Navy Federal rules · Credit connector

Navy Federal rules

Navy Federal Credit Union (NFCU) is the largest credit union in the nation and is known as "The House of High Limits." It is highly regarded for its ability to help individuals build credit. In this lesson, we will learn how to become a member of NFCU, even if you are not affiliated with the military or have any relatives in the military.

NFCU has certain rules that should be followed when applying for credit cards or credit limit increases. The 91/3 rule suggests waiting at least 91 days and ensuring that 3 billing cycles have closed before attempting any other credit-related activities at NFCU. This rule emphasizes the importance of allowing sufficient time for billing cycles to complete.

There is a belief that applying for credit cards during late-night hours when the NFCU credit underwriting office is closed may increase the chances of instant approvals and higher credit limits. However, the significance of the time of day is debated, and it is generally believed that credit approvals are primarily based on factors such as a solid credit report, verifiable personal identification information, and a good relationship with NFCU.

NFCU offers various credit products with high limits and no documentation requirements. The Navy Federal Flagship Credit Card has a limit of up to $80,000 without requiring extensive documentation. Other cards, like Cash Rewards, have maximum limits of $50,000. It is recommended to stick to Visa/Mastercard network versions of the cards and avoid Amex network cards. NFCU also provides personal loans up to $50,000 with no documentation required, home improvement loans up to $50,000 without verifying home ownership, and auto loans up to $100,000 with excellent rates.

NFCU offers credit builder products, such as the "Pledge Loan," which is a savings-secured loan that helps generate a positive installment account on your credit profile. This loan does not require a credit check and can be opened even with bad or no credit. Additionally, NFCU offers a secured credit card that helps build credit and can graduate to higher limits and better cards, such as the Flagship, after holding the Cash Rewards card for a year.

For data mining purposes, it is recommended to have a Flagship Checking account and maintain a balance in a savings account. Opening Pledge Loans and having an OOPS Overdraft Protection Checking Line of Credit (after 91 days of membership) can also be beneficial. Direct deposit is not necessarily linked to employment but should show consistent deposits. Business products, such as a business credit card and loans, are also available.

Regarding debts and collections, NFCU does not sell debt to collections and will keep the debt until it is paid. While they may not permanently blacklist individuals, it is important to pay any debts back in full. To re-open an account, it is advisable to visit a branch.

NFCU offers cash advances with no fees, allowing cardholders to withdraw up to 30% of their credit card limits into their checking accounts. Balance transfers and debit ATM fees are also credited back to the account at the end of the month.

To determine when to request credit from NFCU, the timing can vary based on factors such as the amount of money deposited when becoming a member, the individual's credit profile, and their level of involvement with NFCU to boost their internal score. For those new to NFCU and credit, it is suggested to wait 1-3 months before applying for the NFCU Secured Card. The prequalification tool should be used to check eligibility.

An example of a successful NFCU experience involved opening a checking and savings account, depositing $6,000 into the checking account, and taking out a Pledge Loan with that amount. After waiting for 31 days, the individual applied for the Navy Federal Cash Rewards credit card and received an instant approval for $25,000. The applicant had a credit score in the low 710s, a good credit mix, an average credit history of 5+ years, and reported an income of $180,000.

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