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2nd PenFed Preapproval For Personal Loan in 9 Months

Established Contributor

2nd PenFed Preapproval For Personal Loan in 9 Months

I have 12 CCs so apparently everyone wants to offer me a personal loan rather than a credit card.  Citibank just sent me an offer for a loan two days ago.

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Message 1 of 9
8 REPLIES
Senior Contributor

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months

I received one today as well. It's my second one also. Up to $25k at 12% or something along those lines. I noticed it also gives you choices up to 60 months. They sure knock you in the head over those 60 months.😮
You pay them nearly $10k for that loan...insane!
Nevertheless, nice to get these offers regardless.
FICO 8 Scores EQ=776 TU=783 EX=777 (INQ) EQ=12 TU=11 EX=11
TCL=$600K+ / AAOA= 2.9 yrs / Oldest account = 10.9 yrs
Message 2 of 9
Valued Contributor

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months

I have 23 credit cards and I got the Penfed offer for the second time in a short time as well. I don't know who would go for this offer other than people who don't intend to pay them back.  12.9 percent interest?  Why would anyone do that with the constant zero percent for 12 months or 18 months offers out there?

BOA Premium Rewards, AMEX BCE, AMEX PRG, AMEX Ameriprise Platinum, AMEX SPG, CITI AADvantage Platinum, Chase Hyatt, Chase Southwest Premier, Chase Southwest Plus, Chase Marriott Business, Barclay Arrival +, Barclay AAdvantage Red Aviator, Barclay Aviator Business, USAA Prefered Cash Rewards, Citi Thank You Premier, JCrew, Pottery Barn, Express, NFCU Go Rewards.

Former Cards: Lendup L Card, Bank of America Cash Rewards, Capital One Quicksilver
Message 3 of 9
Established Contributor

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months

My APR offer is only 9.99% but it's still nearly $7,000 of interest on a $25,000 loan for 5 years.

 

I'm not so sure anyone who would take a deal like this is qualified to be a member of a highly regarded credit union.  People who make decisions like this generally have way lower credit scores because they don't understand numbers.

 

It does feel good to have banks fighting for your business though.

Message 4 of 9
Regular Contributor

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months

One thing that these things could be useful for would be to get an installment loan on your CR. Let's say you have $25K lying around, you can take them up on that offer, pay off most of the loan right away and stretch the rest over the term of the loan (if the terms allow). That way you get the score boost from an installment loan (assuming you don't already have one) without HP. Not bad now that Alliant route is shut down. 

Message 5 of 9
Established Contributor

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months

I just found a picture of my first offer.  Maybe I should have clarified I have been a member of PenFed for 9 months.

 

First loan offer must have came back in October.

 

1st PenFed offer.jpg

Message 6 of 9
Valued Member

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months


@CreditContractorwrote:

 

I'm not so sure anyone who would take a deal like this is qualified to be a member of a highly regarded credit union.

 


I am considering it only to help pay for a house to flip that is in Foreclosuer for around $60k. I figure I could borrow it for 3-6 months, that is $650-1,000 over the period. I would pay if it helps me get to the $60k to buy the home and make $30,000.

Message 7 of 9
Frequent Contributor

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months

I’ve never understood the reason for these offers because no one seems to use them
Message 8 of 9
Valued Contributor

Re: 2nd PenFed Preapproval For Personal Loan in 9 Months

I received this offer a few days ago. Up to $25,000 at 12.99%. I tossed it aside as junk mail then I received an email reminder from them last night. That gave me an incentive to take a better look at it.  As mentioned,  the rates are to high. I'm currently taking advantage of two 0% offers.  I can move those over to another card if they aren't paid off by the end date. Pay a small fee then continue with 0%. 

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $15,000 / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $6500 / Barclay Apple Rewards - $5400
Merrick - $2400 - Total - $131,300

EQ - 745 / TU - 741 / EX - 742
Message 9 of 9