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CU/Banking CC Question

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Erica1
Regular Contributor

CU/Banking CC Question

I know a lot of people here have joined CUs to establish relationships with them.  I've been wanting to do this for a few years now but figured banking with them would be more of a hassle than I was willing to endure to establish that relationship.  When evaluating you for a CC/mortgage/auto loan/whatever you are looking for, how important is your balance in their acct. in evaluating you for the line of credit? 

I like to have my money in an account that I can easily access/make deposits, etc., i.e. a local bank with multiple branches and ATMs.  While I want my money in a local bank, I do want to establish a relationship with a good CU.  I don't really want to move my checking acct. to this CU.  What do you all do with your accts. with CUs to start building these relationships?  Did you use these accts. as your primary checking, have some limited activity in the acct. each month, open a savings acct.?

2/22/13: TU-716, EX-702, 4/24: EQ-749
2/20/14: TU-695, EQ-671
Goal: mid-700's
Message 1 of 8
7 REPLIES 7
ComputerWizMaster
New Contributor

Re: CU/Banking CC Question

The key to building a solid relationship at a bank or credit union is what you aren't willing to do, use them as your primary bank. That is what relationship banking is all about. They get to know you very well because they can see your deposits and withdrawals as well as the fact that you might have high utilization, but you always PIF. They also respect you as an owner and a member and go that extra mile to build their end of the relationship (be it higher credit limits, lower interest rates when borrowing, or higher interest rates when you are lending (depositing)).

 

If I were you I would find a credit union that you really like and are willing to build with. I would then move my primary banking to there and keep the other bank as a secondary repository, if that is a must. I doubt you'll need to really though...

 

Most credit unions are CO-OP members so they share ATMs without charging you. You can even deposit at these other ATMs for some credit unions, like Navy. There isn't a single NFCU branch in Philadelphia and I'm not sure I've really noticed.

Feb. 2012: TU: 677 EQ: 647 EX: 666
Aug. 2013: TU: 729 EQ: 726 EX: 697
Goal 2013+: 720+ All Three
Message 2 of 8
boomhower
Valued Contributor

Re: CU/Banking CC Question

Most CU's are part of a national network that allows you to use the others members branches for deposit/withdrawls and also ATM's. It's as much of a difficulty as you think it is.

Message 3 of 8
CreditCrusader
Valued Contributor

Re: CU/Banking CC Question


@Erica1 wrote:

I like to have my money in an account that I can easily access/make deposits, etc., i.e. a local bank with multiple branches and ATMs.  While I want my money in a local bank, I do want to establish a relationship with a good CU.  I don't really want to move my checking acct. to this CU.  What do you all do with your accts. with CUs to start building these relationships?  Did you use these accts. as your primary checking, have some limited activity in the acct. each month, open a savings acct.?


I use my credit union as the destination of ALL direct deposits. This has advantages for both me and the credit union. In the case of my particular credit union, 3 Rivers in Fort Wayne, IN, this allows for unfettered access to my cash via the Alliance One, CO-OP network ATM and shared branch networks. In return, they have an idea as to my income...making applications for loans and credit cards much, much easier...and earn interest on said deposits. In fact, when I applied for my credit card with them, I was approved very quickly because they verified my income and place of employment per my direct deposit history.

 

IMHO (YMMV, as always), it will be somewhat difficult gaining the trust of and building the relationship with a credit union when you don't have your other accounts with them...at least in part, anyway (i.e. having a PORTION of your direct deposit sent to the CU). Credit unions do not view customers as balance sheets the way larger financial institutions have a tendency to do. They look to build communities for the most part and see members as de facto owners of the institution. Part of this relationship involves pooling resources to loan and earn interest in the most efficient capacity possible. IME, this is particular to credit unions...as I have had upwards of $10,000 with BOA and had them tell me they couldn't give me a SECURED credit card for $500 because of a past BK.

 

No SECURED card to help me build credit...when I have $10,000 in your bank...UNBELIEVABLE...but I disgress...

 

Whether their goals and yours intersect is really for you to decide. There is absolutely nothing wrong with simply wanting the best product available for your credit profile...relationships with banks/CUs/credit card companies be damned. For me, I very much appreciate that my CU sees me as a person and rewarded my checking/savings business and hard work re-establishing my credit with a credit card with terms that are far superior to any other lender to date. You may have different goals and will want to evaluate your options based on fulfilling them.

 

Good luck!

In my wallet: Apple $5,000, local CU $15,000, Bread AMEX $5,000. In my sock drawer: A few other cards Smiley Happy

Current scores (EQ, EX, TU): 787, 788, 796
Message 4 of 8
bichonmom
Senior Contributor

Re: CU/Banking CC Question


@Erica1 wrote:

I know a lot of people here have joined CUs to establish relationships with them.  I've been wanting to do this for a few years now but figured banking with them would be more of a hassle than I was willing to endure to establish that relationship.  When evaluating you for a CC/mortgage/auto loan/whatever you are looking for, how important is your balance in their acct. in evaluating you for the line of credit? 

I like to have my money in an account that I can easily access/make deposits, etc., i.e. a local bank with multiple branches and ATMs.  While I want my money in a local bank, I do want to establish a relationship with a good CU.  I don't really want to move my checking acct. to this CU.  What do you all do with your accts. with CUs to start building these relationships?  Did you use these accts. as your primary checking, have some limited activity in the acct. each month, open a savings acct.?


You could look for a local CU. It doesn't have to be one that is talked about here. Then you would have access to your money, able to walk in to a branch, etc.

 

@right now, I have 2 CCs w/CUs that I don't bank with. I do have a $5 savings acct with each of them, which is required for my m'ship. However, I will say that they didn't give me the ginormous limits you read about  here. Navy only gave me $2k and my local CU started me out at $500 and I CLI'd @ 7 mos to $2500. It is possible that if I did banking with them and had direct deposits set up (which I don't have anyway because I'm self-employed), then I could have been approved for higher CLs.

 

EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Message 5 of 8
Anonymous
Not applicable

Re: CU/Banking CC Question

i have a "big" bank for my main needs but i use psecu as my savings bank, just transfer over a certain amount every month........and i use their cc/psl product so it works out for both of us. i wish i could move everything over but it doesn't make financial sense for me to do it; i do love the idea of the "old" school way of banking, developing a relationship with the bank, its employees, such that when i need to utilize a line of credit, we know where each other stands........

Message 6 of 8
Erica1
Regular Contributor

Re: CU/Banking CC Question

Thanks for the responses, all. I appreciate te feedback on everyone's different experiences from primary banking to just having savings accounts with the CU. that's what I was looking for. Of course I know the best route in the CU's eyes would be to use them for primary banking but it helps to know others didn't go that route and were still able to take advantage of their benefits of membership. Thanks again!
2/22/13: TU-716, EX-702, 4/24: EQ-749
2/20/14: TU-695, EQ-671
Goal: mid-700's
Message 7 of 8
LS2982
Mega Contributor

Re: CU/Banking CC Question


@Erica1 wrote:

I know a lot of people here have joined CUs to establish relationships with them.  I've been wanting to do this for a few years now but figured banking with them would be more of a hassle than I was willing to endure to establish that relationship.  When evaluating you for a CC/mortgage/auto loan/whatever you are looking for, how important is your balance in their acct. in evaluating you for the line of credit? 

I like to have my money in an account that I can easily access/make deposits, etc., i.e. a local bank with multiple branches and ATMs.  While I want my money in a local bank, I do want to establish a relationship with a good CU.  I don't really want to move my checking acct. to this CU.  What do you all do with your accts. with CUs to start building these relationships?  Did you use these accts. as your primary checking, have some limited activity in the acct. each month, open a savings acct.?


I do 50% of my everyday banking and have direct deposit setup with my CU (PSECU). I also have a savings acct. I'm hoping history will net me credit products with them next year!




EQ FICO 548 3/3/16
Message 8 of 8
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