NFCU Declined Auto Loan with TU FICO = 846

[Allkindabroke]

My 11-year-old car is officially a money pit so I'm going to purchase either a 2022 Honda CRV Hybrid for $25K + tax/title or a 2023 Rav4 for $28K + T/T.  FICO EX 850/EQ 850/TU 846 I did soft pull preapprovals at two credit unions before doing a hard pull application with NFCU applying for $28K over 60 months.   Before anyone gets started, I have enough cash to purchase either car outright but with the economic uncertainty I prefer to stay liquid with a lower payment in case it's needed. 

 

NFCU hard pulled TU Declined for the following reason: Based on an internal review and/or information obtained from your credit report, you don't meet our lending criteria for approval. We'll send a notification by mail to provide you with further explanation and information on the appeals process.

 

I called NFCU and the CSR's only notes are what's written above and that underwriters don't talk to the public.  

 

The inquiry shows on my TU account which was 850 in October and 846 as of today.  There's $14,026 student loan +$1397 credit card out of $287,319 available credit.  The only thing that I can think of is that the cc balance is spread over 6 cards.  There's $0 on my NFCU card.  

My NFCU cash rewards visa was approved and has remained $24K for the last 12 years.  I used to use it more but after 2 CLI denials it gets sock drawer treatment.  Years ago, I was complaining about this CL not budging and that NFCU was known for giving out $50K lines to bad credit and someone here told me maybe $24K is the max exposure for me and now I think they were on to something. 

 

I have preapprovals from USCCU 5.69% 60 months/5.19% 36 months and PenFed 6.04% 60 months/5.89% 36 months.   I'm going to have the dealers check to see if they can beat these rates.  NFCU published rates are 5.59% 60 months 4.99% 36 months that's why I went with the hard pull.    

 

Anyway, that's my Ted Talk. 

[MarvBear]

Thank you for the information.  Will you please post your approvals and declines in the CreditPulls database.

[hdporter]

I think it's safe to day the denial is based on something other than your credit standing/history.

 

Possibly something to do with documented income?  Or perhaps  prior history with the CU?  Anyone's guess.

 

Edited May 2, 2025 by hdporter

[MP80]

Navy Federal rarely denies a member's credit limit increase unless prior records show that the member had a serious negative record when joining Navy Federal, or their current debt-to-income ratio is extremely high, coupled with a lack of open account products related to Navy Federal, resulting in a low internal score.

 

FWIW - Navy Federal does not use ChexSystems but monitors your Early Warning Service System (EWS). If your financial institution is a member of EWS, please note that they have your entire financial history.

[swingline]

Thank you for your service.

 

It could be a lot of things for instance:

- your income (which you didn't mention),

- something to do with the specific cars you want (what they think they're worth versus loan amount),

- or maybe even the types of people they're currently looking to lend to (like BofA wants to lend more to Illegals). 

 

But with what you've told us, my gut says that your available credit is way too high and they're worried you could get the loan and then go on a charging spree. Different underwriters obviously focus on different things. I still only have a $500 limit at Target and from time to time they reduce it to $100!

 

The 60 months/5.19% sounds pretty good; I'd wait a week to see what the Feds do in the meeting and then hit USCCU up and see if they can do better if the rates go down. 

[hdporter]

My fingers are crossed that when @Allkindabroke receives the follow up notification with "further explanation", the info will be shared in a follow-up post.

[shifter]

1 hour ago, hdporter said:

My fingers are crossed that when @Allkindabroke receives the follow up notification with "further explanation", the info will be shared in a follow-up post.

Pretty sure this is a classic we don't want your business line and the letter won't reveal anything of substance. Why this happened is probably due to personal information the OP would rather not share. 

[Flyingifr]

If they won't lend to a member of the 800 club it is safe to assume that because of the financial outlook of the country they really don't want to lend to anyone - except at 30% on a credit card.

[Flyingifr]

On 5/3/2025 at 10:15 AM, Flyingifr said:

If they won't lend to a member of the 800 club it is safe to assume that because of the financial outlook of the country they really don't want to lend to anyone - except at 30% on a credit card.

That dos not always play out. My Crap1 history:

 

Year X - just beginning a credit recovery, FICO scores in the 580-620 range.  I app for and get a Crap1 card with a $500 line. OK, I deserved it. Used it sparingly, never a finance charge. Three to four years later I have FICO's in the high 700's and an Amex card with a limit of $25K-30K. I app for Crap1's Travel card and get the same $500 limit. I asked for a CLI and was given one - a whopping $26 CLI to $526. I sent both cards back to Crap1 with a note saying "You apparently need these cards more than I do."

 

I am totally convinced that it is not the card that is bucketed by Crap1, it is the person.

[Allkindabroke]

On 5/2/2025 at 11:59 AM, swingline said:

Thank you for your service.

 

It could be a lot of things for instance:

- your income (which you didn't mention),

- something to do with the specific cars you want (what they think they're worth versus loan amount),

- or maybe even the types of people they're currently looking to lend to (like BofA wants to lend more to Illegals). 

 

But with what you've told us, my gut says that your available credit is way too high and they're worried you could get the loan and then go on a charging spree. Different underwriters obviously focus on different things. I still only have a $500 limit at Target and from time to time they reduce it to $100!

 

The 60 months/5.19% sounds pretty good; I'd wait a week to see what the Feds do in the meeting and then hit USCCU up and see if they can do better if the rates go down. 

I cannot accept your thanks because I am not a member of the military.  I was one of the masses that got into NFCU through the back door when they acquired a credit union in 2014.

 

There was a bk on my record when I joined (off report 2021) but nothing discharged from NFCU.  
 

I think you’re on to something with the available credit being too high but I will check back in when I receive the letter.

[Allkindabroke]

On 5/2/2025 at 8:07 PM, shifter said:

Pretty sure this is a classic we don't want your business line and the letter won't reveal anything of substance. Why this happened is probably due to personal information the OP would rather not share. 

There’s no hidden conspiracies. I’m really baffled about this denial.  I have no negative history with NFCU.  My credit scores before the inquiry were perfect and I PIF cc’s monthly.

 

Depending on what the denial letter says it may be time for NFCU and I to part ways. The whole point of joining was access to credit products when needed.

[swingline]

On 5/4/2025 at 12:05 PM, Flyingifr said:

That dos not always play out. My Crap1 history:

 

Year X - just beginning a credit recovery, FICO scores in the 580-620 range.  I app for and get a Crap1 card with a $500 line. OK, I deserved it. Used it sparingly, never a finance charge. Three to four years later I have FICO's in the high 700's and an Amex card with a limit of $25K-30K. I app for Crap1's Travel card and get the same $500 limit. I asked for a CLI and was given one - a whopping $26 CLI to $526. I sent both cards back to Crap1 with a note saying "You apparently need these cards more than I do."

 

I am totally convinced that it is not the card that is bucketed by Crap1, it is the person.

 

Even though Crapital One has tried to become more mainstream, including gobbling up ING Direct and now Discover -- being a subprime abusive lender is in their roots and at their core too. 

I've said before I like the deal on no foreign exchange fees and I've gotten more than a few cards from them for the bonuses. But I always keep an eye on them. 

[shifter]

12 hours ago, Allkindabroke said:

There was a bk on my record when I joined (off report 2021) but nothing discharged from NFCU.  

 

I think you’re on to something with the available credit being too high but I will check back in when I receive the letter.

NFCU isn't known for being anti-Egyptian. I suspect the BK may be the reason they stuck you in the red-headed step child bucket. 

[Flyingifr]

18 hours ago, swingline said:

 

Even though Crapital One has tried to become more mainstream, including gobbling up ING Direct and now Discover -- being a subprime abusive lender is in their roots and at their core too. 

I've said before I like the deal on no foreign exchange fees and I've gotten more than a few cards from them for the bonuses. But I always keep an eye on them. 

After 5 years in the sock drawer today they threatened to close the account if I don't start using it. The email I sent them asking when they will give me a usable CL for a Travel Card (over the original $500). It was returned as undeliverable. Goodbye Crap 1. I get no Foreign Exchange Fees from my $35K Amex Delta card.

[swingline]

8 hours ago, Flyingifr said:

After 5 years in the sock drawer today they threatened to close the account if I don't start using it. The email I sent them asking when they will give me a usable CL for a Travel Card (over the original $500). It was returned as undeliverable. Goodbye Crap 1. I get no Foreign Exchange Fees from my $35K Amex Delta card.

 

Credit scores (sometimes) like 8+ years on an active card. Might be worth keeping it around, particularly with more banks unexpectedly shutting down cards.

[hdporter]

Follow-up

On 5/5/2025 at 10:19 AM, Allkindabroke said:

Depending on what the denial letter says it may be time for NFCU and I to part ways. The whole point of joining was access to credit products when needed.

 

Never underestimate the potential impact a rational follow-up reconsideration call might have.

 

On the surface, you appear to have managed your credit intelligently these past few years. 

 

If the padt bk is faulted, admit regret at your past failure, necessitating the bankruptcy filing, but state that you now have safeguards in place to minimize likelihood of any such future filing and that maintaining a sterling credit history is now a keen priority.

 

If income vs debt issues are raised, then be prepared to document how your resources are currently more than sufficient to handle your current debt and daily financial needs, leaving adequate liquidity to take on the new auto loan payments.

 

There are never guarantees, but most credit managers are impressed when someone is prepared to discuss the rationale for a decline in neutral,  factual terms and doesn't resort to defensive posturing.

[MarvBear]

@Allkindabroke  So what is your question to the board?  Or, are you merely expressing your surprise to the board.

 

An 846 FICO® your finance deal would just be a"pack & send" provided you had no disqualifying criteria.

[Allkindabroke]

The denial letter came today.......

 

TU Credit Score they report is 783

 

Ratio of revolving balances to credit limits are too high

Too many accounts with balances

Insufficient time since newest account established

Length of time revolving accounts have been established. 

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

This tells me that pulling all three scores at Experian is worthless because it showed TU = 846 on the day after I put the application in.   

 

I'm still scratching my head at the first denial reason.  The total card use is $1397 with $800 on my Amex gold which doesn't have a limit and the remainder across 5 cards, lowest limit is $15K with total combined credit $287K.   None of the balances are reporting over 1%.

 

I understand the rest of the reasons.   I got a 0% 4 payment Sunbit loan in October 2024 because the car I'm trading in needed $3K in repairs.  This was paid off in January.   Hindsight being 20/20 I should have taken that $3K and put it down on something new.  

 

So the moral of the story for applying to NFCU (for me at least) is pull TU on the TU website, get balances down to zero and wait a year after any new credit. 

 

 

[Allkindabroke]

12 hours ago, MarvBear said:

@Allkindabroke  So what is your question to the board?  Or, are you merely expressing your surprise to the board.

 

An 846 FICO® your finance deal would just be a"pack & send" provided you had no disqualifying criteria.

I was definitely expressing my surprise to the board and my update including the rejection reason had even more surprises.  Before I made this thread, I searched for NFCU Auto and it's been years since anyone posted about their experience so I thought it might be helpful to add mine.  Hope I didn't clog up the Creditboards pipes by contributing.    

[MP80]

3 hours ago, Allkindabroke said:

TU Credit Score they report is 783

I think the TransUnion 783 score is not FICO 8/9, perhaps Navy Federal used TransUnion FICO Auto Score 5 an industry-specific FICO score, meaning it's designed for auto lenders.

 

It's one of several FICO Auto Score versions, each produced by different credit bureaus. TransUnion provides the Auto Score 5, while Experian provides Auto Score 2 and Equifax provides Auto Score 4. FICO Auto Scores use the same data as base FICO scores, but with different weighting, so your base FICO score differs from your FICO Auto Score. 

[hdporter]

So, first, as noted there are models other than TU Fico 8 that lenders use.  if you notification letter doesn't state what specific score model was used, call and ask for your own edification.

 

Second, the reasons stated appear to be an explanation of what factors prevented you from scoring higher.  That's nice, but tells you nothing about why they denied you.

 

Frankly, your score is high enough that you would be approved for most any credit ptoduct on the basis of that score.  so, it's now safe to assume that you were denied for other reasons.

 

From what you report, NFCU declined to include in the letter why you were actually declined.  it's worth calling to ask ro speak with  credit underwriter and have a conversation.

 

I 'm wikking ri bermt that you might engage un sprucing your credit score, such that it was now well into the 800's, yet if you reapply, you'll most likely still be declined.

 

 

[shifter]

On 5/10/2025 at 4:28 AM, Allkindabroke said:

So the moral of the story for applying to NFCU (for me at least) is pull TU on the TU website, get balances down to zero and wait a year after any new credit. 

Those reasons are generated by FICO for why your score isn't higher. They likely have little to no relevance as to why you were actually declined. 783 is plenty high of a score to get approved for basically any credit product. The reasons for a decline would be other underwriting criteria separate from the FICO score. You'll likely never find out but you could certainly secure message their credit team on their website and ask them for more info. I've actually gotten some pretty useful responses from NFCU via secure message. 

[Allkindabroke]

Thanks everyone for the explanations of the other credit models.  All input is appreciated!  It does seem like 780 should have been high enough for an approval but NFCU had other plans.

 

I ended up purchasing a 2024 Corolla Cross for $29K at 5.44% for 60 months Toyota Financing.  With trade in and down payment the amount financed is $19K.

I’m going to check today if either of the pre approval’s will offer a lower rate.  

[Flyingifr]

On 5/10/2025 at 4:28 AM, Allkindabroke said:

The denial letter came today.......

 

TU Credit Score they report is 783

 

Ratio of revolving balances to credit limits are too high

Too many accounts with balances

Insufficient time since newest account established

Length of time revolving accounts have been established. 

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

This tells me that pulling all three scores at Experian is worthless because it showed TU = 846 on the day after I put the application in.   

 

I'm still scratching my head at the first denial reason.  The total card use is $1397 with $800 on my Amex gold which doesn't have a limit and the remainder across 5 cards, lowest limit is $15K with total combined credit $287K.   None of the balances are reporting over 1%.

 

I understand the rest of the reasons.   I got a 0% 4 payment Sunbit loan in October 2024 because the car I'm trading in needed $3K in repairs.  This was paid off in January.   Hindsight being 20/20 I should have taken that $3K and put it down on something new.  

 

So the moral of the story for applying to NFCU (for me at least) is pull TU on the TU website, get balances down to zero and wait a year after any new credit. 

 

 

Look, they always come up with at least 3 reasons to decline any offer. It is often the case that the reasons given make absolutely no sense. I have been declined in the past for the following reasons with the facts after the reason:

 

One declined me because I had "too many recent inquiries" - of which I had ONE - Theirs!!!

 

Another declined me because I had too much outstanding revolving debt (it was less than $500 at the time with total revolving lines of  over $80,000.

 

That same rejection letter claimed no enough revolving credit in use!!!!!!

 

Another cl;aimed I had "bad prior experience with installment debt" - first of all, I had NO prior experience with them. My father did (different first name) twenty five years prior.

 

Finally.... It took me two decades to get American Express to approve me because when I was twelve my father took out a cared in my name and didn't pay them. It took them two decades to decide that they and I were both very early victims of identity theft.

 

Be thankful you didn't get reasons like

 

The high tide in the Bay of Fundy wasn't high enough last night

 

Our Credit Manager's wife ran off with the Vice President of Consumer Lending

 

A dog pooped in the lobby of our corporate headquarters, the the credit manager stepped in it.

 

(and finally, another one I got when I applied for a mortgage in the 1980's - "There is a bank closer to the subject property than us, so we will not lend against that house."

 

Bottom Line - count your blessings they said "No" - because you would find out they are morons when you most need someone in that company with some intelligence.

[swingline]

20 hours ago, Flyingifr said:

Look, they always come up with at least 3 reasons to decline any offer. It is often the case that the reasons given make absolutely no sense. I have been declined in the past for the following reasons with the facts after the reason:

 

One declined me because I had "too many recent inquiries" - of which I had ONE - Theirs!!!

 

Another declined me because I had too much outstanding revolving debt (it was less than $500 at the time with total revolving lines of  over $80,000.

 

That same rejection letter claimed no enough revolving credit in use!!!!!!

 

Another cl;aimed I had "bad prior experience with installment debt" - first of all, I had NO prior experience with them. My father did (different first name) twenty five years prior.

 

Finally.... It took me two decades to get American Express to approve me because when I was twelve my father took out a cared in my name and didn't pay them. It took them two decades to decide that they and I were both very early victims of identity theft.

 

Be thankful you didn't get reasons like

 

The high tide in the Bay of Fundy wasn't high enough last night

 

Our Credit Manager's wife ran off with the Vice President of Consumer Lending

 

A dog pooped in the lobby of our corporate headquarters, the the credit manager stepped in it.

 

(and finally, another one I got when I applied for a mortgage in the 1980's - "There is a bank closer to the subject property than us, so we will not lend against that house."

 

Bottom Line - count your blessings they said "No" - because you would find out they are morons when you most need someone in that company with some intelligence.

 

At least those are amusing. But just picking random (and sometimes conflicting reasons is not)!

 

I remember back in the day eBay used to allow people to withdraw auction bids if they had "valid" reasons and would ask a user to type in the reason. Deadbeats who were messing around never had good reasons and when asked to type one in, they often put, "changed mind"  or something else invalid. eBay got tired of fielding complaints about this so they changed it so a Deadbeat had to choose one of a handful of "valid" reasons from a dropdown box when they canceled.

 

And just like that, 100% of the bid cancelations were now for valid reasons!