What gives between Credit Union's Lending Departments...

[HONDACBRRR]

Hi All,

 

Long time lurker, first time poster. I'm not nearly as experienced as most on here but just have a general observation and am trying to determine the age old question of "why"

 

My wife and I both have (about to close them) accounts with DCU for almost 2 years - with both have what I would consider to be fairly good scores - I'm a 718 FICO with around 9 inquires and my wife is a 754 with far fewer inquiries and low utilization, she does not have any baddies and I have one (a CH 7 that was discharged in 2005) that is only on one bureau. DCU denied us for a joint credit card about 6 months ago- claimed we had sufficient credit and too many inquiries. The real salt in the wounds was that the loan officer even said - "you all wouldn't even qualify for a secured card". Crazy! Thought about refinancing both our vehicles about 3 weeks ago - went through all the motions with DCU and again denied. A reconsideration request was made and it was approved at 12.99% for one vehicle, they would not refi both. Forget that.

 

So we had enough of that and opened a membership with Logix last week - it was like night and day. We opened our membership on the phone and during the process the rep clearly indicated what was going to occur and presented us with offers we couldn't resist - membership approved, interested in a 15K card? - Approved, interested in any refinancing? Both vehicles were approved at their lowest offered rates. Any interest in a personal loan? Sure, approved at 36 months at 8.99%.

 

I don't quite understand how one CU that we've been with for nearly 2 years does not feel we are worth the risk for any sort of credit product while an entirely new CU membership that isn't even a day old felt we were a good risk and offered all those approvals? And as a side note....the refinance process for both vehicles went off without a hitch. We've since decided to begin winding down DCU and moving our funds to Logix. My only criticism would be their iPhone App is a bit lacking and they don't seem to support two separate logins like DCU.

 

Thanks for any comments

 

 

[shifter]

CUs are amateur bunches

[HONDACBRRR]

LOL - definitely would agree on DCU. I just can't wrap my mind around lending standards being literally like night an day between institutions.

[moadikum]

CUs all have different available assets, so some are able to absorb 'riskier' customers. Some are more small-time, and can't take that risk.

[moosetracks]

 

The real salt in the wounds was that the loan officer even said - "you all wouldn't even qualify for a secured card".

 

This was the LO telling you they didnt want your business and your que to tell them what they could do with their CU... Some CUs are amateurs as already stated.

 

 

[gopher]

I'm one of the laziest people on the planet. That said, occasionally someone irritates me enough to get me off my duff and do something. I would send a letter to the head of the CU w/ a cc to every board member explaining why, quoting the loan officer, I will no longer be a member and reminding them I will be happy to not only NOT recommend them, but actively diss them at every opportunity. There is simply no excuse for that behavior by a loan officer that works for the membership and you'd be doing the rest of the members a service if you got the jerk disciplined or fired.

[Herloss]

I have dealt with credit unions for years. They gave me my start with credit and have always been much more personal as opposed to most banks. However, I have had to deal with the occaisional loan officer that simply does not want or like your credit request.

 

Some tiny tiny local small credit unions have been very generous when I expected the opposite. Same with huge CU's that were tight, jerks even. By and large I still prefer credit unions but haven't used them actively in some years. I would advise anyone to expect a hit and miss attitude with approvals through them. Sometimes the CU's are picky about following their -often strict- lending guidelines.

 

To the OP I am in total agreement to move to the new CU that values your business. If it happened to me and years ago it had - I would write the CU you are leaving a kiss my Gass letter proudly advising them why you left. Either way; congratulations!

[takeshi]

I don't quite understand how one CU that we've been with for nearly 2 years does not feel we are worth the risk for any sort of credit product while an entirely new CU membership that isn't even a day old felt we were a good risk and offered all those approvals?

Time itself doesn't really mean anything and criteria vary with CU's just as with any type of creditor.

[mark1210]

Hi All,

 

Long time lurker, first time poster. I'm not nearly as experienced as most on here but just have a general observation and am trying to determine the age old question of "why"

 

My wife and I both have (about to close them) accounts with DCU for almost 2 years - with both have what I would consider to be fairly good scores - I'm a 718 FICO with around 9 inquires and my wife is a 754 with far fewer inquiries and low utilization, she does not have any baddies and I have one (a CH 7 that was discharged in 2005) that is only on one bureau. DCU denied us for a joint credit card about 6 months ago- claimed we had sufficient credit and too many inquiries. The real salt in the wounds was that the loan officer even said - "you all wouldn't even qualify for a secured card". Crazy! Thought about refinancing both our vehicles about 3 weeks ago - went through all the motions with DCU and again denied. A reconsideration request was made and it was approved at 12.99% for one vehicle, they would not refi both. Forget that.

 

So we had enough of that and opened a membership with Logix last week - it was like night and day. We opened our membership on the phone and during the process the rep clearly indicated what was going to occur and presented us with offers we couldn't resist - membership approved, interested in a 15K card? - Approved, interested in any refinancing? Both vehicles were approved at their lowest offered rates. Any interest in a personal loan? Sure, approved at 36 months at 8.99%.

 

I don't quite understand how one CU that we've been with for nearly 2 years does not feel we are worth the risk for any sort of credit product while an entirely new CU membership that isn't even a day old felt we were a good risk and offered all those approvals? And as a side note....the refinance process for both vehicles went off without a hitch. We've since decided to begin winding down DCU and moving our funds to Logix. My only criticism would be their iPhone App is a bit lacking and they don't seem to support two separate logins like DCU.

 

Thanks for any comments

 

 

 

I'm a bit surprised (especially with those scores) that you would be turned down even for a secured card (not like you want it or should have to get one). I'm just surprised anyone would be turned down for that given your own money is being used as collateral.

 

Clearly they don't want your business so I would move on as well.

 

Sorry to hear that experience tho - I was turned down for one of their CC's for too many inquires and sufficient credit also. I just think they are very very conservative.

[RBinAK]

After reading this board awhile I have no problem with DCU and these actions. Credit Unions are non profits with a business model and plan to make that happen. DCU is looking to add low risk high dollar loans. 2% interest on a 40k car loan with ultra low risk customers is a good model.

 

Why lend any money to post BK people if you don't have to.

[RBinAK]

It's also important to not compare DCU to your local cu. Each has a specific internally set mandate. It would be like getting mad at Taco Bell for not having a cheeseburger.

[javamiester]

It's also important to not compare DCU to your local cu. Each has a specific internally set mandate. It would be like getting mad at Taco Bell for not having a cheeseburger.

 

...or if they did.

[dockworker]

Credit Unions are more concerned with it's customers over profits. They aren't gouging half their entire customer base to squeeze as much profit as possible to satiate and appease their board and Wall Street. As a result they have to be more conservative with their lending as their entire customer base are absorbing some profits into benefits.

 

Think about it from a different perspective though. You know you are financially stable and sound and could absorb the brunt of you and your wife losing employment for whatever reason and will still be able to pay the bills. But your credit union doesn't know that. If this was your money, and say you gave someone 20k credit line, and noticed they have 80k available credit, would you risk giving them more? This is just one person, what if you had tens of thousands of people wanting to do this?

 

People are going to call me crazy for this, but I wouldn't.

[nbipbm]

Credit Unions are more concerned with it's customers over profits. They aren't gouging half their entire customer base to squeeze as much profit as possible to satiate and appease their board and Wall Street. As a result they have to be more conservative with their lending as their entire customer base are absorbing some profits into benefits.

 

Not all credit unions are the same, and neither are banks. I have an account at a credit union that I don't pay attention to and it somehow ended in an overdraft. I found this out about two months later, as they never sent any kind of notice to me. I rang and they said they don't waive overdrafts and I should pay attention more. It shouldn't be hard to guess what I did with the account. I've had the same thing happen at a bank and they will usually waive it for the first time. So in this case, no the credit union wasn't concerned about me and just wanted the money from the fees.

[dockworker]

Yeah I was speaking on general times, always need to shop around and look at the fine print, listing of fees and fines, etc. not judging a book by its cover.

[virtualtreasure]

CUs all have different available assets, so some are able to absorb 'riskier' customers. Some are more small-time, and can't take that risk.

DCU is the largest credit union headquartered in New England as measured by assets. DCU is among the top 25 nationwide

[credithunting]

NAVY FEDERAL CREDIT UNION Assets $55,540,179,149 Member Savings $40,062,724,175 Loans Outstanding $40,124,552,134 Reserves $6,237,459,892 Members 4,688,523

NFCU is the biggest in the us larger than many banks

[Occam]

Hi All,

 

Long time lurker, first time poster. I'm not nearly as experienced as most on here but just have a general observation and am trying to determine the age old question of "why"

 

My wife and I both have (about to close them) accounts with DCU for almost 2 years - with both have what I would consider to be fairly good scores - I'm a 718 FICO with around 9 inquires and my wife is a 754 with far fewer inquiries and low utilization, she does not have any baddies and I have one (a CH 7 that was discharged in 2005) that is only on one bureau. DCU denied us for a joint credit card about 6 months ago- claimed we had sufficient credit and too many inquiries. The real salt in the wounds was that the loan officer even said - "you all wouldn't even qualify for a secured card". Crazy! Thought about refinancing both our vehicles about 3 weeks ago - went through all the motions with DCU and again denied. A reconsideration request was made and it was approved at 12.99% for one vehicle, they would not refi both. Forget that.

 

So we had enough of that and opened a membership with Logix last week - it was like night and day. We opened our membership on the phone and during the process the rep clearly indicated what was going to occur and presented us with offers we couldn't resist - membership approved, interested in a 15K card? - Approved, interested in any refinancing? Both vehicles were approved at their lowest offered rates. Any interest in a personal loan? Sure, approved at 36 months at 8.99%.

 

I don't quite understand how one CU that we've been with for nearly 2 years does not feel we are worth the risk for any sort of credit product while an entirely new CU membership that isn't even a day old felt we were a good risk and offered all those approvals? And as a side note....the refinance process for both vehicles went off without a hitch. We've since decided to begin winding down DCU and moving our funds to Logix. My only criticism would be their iPhone App is a bit lacking and they don't seem to support two separate logins like DCU.

 

Thanks for any comments

 

 

 

Rosefactor.