A blogger and contributor here recommended Digital Federal Credit Union (DCU) as a possible lender in my search for cash secured credit cards to establish my credit history, and I got approved for one today.
It means this would be one of my first credit cards.
However, in my search for reviews of the DCU, I found a lot of negative feedback about them:
- closing people's credit cards, who have been members in good standing for 20+ years
- sending to collections payments due only by 7 cents without contacting the member at all
- charging members account inactivity fees without notifying them in advance
Here are some excerpts from various sites (they can be "googled up" for the source links)
The general perception about Savings Account is the money will grow and does not require any activity. But for the checking account it will require some activity like direct deposit and things like that. I had a savings account with DCU. The money I deposited there became half the money after two years. When I called the customer care lady, she said, since the account did not have any activity, they did this and they cannot reverse the fee. I am a poor man. I had a different perception about Credit Union Earlier. I logged in yesterday to find they had been charging me $5/mo for the past several months because my account has been "inactive".
Very difficult to work with regarding fees, whether or not you were at fault. Warning: Hope that you never have a problem with your account, because if you do you'll wish that you'd gone else where.
My question is:
can DCU, or any lender, be held accountable for trashing your score? (specially, when they are one of your oldest credit lines)
For example, can't I request/make them change a card to secured from secured instead of them closing my card altogether and destroying my history with them?
Of course, suing them is the last option, but these things happen in the worst of times when you might not have resources to hire an attorney.
I am proactively taking steps, that I think will hedge the possible risk with them by opening a cash secured credit card account with SchoolsFirst CU at the same time (so that both have the same age and credit limit):
SchoolsFirst does not pull your credit any time, so I guess my applying with them would not many any negative impact on my credit.