PLOC question

[Nelsoul]

I just received a $16k personal loan from American Express. I want to see how I can leverage that money to get a personal line the credit.

I recently joined Penfed ( from reports here on good SL) was planning on depositing 8K and then apply for a personal line of credit (which I was denied 2 months ago before I was a member). I do need some funds soon to move a business location,  planning to use the PLOC for that purpose. I also plan on letting the Amex PL sit there on auto pay, then in 1 year pay it off so I can have a paid in full installment loan on my report.

I'd like to know does Penfed ( or other CUs/banks) take into consideration the funds sitting in their accounts when you apply for PLOC or is it more profile / relationship driven ?

I am a NFCU member ( 1 year) but the 3k starting limit cancels them out. 

Also any recommendations on a CU I can get PLOC after a 8K deposit, then double drip on a CC and get the most our of a HP.

[BearsCubsOtters]

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@Nelsoul wrote:

I just received a $16k personal loan from American Express. I want to see how I can leverage that money to get a personal line the credit.

I recently joined Penfed ( from reports here on good SL) was planning on depositing 8K and then apply for a personal line of credit (which I was denied 2 months ago before I was a member). I do need some funds soon to move a business location,  planning to use the PLOC for that purpose. I also plan on letting the Amex PL sit there on auto pay, then in 1 year pay it off so I can have a paid in full installment loan on my report.

I'd like to know does Penfed ( or other CUs/banks) take into consideration the funds sitting in their accounts when you apply for PLOC or is it more profile / relationship driven ?

I am a NFCU member ( 1 year) but the 3k starting limit cancels them out. 

Also any recommendations on a CU I can get PLOC after a 8K deposit, then double drip on a CC and get the most our of a HP.

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I cannot answer definitely so I will have others who may know answer you. Some banks like to see deposits in their accounts (for instance, during the pandemic, Chase was denying Ink applicants for not having balances or high enough balances in Chase checking and I saw a few reports of BofA denying credit cards for the same reason) and others do not. PenFed, in my experience, is a financial institution that does not necessarily care about your deposit balances with them. They will open a share savings with $25 and immediately approve credit cards, or personal loans or refinanced car loans etc-if-your credit and income warrant it.

Instead, I could see having just opened an Amex personal loan and immediately attempting to get a PenFed PLOC as a reason they could use to decline you. It could look like you are desperate for capital by obtaining a $16,000 loan and then a PLOC. But then they may not care. It would be dependant on your overall credit history. 

At any rate, I wanted to chime in and let you know that, from what I have seen and experienced myself, PenFed does not expect large deposit balances to be approved for credit. 

[RSX]

^ agreed

i opened my PenFed acct and had about $200 sitting in it

then i appd for the LOC about 2 months later and got their max amount of $20k

so the $8k sitting in there might help -but also may not be needed

[Nelsoul]

I'm assuming the algorithm would be able to detect the PL long before its reported? I've also be in the garden for 11 months before the PL, perhaps that might help.

I already received a pre approved letter at the lowest rate for Pens CC and I do see under my offers a few products. 

Of course no one knows for sure, thanks for the feedback.

[FinStar]

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@Nelsoul wrote:

I'm assuming the algorithm would be able to detect the PL long before its reported? I've also be in the garden for 11 months before the PL, perhaps that might help.

I already received a pre approved letter at the lowest rate for Pens CC and I do see under my offers a few products. 

Of course no one knows for sure, thanks for the feedback.

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Funds in a PenFed deposit account will not sway UW for the PLOC (as far as increasing the odds of approval). I was able to get approved for PenFed's PLOC without having that much on deposits at the time. Usually, PLOCs are a tad bit harder to obtain than your typical CC in a variety of cases.

What did they cite as the reason on the past denial @Nelsoul?

[Nelsoul]

Thanks guys for the feed back ! 

I can't remember the reason they gave for the denial. 

Happy new year ! 

[creditfan]

for me, I am not only look at their ploc, but also their interest rate to make sure I save more on interest in case I needed.

Do you know that, CC it works the same way as ploc? They are named differently, but they're all revolving. It's best to find CC from banks/CU that offer low interest rate and no CA fee.

By far I can see, NFCU platimun is 7.99% for CA and no fee, and DCU 8.5% and no fee at all. For me, I tend to focus more on saving than which products I should get.

However, there are two CUs I know of they are offering really low % ploc.

BCU as low as 5%

SSFCU as low as 6%

Enjoy your shopping!