• 1 23459
  • Page
  • Text Only
lotusgardener said: studiddy said: Precept said: This is so tempting with high student loans...I know I shouldn't though.
I'm in the same boat. This could potentially save a ton of money, but losing the ability to stop paying when I go back to school would suck ass. Then again, this would get paid off a lot sooner...


Just put your non-staffords on the CC. Interest is going to accrue anyways, so you might as well keep paying whether you're in school or not.


How can one get a CC number associated with a student loan to make this work?

lotusgardener said: studiddy said: Precept said: This is so tempting with high student loans...I know I shouldn't though.
I'm in the same boat. This could potentially save a ton of money, but losing the ability to stop paying when I go back to school would suck ass. Then again, this would get paid off a lot sooner...


Just put your non-staffords on the CC. Interest is going to accrue anyways, so you might as well keep paying whether you're in school or not.


Good point...about half my loans are Stafford (6.75%), but this could still yield substantial savings.

I don't see the minimum payment percentage on Penfed's site anywhere. Google search came up with 2%, though that was just listed on discussion sites... does anyone have confirmation on this?

I am thinking about doing this with our 2nd Mortgage through PenFed (equity loan) which is at 7.49% and we pay about $485/month. This would definitely save on the interest per year, although, we wouldn't get the tax savings but I think the 2.99% BT would definitely make up more than that, don't you guys think? Wonder if PenFed would allow me to pay off my loan with their CC. I may have to pay it off with another card and then do a balance transfer from that card most likely right?

I think the minimum payment is 2% if I recall, but I'm not 100%.

How liberal have they been with credit limits? I have a lot of non-card debt at higher interest rates that I'd move over...

They are somewhat conservative with their limits but more importantly they require excellent credit and very high FICO scores. The have great rates for the best and most qualified, its their niche sand it is why they can offer lower loan rates.

sethdallob said: How liberal have they been with credit limits? I have a lot of non-card debt at higher interest rates that I'd move over...

They are quite conservative with initial credit lines. I had to fax my last 2 years tax returns and a copy of every lease for my rental properties and they gave me $15k (FAKO was 750+). I've read where some other posters state that after 1 year they were bumped up to $50k but I've only had the card for a couple of months so I can't confirm this.

Can one get more than one credit card from them? I've got one, but use it for my gas and any other categories that are not covered at higher CashBack rates.

I applied 2 years ago, Got 45K credit line. No problem then and still have the 45K credit line.
Watch out though, I think if you request, above 10K they might need to have you call in or if you get too close to your CL you have to call in, one of the two.

Have to say, 2.9 is a good deal, especially if you have 45K to play with.

You can definitely get more than one credit card - and they will reallocate easily. I had 2 7500 dollar cards, and ended up keeping the gas card at 1k (don't ever get more than 1k in gas a month anyways) and making the other card 14k to get ready for this.

If you have ANY debt more than 3% - and you have the funds - you should definitely roll it over to this - pay minimum payments and leverage. You can probably milk 6-7 years out of this. Best deal in banking today. And you know Penfed won't pull a "Chase" on you.

bbr said: sethdallob said: How liberal have they been with credit limits? I have a lot of non-card debt at higher interest rates that I'd move over...

They are quite conservative with initial credit lines. I had to fax my last 2 years tax returns and a copy of every lease for my rental properties and they gave me $15k (FAKO was 750+). I've read where some other posters state that after 1 year they were bumped up to $50k but I've only had the card for a couple of months so I can't confirm this.


Out of the blue they offered me 50k on a pre-approved line. That was earlier this year, so it's fresh data. myFICO is 682, my DTI is through the roof right now, they required no tax returns, just asked if I had any change in employment or income. I filled out like a 3 line application and was approved. Now my wife doesn't get the offer. Her Fico is pushing 750, all the debt is stacked onto my credit report, she has a very good balance sheet compared to mine. They're still offering to lend me another 50k for a car loan. I'm not going to bite on that one. I can get 10 perfectly usable cars for 50k, and I don't do liens against depreciating assets as a personal rule of dumb.

I wonder if they're going to let me pay off the 6% and take another at 3%. I'll certainly have my eyes open this week.

WalStMonky said: bbr said: sethdallob said: How liberal have they been with credit limits? I have a lot of non-card debt at higher interest rates that I'd move over...

They are quite conservative with initial credit lines. I had to fax my last 2 years tax returns and a copy of every lease for my rental properties and they gave me $15k (FAKO was 750+). I've read where some other posters state that after 1 year they were bumped up to $50k but I've only had the card for a couple of months so I can't confirm this.


Out of the blue they offered me 50k on a pre-approved line. That was earlier this year, so it's fresh data. myFICO is 682, my DTI is through the roof right now, they required no tax returns, just asked if I had any change in employment or income. I filled out like a 3 line application and was approved. Now my wife doesn't get the offer. Her Fico is pushing 750, all the debt is stacked onto my credit report, she has a very good balance sheet compared to mine. They're still offering to lend me another 50k for a car loan. I'm not going to bite on that one. I can get 10 perfectly usable cars for 50k, and I don't do liens against depreciating assets as a personal rule of dumb.

I wonder if they're going to let me pay off the 6% and take another at 3%. I'll certainly have my eyes open this week.


Earlier this year as in January '09?

Do you remember what kind of inquiries you had on your CR at the time?

From what I have read Penfed exclusively pulls EQ.

WalStMonky said: Out of the blue they offered me 50k on a pre-approved line. That was earlier this year, so it's fresh data. myFICO is 682, my DTI is through the roof right now, they required no tax returns, just asked if I had any change in employment or income. I filled out like a 3 line application and was approved. Now my wife doesn't get the offer. Her Fico is pushing 750, all the debt is stacked onto my credit report, she has a very good balance sheet compared to mine. They're still offering to lend me another 50k for a car loan. I'm not going to bite on that one. I can get 10 perfectly usable cars for 50k, and I don't do liens against depreciating assets as a personal rule of dumb.

I wonder if they're going to let me pay off the 6% and take another at 3%. I'll certainly have my eyes open this week.


How long have you had your existing relationship with Penfed? Also, for BT offers, I wonder if having balances out there actually helps. A couple of months ago, I called BOA asking for a CLI to take advantage of a BT offer they sent in the mail. They gave me an increase, but only slightly above all of the outstanding balances showing on my CR (and stated that should be enough to pay off everything). So I guess I would have received a larger increase if I showed more outstanding CC debt. It sort of makes sense in that there would be no new debt, only transferring debt from one account to another. Which I guess is the original purpose of the BT anyway.

I've been with PenFed since at least 2002. Not much of a relationship, $10 in checking and $10 in 2 share savings accounts. Primarily used to receive BofA bill pay funds and little else, though I do take advantage of their free official checks when I need one. All that time issuers were lined up trying to lend massive sums to anyone with a pulse and PenFed didn't offer me a penny. Then the credit crunch comes along and here, have 100k Mr. Simian, just sign here and here.

Yes, earlier this year as in 2009. My first required payment is due on Tuesday though I did get a long, long first cycle due to a request to change the due date. Frankly, I was shocked to receive the offer, particularly since my wife did not.

No balances on CCS on my personal report at the time except transactional accounts as everything has moved to business.

Are there any downsides to Penfed's BT? Other offers I've seen requires you to make purchases (which of course fall under the card's normal interest rate and interest accrues until the lower interest items are paid off), or other crap to meet the requirements each month.

Another reason I think this is a great deal is penfed's lieniency with late payments. They give you a 7 day grace period, no fee. I asked if there was any reason the rate would jump up and they continued to say no on the phone. I guess the rate will go up after being two months late (from what I read in the fine print) to the default rate of 17.99% which isn't too bad.

-g

My friend and I just worked out a nice tactic: You can use this to pay off your mortgage provided u have outstanding AOR balances you can use and that cash liquid in a HYS.

1> BT from penfed to pay off your AOR card balance. Let's say 10k at bank X.
2> Use the 10k of cash, the cash that was sitting in HYS, to pay your mortgage

Rinse and repeat for as many cards as you have.

The positive: it's 3% for life as opposed to 5+% for mortgages and 8+% for small (e.g. 20%) mortgages.
The negative: You lose the outstanding balances and free cash you could use for your next AOR. Considering the yield on HYS and CDs, that's not that bad. AOR isn't lucrative these days.

-Glen

CASH FLOW concern...

assuming $100,000 mortgage, a $650 pmt on a 30 year fixed is a smaller payment than

assuming $100,000 balance, a $2,000 pmt on a 2.99% $100k for life

also keep in mind a 6% mortgage effective cost is 4.32% (assuming 28% tax bracket)

also keep in mind a 5% mortgage effective cost is 3.60% (assuming 28% tax bracket)

WalStMonky said: Out of the blue they offered me 50k on a pre-approved line. That was earlier this year, so it's fresh data. myFICO is 682, my DTI is through the roof right now, they required no tax returns, just asked if I had any change in employment or income. I filled out like a 3 line application and was approved. Now my wife doesn't get the offer. Her Fico is pushing 750, all the debt is stacked onto my credit report, she has a very good balance sheet compared to mine. They're still offering to lend me another 50k for a car loan. I'm not going to bite on that one. I can get 10 perfectly usable cars for 50k, and I don't do liens against depreciating assets as a personal rule of dumb.

I wonder if they're going to let me pay off the 6% and take another at 3%. I'll certainly have my eyes open this week.


$50,000? 2006 called... they want their easy credit back.

Well pick up the GD phone. Life was a lot more fun before the depression started.

jackcrawfish said: CASH FLOW concern...

assuming $100,000 mortgage, a $650 pmt on a 30 year fixed is a smaller payment than

assuming $100,000 balance, a $2,000 pmt on a 2.99% $100k for life

also keep in mind a 6% mortgage effective cost is 4.32% (assuming 28% tax bracket)

also keep in mind a 5% mortgage effective cost is 3.60% (assuming 28% tax bracket)


Could also pay off the 100k in about 6 years vs. 30 years - with break-even being somewhere in the 3 year range. You could also get a 60% LTV HELOC to supplement cash flow as you have a "paid off" asset.

I put my 20% rental property mortgage on the credit card last time they had this special about 7 months ago.

In the previous 4 years of making $208 payments, I netted about 1k in equity.

So far in 7 months, I've netted about 3k in equity (or lessened CC debt). I do pay double my payment now - but that will break even in about 3 years as well. If you calculate having paid the overage on the mortgage in the first place, I'm still up about $1500 in 7 months.

If you have any debt over 2.9% and decent cash flow - you should max out cards on this. Even if just to leverage 1% for CD's.

So is this confirmed, or just an April Fools joke -

Also, any reports of who's been able to BT to a debit card with Penfed, and for which bank?

Is there a way to join PenFed if you don't already know a member? (and aren't part of the Gov't)

Obama4Prez said: Is there a way to join PenFed if you don't already know a member? (and aren't part of the Gov't)

Go here and check out option #7.

psychoslowmatic said: Obama4Prez said: Is there a way to join PenFed if you don't already know a member? (and aren't part of the Gov't)

Go here and check out option #7.
Key piece of information under option #7 >

Membership in NMFA does not need to be maintained in order to maintain membership in Pentagon Federal Credit Union

translation = pay the $20 and you're a golden lifer at PenFed

jackcrawfish said: psychoslowmatic said: Obama4Prez said: Is there a way to join PenFed if you don't already know a member? (and aren't part of the Gov't)

Go here and check out option #7.
Key piece of information under option #7 >

Membership in NMFA does not need to be maintained in order to maintain membership in Pentagon Federal Credit Union

translation = pay the $20 and you're a golden lifer at PenFed


Kudos to you for being helpful. I figured if Obama4Prez couldn't be bothered to read and understand a paragraph after being shown where to find it, he deserved to lose $20 to a good cause every year. Clearly you're a better person than I am.

I got in on the last Penfed 2.9 for life deal ~9 months ago and it's worked flawlessly. I paid off my car loan and have been saving tons in interest every month ever since.

I took advantage of this offer last time PenFed offered it. It's been great and I'll probably add some more debt this time.

One thing I can't figure out is how they're calculating the minimum payment amounts? Card agreement says 2%, but it seems to be something more like 2% minus any amount over the 2% minimum you paid last month. Always keeps me guessing, CSR was not helpful last time I called, but I did not pursue it with more than one call. Anyone else notice this, or figure out the math?

Did a credit limit increase online, go from 10K to 50K no problem at all. Sweet, can't wait for the 2.99% deal.

Was there a hard pull?

internetle said: Did a credit limit increase online, go from 10K to 50K no problem at all. Sweet, can't wait for the 2.99% deal.

site did not say anything about credit pull. I assumed no hard pull.

Sintax said: Was there a hard pull?

internetle said: Did a credit limit increase online, go from 10K to 50K no problem at all. Sweet, can't wait for the 2.99% deal.

So... for option #4, if my dad was in the Navy - but not a member of penfed, do I qualify? He's no longer my legal guardian, nor do I live with him.

Family Member or Housemate
Immediate family, roommate, legal guardian...

Website?

This thread spurred me to finally enroll with PenFed, looking to refinance my car to 3.99% to save $100 a month and get a $50K CC for 2.99%/life, thanks OP.

If I am not a member of Penfed yet, is it better to open an account first then apply for the card, or do it all at once? Does having an account first make it more likely to get approved or get a higher credit limit?

I'm curious what kinda limits they tend to give... I'm ~75k income, ~690+/- 10 fako score... one CC above 80% utilization if that matters

internetle said: Did a credit limit increase online, go from 10K to 50K no problem at all. Sweet, can't wait for the 2.99% deal.How do you do this? Ive scoured the website and cant find anywhere to request a CLI.

ChemEngGuy said: internetle said: Did a credit limit increase online, go from 10K to 50K no problem at all. Sweet, can't wait for the 2.99% deal.How do you do this? Ive scoured the website and cant find anywhere to request a CLI.

Click the [+] next to your credit card on the main Accounts tab, then a panel will open up. On the right side of the panel is a "Change Credit Limit" text link.

Note that you do have to check a box to agree at the bottom of the form:

"I expressly authorize any person, partnership, credit reporting agency, association, firm, corporation, or personnel office or officer, upon your request, to furnish you a credit report or other information concerning me relevant to the review and evaluation of this application or any subsequent re-evaluation thereof whether it be this application or the resulting loan."

Not sure if that is a soft pull, hard pull, or no pull at all.

So do you just reapply for another credit card, just with a larger limit?//

//Disregard. Saw the answer in a context menu.

Pretty sure it is a hard pull. Plus, when it comes to CLI, they have been somewhat anal - even during the days of easy credit. But it's worth to try, to get a better advantage of this deal. I personally don't mind burning an inquiry, to see if I get a CLI.

Would this be a promotional offer or stay on the card for LIFe of the card, IF i opened an account on April 1st, the date of the promotion ?

Secondly, do i need to be a member of PenFed in order ot have their credit card (by donating to NMFA or is there any other way) or can anyone apply ?

Thanks



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014