Joined PenFed and NFCU - which products use soft pulls?

[Tmk5748]

I've just recently joined both credit unions. My goal is to pad my high utilization and eventually use their balance transfer offers if it makes sense to do that. Credit is about 685 and utilization is about 85%.

 

I don't have any inquiries for a couple years so don't want to do any hard pulls.

 

Which of their products only use soft pulls? I've read conflicting info. 

How should I go about using both these CUs? Since I just joined, I figured I would wait at least a few months to do anything and then I was hoping to apply for any of their products that only require soft pulls, if they have any. 

 

When I'm ready to do a hard pull next year, I was going to apply for CLOC and CC cards from both CUs but not sure if that would mean 4 hard pulls or only 2. And not sure if I should do them the same month. 

 

 

[MarvBear]

Welcome to CB.  Please be patient enough to allow members with knowledge to help you.  Glad you found us.

[steelers1]

First Welcome to Creditboards!

 

Inquiries are a natural part of credit obtaining/building don't be so afraid of them. In the grand scheme of things they really don't matter much.

 

You joining both credit unions may have given you two hard pulls but its really not a big issue. The only time that inquires become a real issue is when you go ape s**t applying for stuff.

 

NFCU is a hard pull for all new credit accounts. You may be able to obtain a credit line increase in the future without a hard pull but just assume its going to be a hard pull.

 

Penfed is also a hard pull for new products. Once your established you may get a pre-approval on your account but that doesn't mean that you wont get a hard pull.

 

I wouldn't apply for any credit products until you get your utilization down significantly. Penfed has become very tight over the past year or so. Your chances in receiving an approval from them with 85% utilization is very slim and if you do your limit would be very skimpy.

Edited August 28, 2018 by steelers1

[shifter]

Forget inqs and app what fits your credit needs and goals. 

 

The goal of credit is to use it, not frame it. Inqs are a natural side effect of using credit. 

[cv91915]

Inquiries are not derogatory.

[Tmk5748]

23 hours ago, steelers1 said:

First Welcome to Creditboards!

 

Inquiries are a natural part of credit obtaining/building don't be so afraid of them. In the grand scheme of things they really don't matter much.

 

You joining both credit unions may have given you two hard pulls but its really not a big issue. The only time that inquires become a real issue is when you go ape s**t applying for stuff.

 

NFCU is a hard pull for all new credit accounts. You may be able to obtain a credit line increase in the future without a hard pull but just assume its going to be a hard pull.

 

Penfed is also a hard pull for new products. Once your established you may get a pre-approval on your account but that doesn't mean that you wont get a hard pull.

 

I wouldn't apply for any credit products until you get your utilization down significantly. Penfed has become very tight over the past year or so. Your chances in receiving an approval from them with 85% utilization is very slim and if you do your limit would be very skimpy.

 

The woman at NFCU said they will do a soft pull for opening the account. For Pen, I applied online and didn't think they would do any pulls for just joining. I will have to check my reports to see. 

What utilization do I need to get approvals with these 2 CUs? I heard NFCU is good for this type of situation but maybe not?

[Tmk5748]

Thank you for the welcomes. 

I read that only 2 inquiries could lower your score by 10-15% for 2 years, which is why I'm nervous about it. My score has been the same for a while but I'm trying to get it up over 700 again.

[Konrad2012]

NFCU is going to hard pull for any credit products. 

 

PenFed has quirks.  They will hard pull for any credit products (AND checking accounts I believe).  Quirk #1 - PenFed will use a single hard pull for 60-90 days. So if you just joined, I would suggest you open a checking account and a credit product now if limiting your pulls is one of your goals.  Quirk #2 - After you've been with PenFed for a while, they will send quarterly pre-approved offers. New credit products, CLIs, car loans etc.

[ivymike]

Penfed places a number of restrictions on new members like ACH limitations and inability to deposit checks via the mobile app and gradually relaxes them until after 6 months they are all gone.  They are also conservative with limits on cards issued to new members for the first 6-12 months.

 

NFCU has far fewer restrictions and offers much more generous limits on their cards to new members. 

 

Both are sensitive to DTI. 

 

If you burn Navy you are dead to them forever. 

 

Where did you read that just having 2 inquiries by itself would depress your scores by that much for that long?  That's BS. 

[cv91915]

20 hours ago, Tmk5748 said:

Thank you for the welcomes. 

I read that only 2 inquiries could lower your score by 10-15% for 2 years, which is why I'm nervous about it. My score has been the same for a while but I'm trying to get it up over 700 again.

Closer to 3 points for a week.

 

I've had perfect 850 scores with recent inquiries.  I have no idea how the fear of inquiries has become so ubiquitous.  They matter somewhere between rarely and never.

[Allkindabroke]

There are no balance transfer fees on the NFCU cash rewards card but interest begins accruing daily from the date the transfer balance hits your account.  I'm not sure if it's a creditworthiness issue but I have never received any reduced rate transfer offers from NFCU and I've had the card for 2 years.  I haven't tried a BT on my Penfed cards. 

On ‎8‎/‎27‎/‎2018 at 5:47 PM, Tmk5748 said:

I've just recently joined both credit unions. My goal is to pad my high utilization and eventually use their balance transfer offers if it makes sense to do that. Credit is about 685 and utilization is about 85%.

 

[Konrad2012]

45 minutes ago, Allkindabroke said:

Interest begins accruing daily from the date the transfer balance hits your account.  I'm not sure if it's a creditworthiness issue but I have never received any reduced rate transfer offers from NFCU and I've had the card for 2 years.  I haven't tried a BT on my Penfed cards. 

 

Definitely is a creditworthiness issue.  Navy and PenFed (and DCU) throw out offers every January like clockwork to all but the biggest deadbeats. 

[Allkindabroke]

31 minutes ago, cv91915 said:

Closer to 3 points for a week.

 

I've had perfect 850 scores with recent inquiries.  I have no idea how the fear of inquiries has become so ubiquitous.  They matter somewhere between rarely and never.

I think that when "your" credit lines run into the several hundred thousand to million dollar range and "you" already have all the cards in your portfolio that you want it's a bit easier to shrug off the effect of inquiries. 

 

That aside, the free TU Fico score I get from SDFCU says "You have too many inquiries on your credit report" as a negative item affecting my score.  I have 3 whole TU inquires reporting. 

 

 

 

[insolent1]

Unless you are angling to get cards with Chase, BofA, and other large banks who use 5/24 or some variation of it, don't obsess over inquiries. 

Pay down your utilization, apply for a NavyFed product first and after you have 18-24 months of good usage that has low utilization, PenFed could well be offering you products.

[Allkindabroke]

4 hours ago, Konrad2012 said:

Definitely is a creditworthiness issue.  Navy and PenFed (and DCU) throw out offers every January like clockwork to all but the biggest deadbeats. 

 

Almost immediately after reading your post, guess what turned up in my inbox?  

 

 

Well aren't you just an unexpected good luck charm!  I didn't even have to wait until January to get an offer. 

 

 

[cv91915]

10 hours ago, Allkindabroke said:

I think that when "your" credit lines run into the several hundred thousand to million dollar range and "you" already have all the cards in your portfolio that you want it's a bit easier to shrug off the effect of inquiries. 

 

That aside, the free TU Fico score I get from SDFCU says "You have too many inquiries on your credit report" as a negative item affecting my score.  I have 3 whole TU inquires reporting. 

 

 

 

Until you get right up to just shy of 850 you will have "negative" score factors listed with a FICO score.  That doesn't mean the factors are significant.

 

My last TU FICO from Barclays was 825, and the score factors tell me I have too much debt on my revolving accounts.  Total utilization was somewhere between 2 and 3%.  

 

Should I be alarmed by this?  

 

What corrective or preventative action would you recommend?

 

What is the practical difference between an 825 FICO and an 835?  Or, for some else, a 701 vs a 711?  Or 560 vs 572?

 

Amount owed on revolving accounts is too high 

Consumers who have high levels of debt on their credit report are more likely to experience repayment challenges over time. If those consumers experience an unexpected change in circumstances, they are less likely to be able to maintain payments on their high debt levels. They are more likely to experience delinquency (falling behind on payments) and charge-off (loan default). This increased risk of late payments is why higher levels of debt impact an individual's FICO Score.

 

 

 

 

[Konrad2012]

7 hours ago, Allkindabroke said:

 

Almost immediately after reading your post, guess what turned up in my inbox?  

 

 

Well aren't you just an unexpected good luck charm!  I didn't even have to wait until January to get an offer. 

 

 

Nice!  I got a similiar email as well.  Unfortunately (well not really because I don't need it) mine came with a 3% upfront fee.  The 0 fee 0% offers are sweet.  And then obviously 0 fee 2.9% offers.  Frontloading the fee like I got is the least desirable. 

[Konrad2012]

1 hour ago, cv91915 said:

What is the practical difference between an 825 FICO and an 835?  Or, for some else, a 701 vs a 711?  Or 560 vs 572?

 

825 vs 835? Nothing. 

 

But in the 600 to low 700 range 10 points could be the difference between approvals and denials, different APRs or lease rates for vehicles, etc. 

[cv91915]

28 minutes ago, Konrad2012 said:

825 vs 835? Nothing. 

 

But in the 600 to low 700 range 10 points could be the difference between approvals and denials, different APRs or lease rates for vehicles, etc. 

For anyone with lower-end scores, any points "lost" from recent inquiries are about the furthest thing from the actual root cause for a denial.  

 

Yet people will point and shriek when the letter says, "too many inquiries," while remaining silent on the repo and the 22 late credit card payments on the same report that cost them the first 200 points that were deducted from their 850 potential.

 

And then they'll warn others about the evils of inquiries.  And then those people will read an internet scare piece about inquiries that quotes John Ulzheimer.  And then we're right back here.

Edited August 30, 2018 by cv91915

[Tmk5748]

As far as Debt To Income ratio, what do you think the minimum is for both these CU's to approve something?

Also, would a personal loan or debt consolidation loan get approve sooner than a new CC?

 

Right now the interest I pay per month comes out to a 13% APR so I don't know if a loan would save me money. A CC balance transfer offer would but from what you're saying, I won't get those offers for a long time. 

What can I do now with these two CUs to help my situation? I don't have any marks on my credit score, just very high utilization. 

Edited September 3, 2018 by Tmk5748

[Tmk5748]

FYI, I spoke to Navy and they said they usually use one hard pull if you apply within 30 days for a CLOC and CC but sometimes they may do 2 hard pulls if they feel it's necessary or if your circumstances have changed. So I guess that's why there's contradicting experiences on that. 

 

He kind of gave me the impression that it's good to wait and establish a relationship before applying for anything. I told him I was planning on not applying for a year and he thought it sounded like a good plan. 

 

I read some old topics in here about Navy. Seems most people here applied for a CLOC and CC right away, even people with BK and other issues. So that's why I was getting itchy to apply for something now.