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Arizona Federal Credit Union is no good.


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I was really happy with these guys. I recently had my CC limit on the my Visa to $3000 from $2000. That was actually in October and then about two week ago they dropped my CL to $200. I called and asked and they said my credit is now bad based on a soft pull. So, I got angry and got a supervisor who without my approval pulled my report and said he would need to get back to me. When he finally did he said there was not noticeable difference from my report from the previous pull in October, but only could say that my report was now high risk. I think they did it because I had a zero balance on it for 3 months. Needless to say, they would not budge, so I canceled it and applied for a American Express the next day. I got approved and they pulled the same experian report AZFCU did. Amax also pulled TransUnion. Needless to say, I am leaving AZFCU for all my banking. They have lost a customer for ever.

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Ya know, I have had some bad luck with AZ FCU as well. I signed up with them when I moved to AZ in Jan 08 and they wouldn't give me a low limit card/overdraft (not even $200) just so I could start building credit. They said I needed to wait 6 months to see how I managed my checking. (Meanwhile, I already had most of the cards below). I went back in the summer and they still said no, that I needed to have more debt experience with them -- which makes no sense if they wont give me any credit. So, I took out a CD loan to build credit history with them and paid it off in 3 months. Since then, I haven't wanted to risk another inquiry with them -- but I did check with them for a mortgage. They told me no off the bat without looking at anything -- Countrywide approved me the next day no problem. So, long story short, I have moved most my banking elsewhere. The only things at AZFCU now are for things that are already set for auto-debit until I decide to move those as well.

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I think the whole system is jacked up... it almost seems as there is no standard when granting CLIs or new account limits. I recently requested a CLI with Citi for my Hilton Honors card. Limit is 5k. I've run the card up to, but never past the limit, and on a couple of occasions, had to pay twice in a month. CLI denied - too much total available credit on all accounts.

So, In a moment of weakness, I applied for their signature card (on the same day, within minutes)...approved - 10,000k.

Makes no sense to me. I now have 35k in credit with Citi. I probably use 6k of that a month - of course, paying it off each month.

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I would write what I call a "SHAME ON YOU LETTER" to that CU President and CC the board members.

Thats a great idea! make sure you let them know what branch and who you talked to tha told you that you were a "high risk". The more you can point someone out the better. Just make sure you push the right guy in front of the bus

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Two comments.

(1) Bankrate.com has a system for evaluating banks and credit unions called "Safe & Sound". Out of a possible five stars, last September they gave AZFCU one star:

http://www.bankrate.com/brm/safesound/cumm.asp?fedid=2000001747

http://www.bankrate.com/brm/safesound/cufin.asp?fedid=2000001747

(2) For what it's worth ..

"Credit unions fare better than banks but facing strains"

http://www.bizjournals.com/phoenix/stories/2008/10/20/story3.html

Friday, October 17, 2008 | Modified: Monday, October 20, 2008

In the second quarter, Arizona Federal Credit Union reported a $42.5 million loss and charge-offs of $51.9 million. During the same period last year, the credit union — which serves more than 230,000 members — recorded a profit of $10 million and charge-offs of $10.7 million.

So, why the change?

“Members not repaying their loans,” said AFCU President and CEO Ron Westad.

In the past 10 years, the credit union’s highest delinquent rate — loans 61 days late or more — was 2 percent. Going into 2007, it was 1 percent. Since then, delinquency rates have quadrupled and the loss rate is six times higher than at the beginning of last year.

Westad attributed the rising figures to several factors. Mortgage loans acquired elsewhere reset to higher rates and jeopardized other obligations, such as vehicle or personal loans. Also, income levels declined in the housing crash; home equity vanished; the cost of commodities and gas, particularly for those with long commutes, increased; and jobs were lost.

In an effort to save members’ credit scores, AFCU launched an initiative in mid-2007 for those who had a short-term inability to meet their credit obligations. The measure included financial assessments, counseling, reworking loan terms and conditions, and third-party service referrals. To date, the agency has reworked more than $25 million in loans.

[...]

Although AFCU memberships are increasing, loan applications have decreased dramatically, from an average of 10,000 a year to about 7,500.

“We are no longer able to rely on past performance to predict future repayment,” he said.

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[...] So, I took out a CD loan to build credit history with them and paid it off in 3 months. Since then, I haven't wanted to risk another inquiry with them -- but I did check with them for a mortgage. [...]

Third comment. When I was at an AZFCU branch a few weeks ago, I was told that besides the hard inquiry for when you become a member, the only other time there is a hard inquiry is when you apply for a loan product/service; i.e., he said that once you are a member, there are no (further) hard inquiries when you open any type of deposit account/service.

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Fourth comment.

I've been spending time lately looking closely at the credit unions in Arizona that I'm eligible to join. The one that so far has impressed me the most, particularly for the loan rates compared to other credit unions (in Arizona), is Canyon State Credit Union. This is one I plan to look into first when I'm ready again down the road to apply for something.

Canyon State Credit Union

http://www.canyonstatecu.org/body.php?link=locations

profile of Canyone State Credit Union:

http://creditunionaccess.com/cu68502.htm

And they got a great rating by Bankrate's Safe & Sound

http://www.bankrate.com/brm/safesound/cumm.asp?fedid=2000068502

http://www.bankrate.com/brm/safesound/cufin.asp?fedid=2000068502

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