NFCU advice

[Anonymous]

I'm waiting for a couple updates on my report and then plan to pull my scores. I'm pretty confident my FICO 9 will be my highest score. My best estimate is anywhere from 650-680. I know that's a big span but a lot has happened since my last pull.  
I joined NFCU in Nov '19 and got their secured card in Dec '19. It's in good standing although new. The following is what I'm hoping to do...

1) Get an auto secured loan with NFCU. By this I mean use a paid off vehicle to get a loan. I've spoken to them and they do offer such but my question is will I be approved?

2) Is it possible to get an unsecured card with them before secured card graduates? My score has improved probably 50 points since then. If it is possible, are my estimated scores high enough and which card should I app for? 
I realize no one can give me completely accurate info based on all the variables but I appreciate any input.

[satio]

I can share my personal experience with NFCU.

I took care of (3) COs bringing them to 0 balance. Also cleared collections. Brought all active accounts to 0 balance.

I had one single active CC account with USAA I have had for a very long time. (I will exclude my rant about how Discover had closed an active account earlier in 2019).

So its August 2019 and I wanted to initiate a relationship with NFCU. I opened Check and Savings Accounts with $100 each. I dumped cash into the Savings. My FICO 8s were sitting in the 660s.

September I took out a 5 year SSL using 3k worth of the savings (as I needed/wanted an active installment loan for the credit mix as well as added bonus of positive payment history reporting). Paid that down to < 8.9% (Left about a $250 balance). That pushed the next payment due out till Feb 2024. I make monthly payment of $1 a month for the ongoing payment history. Of course,  ~2750 frees back up into my savings account. This reported and my FICO 8s were sitting in the 670s.

October I app'd for a Cash Rewards, approved with lowest advertised APR at the time and 25k CL. (They used TU for the HP).

I continue to make regular deposits into that savings on an ongoing basis as another place to stash cash I want to remain liquid.

Depending on the value and age of the vehicle, I would think it probable that they would give you a loan against it.

I don't have first hand experience with how quickly their secured cards unsecure but I have read stories of others that indicated they were in fact with getting an unsecured card from them before their secured account was freed up.

You may just need a little time to let your accounts age there. Maybe pursue the auto loan first and let that ride for 6 months.

Unless there is some pressing need to open a second CC account, I believe if you wait you will be pleased with the results of the starting CL they give you with the second account.

[Anonymous]

Thanks so much. One reason for thinking of trying for an unsecured was that I am going out of the country next month. My secured is $200. I considered (and I'm thinking it's best), apping for the auto loan, if approved taking a little of that and try to up my secured limit. Then, hold off on trying for the unsecured card. Thoughts?

[Anonymous]

One more question @satio....you mentioned you took all your charge offs to 0 balance. How did that impact your FICO 9? I too, have paid all my collections (last should be deleted soon due to PFD) and all my charge offs. I can't find much data about PIF charge offs and FICO 9.

[satio]

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@Anonymous wrote:

One more question @satio....you mentioned you took all your charge offs to 0 balance. How did that impact your FICO 9? I too, have paid all my collections (last should be deleted soon due to PFD) and all my charge offs. I can't find much data about PIF charge offs and FICO 9.

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Here's couple months of data points once all CO accounts were showing 0 balance, Paid, Settled for Less and I had no more collections.

I had a single active CC account with USAA at this time with 0 or less than 100 balance against a 2400 CL.

	10/1/2019
	EQ	TU	EX
FICO8	659	667	666
FICO9	703	706	692

	11/1/2019
	EQ	TU	EX
FICO8	677	680	682
SSL	+18	+13	+16
FICO9	730	736	708

I have kept pretty detailed records and I am fairly certain the bump from October to November was almost entirely a function of adding the SSL which is why these figures are marked this way.

I understand traveling out of the country as I am overseas at least twice per annum so a $200 CL is ruff to manage in that case. I would discuss with NFCU if you are able to boost your CL by additional deposit as you are planning whether those funds come from a auto loan or otherwise.

[Anonymous]

I currently have their secured card and I just got their cash rewards card with a 10k CL in the mail yesterday. My scores are around 600. NFCU tends to weigh you performance as a customer of theirs heavily. I've been with them since apr 2019 for what that is worth. I couldn't tell you about the car loan, but I suspect you will probably be fine. Though, I would suggest that you get the credit card first and pay that responsibly for a few months if you can.