balance.

 

I asked how they determined the spending limit on CCs they issue and I was told 4x your monthly gross income. The first time I asked six weeks ago I asked if OT was counted or not and was told it is! I asked again today, but didn't mention OT and how I'd be working it to inflate my gross income. She told me again 4x my gross monthly income.

 

I intend to work a schedule at work the next 28 days, two full pay periods, to gross 8k in one month. They want your two most recent pay stubs.

 

So hypothetically I could get approved for 32k (I know, haha, yeah right).

 

I could risk it and ask for a SL above 15k and I am seriously considering it.

The sole reason would be to get a BT card and do the transfer of what is left of our debt to that card but have the luxury of not maxing out that card and/or having it reported to the credit bureaus at a utilization of 90% or more.

 

The more I ask for, the closer I'd be to a utilization of 30% or less

 

To give you and idea this is what my utilization would look like if I got 15k SL and that was it.

 

0/500 Cap One Platinum, Primary User
0/1500 Cap One Journey, AU
0/3500 Cap One Platinum, AU
0/7500 Local Bank CC, AU
15000/15000 Local CU CC, Primary User
 
Total: 15000/28000

 

That'd put me at about 53.5% utilization

 

If I ask for the full 32k (I know, I know, haha) that'd actually put me at 33%

But what about 20k, 25k?

 

A lot of you guys have experience with mid sized credit unions, what would you suggest?

 

Am I over reaching, should I settle for 15k?

 

Nothing throws up a red flag quicker than asking for more than you need.

 

Yes, I only really wanna try to mitigate the beating my utilization will take, but how would they know that?

 

It's more important for me to pay down this last of our debt at a single digit interest rate than anything else.

But should I try to save my utilization as much as I can and request a higher SL?

 

Or not risk it for the biscuit and scare this lender and crippling what chances I have for 15k?

 

What are your thoughts on that?

 

Message 1 of 8
7 REPLIES 7
Community Leader
Super Contributor

Re: SL amount on CC app I should ask for w/ small credit union?

If the CU Rep says they typically give 4 x monthly income then I am sure that's what they do.  I wouldn't overthink this.  It's common to ask for a certain amount (perhaps more than you think you'll get) and then they respond by countering with a smaller (but still large) amount.

 

As a matter of fact, when I apply for a new card, I unsually don't even have the option of asking for a certain SL.  They just give me whatever they give me.  Given the tremendously hands-on approach of this CU, maybe its different with them.

 

So since you want 15k, why not ask for 25k, and they will probably just give you that.  Or they might counter with 20k.

 

Regardless, don't worry about it.  Get the new card, and get your debt paid off.

Message 2 of 8
Senior Contributor

Re: SL amount on CC app I should ask for w/ small credit union?

OP, I like how you strategized and planned everything out, and spoke to CSRs too.

My two concerns and they’re not biggies:
(1) that your highest CC limit is $7,500. Lenders, with the exception of NFCU😁 of course, like to see that one has been able to handle larger limits. They don’t want to be the first to give out a high CL.

(2) when CSR quoted 4x gross monthly income, it doesn’t appear that she’s taking DTI into consideration. So, if I make $6K/mo but my debt is $4K/mo ... (I don’t know, it’s something to think about)

Just my 2cents
GOALS: Garden til DEC 2020 and 800 Club

Scores
APR 2019: EX 787, TU 789, EQ 781
JAN 2019: EX 794, TU 783, EQ 801
DEC 2018: EX 777, TU 783, EQ 799

|| AmX ED $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $15.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX Magnate $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 3 of 8
Frequent Contributor

Re: SL amount on CC app I should ask for w/ small credit union?

I agree I would ask for the higher amount and see what they counter and count your stars and blessing that they do this My CU didn't give me an option they said this is what you get!   Haha.     BUT with that being said what if they give you the higher amount that would be awesome!     It never hurts to ask and if they counter with a lower amount you will know then and it may surprise you that they may give a little lower than you settling for a lot lower!

Starting Score: 537
Current Score: 725
Goal Score: 775


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Message 4 of 8
Valued Contributor

Re: SL amount on CC app I should ask for w/ small credit union?

The great golfer Tom Watson -- an agressive putter who would routinely run missed putts 2-3 feet past the cup -- when queried about his strategy said, "One hundred percent of the putts left short don't go in." 

 

Trust Tom. Don't be short. 

Starting Score: (5/24/2018) -- FICO 08 EXP: 643; FICO 08 TU: 642; FICO 08 EQ: 677
Current Score (3/01/2019): FICO 08 EXP: 714; TU: 744; EQ: 710
2019 Goal Score: 800 across the board


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Message 5 of 8
New Contributor

Re: SL amount on CC app I should ask for w/ small credit union?

The hands on approach IS tremendous but I want anyone reading this to know I joined THREE CUs in one day and scheduled appoints, not just walk in impromptu appts, to find the right CSR (not the right CU) that was hands on like I have.

I had the exact same conversation each time. Then followed up with all three the same way.

As I got further down the line I started seeing who was the most responsive and supportive and now I see thats gonna be CSE.

NFCU is an algorithm. One that is unlike our FICO scoring sysyem. Their internal scoring system is unpredictable at times so I can't risk going with them even though I REALLY want to. Their rates and SL amounts are incredible. They're going to be my next line of credit in the future when I'm just playing at raising my score as a hobby, but this is about debt consolidation now so I will take the sure thing for the moment.

The other small local CU started to encourage me to fill out an app online and see what happens when I tried a follow up appointment, basically a less hands on approach. Which I think, from their point of view, is a good way to deal with loaning money. An algorithm, with the amount of AU cards I have, is probably not in my best interests atm.

This one, CSE, has a loan officer who was very extroverted and supportive and is very friendly and totally gets involved with what I'm doing and why.

I think my best shot is with a manual application process, so I made sure to find one that closely resembled that and that's how I found CSE.

Anyone can find a CU like that, just keep showing up until your instincts tell you you've found the right one. Play the field

--

But, before I forget... thanks again. All this sets me at ease and makes me feel so much better about what I'm about to do! Money is scary, it's great to have the ear of folks who have been working on this stuff for so long versus me, just half a year. Your experience is immensely appreciated
Message 6 of 8
Valued Contributor

Re: SL amount on CC app I should ask for w/ small credit union?

Honestly I would get this CU card and then turn around and get a card from NFCU too. You’re going to want to pad that utilization down some more and assuming your DTI is low, it seems quite likely NFCU will like your profile. 

 

Also, $15K isn’t enough for a $15K balance transfer. That will destroy scores (89.9% utilization = maxed out) big time so I would apply for the NFCU Platinum as well and split the BT. 



Scores 1/2019:
Scores 4/2019:

Hover over my cards to see my limits!
Goal: Garden... and garden... and garden.
Message 7 of 8
Super Contributor

Re: SL amount on CC app I should ask for w/ small credit union?

Saeran, I was thinking the same. I'd never put that much on one CC, maxing it out. Spread it around OP.

I'm a member of so many CUs. I have to pull up my Mint app to remind myself of some of them.

You can join as many as you want to.
Doesn't hurt a thing and gives you more options.

I've got BTs on Discover, DCU, Bank of America and Citi running all at the same time.
The easiest to work with is Citi and BofA. Discover is a bit OCD. lol

They've called me three times in a week to asked if it was me that did the BT and emailed me once.😂

I haven't heard a peep out of Citi. They dropped the funds in my bank account in 1 business day and left me alone.

Citi has a feature called Citi Flex. You pick the duration up to 60 months. They deduct the amount from your credit line.

Your rate is fixed and doesn't change for the life of the loan. This is what the page looks like.

 

 

Citi Flex.png

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