Banks That Factor In Relationships

[johnicek]

I'm wonderiong if anyone knows any banks that factor in relationships into their credit decisions.

For example, a bank that will give an 18 year old a low limit CC because they have had a savings account with them since they were young and a checking account since they were a teen. From my experience, it was a challenge finding someone to give me my first line of credit. At my former bank (First Merit), one of the managers wouldn't even talk to me about a CC unless I had a 750+ or a large asset such as a home. Even after 16+ years with them, and balances totaling over 45k, that didnt make a difference, not even a secured option.

Does anyone know of banks that will give credit based on relationships? Obviously, they still have to look at income, etc. But I am curious to know, as well as help others in the future both on the forum, and off.

[RobertEG]

Having had a long prior relationship with a creditor can certainly be a factor.

A long prior relationship can certainly be an indication that you may be a desirable consumer with assets.

However, creditors also want to see history of how you have used your credit in the past.

FICO shows your risk of being late under terms of accounts for which you are legally responsible.

While a minor, you dont have credit in your name, and thus any accounts are not representative of your own risk.

Bank accounts are not credit, so dont demonstrate efffective use of credit.  They demonstrate assets.

FICO is not the only factor used by creditors.  However, it is a quick and cost effective way of evaluating credit with low risk.

Thus, a lot depends upon how much time they wish to invest in consideration of issues other than your three digit score.

Big banks may not see a lot of profit for low principal apps for credit in taking the time to consider other factors.

One method that is effective, if you are eligible, is to join a credit union.  They will often take the time to consider factors other than just a three digit FICO score, and can be a very effective way to begin building credit.  You have a real person to talk to, and thus have a relationship.