PenFed check in mail: sign of possible credit card approval in the near future?

[Dirge]

Hi all; I have a question that I hope maybe someone might have some info on. 

I joined PenFed in November 2018 for the free checking account (after my former free checking account was bought by another bank, I was paying $8.99 per month) and possible future car loan since my car is a 2002 Hyundai and I'm sure it's on its last legs. 

I joined with a 691 Fico 9 and, surprise surprise, they did not approve me for a credit card. Credit score is still about the same. 

This week I got a letter in the mail with a check for up to a $25k loan, 14.99 APR. I don't need it or want it, and I see from reading here that not accepting it might result in a check with a lower APR later. 

I'm wondering if anyone thinks that getting this check might be an indication that they might give me a credit card later? I would hold off on applying for a Discover IT card, which I'm also getting snail mail and online preapprovals for, if I thought I might get a PenFed card within 6 months or so. Although my one Cap1 card has no balance now and usually has no balance, so maybe I shouldn't be chasing the lower PenFed interest rate. 

Also, I was going to apply for a share loan last month on my savings account, except that I was wrong about the amount I had in savings and it's only in this last month that I've got up to $705 ($100 transfers most months, plus my initial $5). I could borrow the $700 for at least a year on a share loan. Does anyone have an idea whether borrowing with the check would show up differently on my credit report than borrowing against my savings account? The interest on the savings account loan would of course be cheaper since it would be guaranteed. I just don't know if they show up differently on credit reports. The thing that I always get as a downgrade (besides my 2012 Ch7 for medical debt) is no installment loan, since my 2002 car was paid off in 2007. That's why I'm thinking of taking a loan for a year or so. 

Thanks, as always, for any ideas. 

Thanks as always for any ideas. 

[tcbofade]

Either loan will appear as an installment loan on your credit report.  No difference.

Hard to say about the credit card.  In January, they approved me for $500.    In September, they approved me for $20k.  

[Shooting-For-800]

I got those checks and was declined for cli on my $15k card.

I still get those checks.

You just never know PenFed.

[FinStar]

OP, unfortunately any checks you may receive are not correlated or indicative of a CC approval. If your profile is strong and can support a CC application, you can certainly try or you can wait until your overall profile is more optimal.

Also, even if you do not accept the current check offer, there's no guarantee that one with a lower APR may generate. It's all YEMV with PenFed.

[AverageJoesCredit]

In my view, and this is just me, if you are getting 25k checks sent to you, that means you hsve really good income and Penfed tends to like people with high income. I think its a good sign for you though when they would approve you a cc might take time. As said they are YMMV but alot of us dont even get loan offers so take it as a positive sign

[SouthJamaica]

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@Dirge wrote:

Hi all; I have a question that I hope maybe someone might have some info on. 

I joined PenFed in November 2018 for the free checking account (after my former free checking account was bought by another bank, I was paying $8.99 per month) and possible future car loan since my car is a 2002 Hyundai and I'm sure it's on its last legs. 

I joined with a 691 Fico 9 and, surprise surprise, they did not approve me for a credit card. Credit score is still about the same. 

This week I got a letter in the mail with a check for up to a $25k loan, 14.99 APR. I don't need it or want it, and I see from reading here that not accepting it might result in a check with a lower APR later. 

I'm wondering if anyone thinks that getting this check might be an indication that they might give me a credit card later? I would hold off on applying for a Discover IT card, which I'm also getting snail mail and online preapprovals for, if I thought I might get a PenFed card within 6 months or so. Although my one Cap1 card has no balance now and usually has no balance, so maybe I shouldn't be chasing the lower PenFed interest rate. 

Also, I was going to apply for a share loan last month on my savings account, except that I was wrong about the amount I had in savings and it's only in this last month that I've got up to $705 ($100 transfers most months, plus my initial $5). I could borrow the $700 for at least a year on a share loan. Does anyone have an idea whether borrowing with the check would show up differently on my credit report than borrowing against my savings account? The interest on the savings account loan would of course be cheaper since it would be guaranteed. I just don't know if they show up differently on credit reports. The thing that I always get as a downgrade (besides my 2012 Ch7 for medical debt) is no installment loan, since my 2002 car was paid off in 2007. That's why I'm thinking of taking a loan for a year or so. 

Thanks, as always, for any ideas. 

Thanks as always for any ideas. 

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Don't read too much into it. Credit unions -- including PenFed -- are constantly barraging me with preapproved loan offers, but I don't see them rushing to increase my credit card credit limits.

[Dirge]

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@tcbofade wrote:

Either loan will appear as an installment loan on your credit report.  No difference.

Hard to say about the credit card.  In January, they approved me for $500.    In September, they approved me for $20k.  

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Oh my stars!

[Dirge]

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@Shooting-For-800 wrote:

I got those checks and was declined for cli on my $15k card.

I still get those checks.

You just never know PenFed.

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Okay, that's the impression I've gotten from this site. Thanks. 

[Dirge]

Thanks everyone! I don't need the check, so I'll just go ahead with my plan to get a small shares loan instead. And wait for the magical far-off day when PenFed greets me with something other than the Turbo Tax box! 

[Dirge]

I got another check in the mail today, and the interest rate is HIGHER -- 17.99%! I anticipate that the next time they send me one, they're going to say that I owe *them* money!