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Hi,
I'm at a lost. My NFCU cash rewards card CL $3100 I had for 4 years expired on 8/31 and they decided not to reissue a new card and close my account. My checking and savings is with NFCU and I have a secured $500 NRewards card with them. I've been banking with them since 2013. I have another local CU i use for checking and savings but no CC's or loans.
I've been working in my current role since July and increased my income from 45k-85k annually. So I am in the process of paying down debt and adjusting to additional income I have. I'm also currently in school working to complete my degree. I have a few baddies but not much and my payments on time and UTIL could improve and come down a bit. With the new income I don't have to penny pinch as much.
I plan on paying off my few baddies and trying to do a few goodwill letters to see if that could help bring up my score and DTI.
My question is where do I go from here, should I apply for another secured card temporarily and work on building my UTIL and OTP. Try to get a personal loan? My end goal is to bring my CS to a 750 and get approved for a AMEX. I would like to also purchase a house but that's in 3-4 yr time frame. Main goal is to pay down anything I can and build up my CS as soon as I can.
Thanks!!
Income $85k- Net Monthly Income- $5,670.10
Checking Acct balance- $600
Savings- $2,000
401k- rebuilding it $2,000 my company matches up to 6% once I hit 1 year of employment
Current scores
FICO 8 Bankcard
TU: 570
EXP: 603
EQ: 555
FICO 9 Bankcard
TU:466
EXP:532
EQ:485
DTI:
Rent-$1200
Student Loans: $70,570.54 (yes I know SL is ridiculous and I don't have my Bachelors yet, foolish lending when I was fresh out of high school) SL in deferrment for school
Car Loan: $9,349- I pay $409 a month (I was approved in 17 with subpar CS)
Internet- $60 a month
Phone- 2 lines $130
Car Insurance- $250
Average Age of accounts: 5 yrs 5 months
Oldest Acct: 12 yrs
Baddies:
Charter (collections 5/20 Southwest Credit)- $360
Capital One Closed account sent to MidLand Collections 1/21- $1,078
Not in collections yet but I owe a balance on the closed 9/21 NFCU cash rewards: $2,974
Medical Bills: $681
2 Inquires set to fall off 10/31/21
Do NOT let that Navy balance go to collections.
I'm sorry that they closed your account, but that does not necessarily equate to a demand for payment in full. Keep making monthly payments, they'll keep the account and keep billing you.
What to do next? If your income to expense ratio is now in the positive, (more dollars coming in than going out) I would suggest using your savings to pay off the three baddies. (pay for delete?)
If your income to expense ratio is still not positive, I would call them and make whatever payment arrangements they can offer.
Getting the baddies off of your credit report will help your score.
A closed account with NFCU is NOT a negative on your credit report. Keep making at least the minimum payment so that it doesn't BECOME a negative.
Good luck!
Thank you that's super helpful. I know I maintained a higher balance on the NFCU cash rewards when I had the card but I was working on pay it down and keeping it down. Its good to hear that I can continue to pay the balance and not allow it to go to collections. I'll make sure to pay it as usual and not allow it to go to collections. Thank you!
@getontrack2021 wrote:Hi,
I'm at a lost. My NFCU cash rewards card CL $3100 I had for 4 years expired on 8/31 and they decided not to reissue a new card and close my account. My checking and savings is with NFCU and I have a secured $500 NRewards card with them. I've been banking with them since 2013. I have another local CU i use for checking and savings but no CC's or loans.
Did you ask WHY they chose to close it? I would. I'm assuming you had a good history with them, so I'm really curious as to why they closed it. Did they send an explanation?
I didn't even know they closed it until I noticed my card was expired when I went to use it. I called to request a new one and spoke with a rep and that's when they told me it was closed and I was mailed a letter with the reason why it won't be reissued. I haven't received the letter yet and I even called back a second time to spoke with a different rep and asked for a reconsideration and they said they would not be able to reconsider since the acct is now closed. I would need to reapply for another card with them and see if I can be approved. No further reasoning was given to me via phone, so i'm just waiting for the letter to arrive so I can have a better idea of why. As i mentioned previously, I paid this card on time but I did maintain a high UTIL with it. That's the only reason I can think of.
Okay, well let us know what the letter says once you receive it. I'm very curious! Most banks LIKE seeing high utilization, since that generally benefits them (via interest, especially with high APRs), so I personally don't see why that would be their reason for closing it. Let us know!