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Joining PenFed When You Have a Credit Freeze

Sunday, January 24, 2010 - 12:10 PMPentagon Federal Credit Union - Details
One of the few downsides with Pentagon Federal Credit Union is that they do a hard credit inquiry when you join. This can be problematic when you have a credit freeze. Boglehead member neverknow reports on his problem when he tried to join PenFed with his security freeze that he had with all 3 credit bureaus.
2
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Wednesday, January 27, 2010 - 9:47 AM
I worked for them for 10 years and have a good understanding of the business practices. I did not work in an area that dealt with decisions on pulling credit reports nor did I pull them. However, the reason they pull them on EVERYONE joining, not just loan applicants, is to essentially keep out the deadbeats (that's my term, not theirs). Experience has shown that people with crappy credit, with a few exceptions, tend to also be bad with their deposit accounts as well: overdraft on checking accounts, depositing bum checks, etc. And of course, since Pentagon Federal does loans only on A credit, these people won't get the loans anyhow. They'll get mad, close their accounts, and badmouth the credit union. And they still won't have their loan. So it does neither the credit union nor the potential member any good for them to accept people with really crappy credit, and a credit freeze by all three bureaus is as bad as it gets without having a bankruptcy on your file.
3
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,958
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