Big "physical" banks might hate foreclosures, but.....

[Anonymous]

I have found that the big banks (the ones with local branch offices) have not been nice to me in terms of credit cards, but what I'm going to call the "Virtual Banks" (Cap 1, Barclays, Amex) have been very generous in the last year.

In 2011 I had a foreclosure process start on my home after losing my job. Shortly thereafter I started my own business which thankfully has and continues to be markedly successful. Because of putting money into the business and the housing market in the early days, as well as some ignorance on my part at the time, I let the home go - official closing/finishing date of Feb 2013.

I've only been reading these forums and using its tactics for about a year, and I've gone from a single $3k Barclays Juniper card, to everything you see in my signature.

I had Bank of America checking accounts for personal and business for a few years, but in the last month I switched to Chase with the hope that in the future they might be generous with me if I want one of their cards. I run about $50k through business checking accounts each month, and BoA would NOT give me a card, despite every single revolving account having a perfect payment history, and perfect payment history on student loans and car payments. It was the foreclosure they couldn't get past. 

After switching to Chase and giving it a month for them to see what kind of money was coming in to my accounts, I applied for the Chase United Mileage Explorer card - denied. Recon x 2 - denied.

Sad at the time, but read about Amex partner cards, and applied for Hilton Amex and was approved 2 days ago, and today was just approved for Platinum Amex!!

Anyway, it seems like the big banks show you no credit card love, despite a perfect credit card profile and a few with pretty nice limits, if you have a foreclosure, but these "Virtual" banks have been more than generous.

Why is a person any more or less of a risk to one bank vs. another?  Seems like big bank loyalty does not play into their equations of credit-worthiness... 

Anyone else have a similar experience?

[Creditaddict]

Id work on the Chase business side of things since I think they seem to possibly be able to use your bank account information a little more in the approval process and apply for an ink card... surely putting $50k plus through the bank a month you have a business banker at a local branch? I don't always or usually think they are that useful for credit but in the case of chase and that kind of money, they might have a little more pull and help!

[Closingracer99]

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@Creditaddict wrote:

Id work on the Chase business side of things since I think they seem to possibly be able to use your bank account information a little more in the approval process and apply for an ink card... surely putting $50k plus through the bank a month you have a business banker at a local branch? I don't always or usually think they are that useful for credit but in the case of chase and that kind of money, they might have a little more pull and help!

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+1

 I would wait longer then only one month relationship with Chase to apply for a Chase card...

[lonelyisland]

Once you've got 6 months - 12 months history with the cards in your siggy, try Chase again. Seems like they dont like to be early adopters. 

[Anonymous]

Bank of America has a lot of problems with being sued a few times. They are extra sensitive these days. I do have the cash rewards card with them, but Wells Fargo is even worse than BoA. I always thought Cap1 was considered a local bank we have a few branches here in NJ. 

[Anonymous]

Oh, I've never seen a local Cap 1 branch (I'm in FL)... I'm in no hurry whatsoever to get a Chase CC (now that I got my dream Amex Plat!), but was more speaking about whether or not anyone else with any negatives (such as foreclosure) has experienced a similar bias from local vs. what I'm calling "virtual" banks (for lack of a better term)...

[lonelyisland]

No, not really. I have 18 - 150+ lates on my report from our house as well. It didn't foreclose, we got it modified in the end, but Chase has been more forthcoming with credit line than Capital One, thats for sure.