Credit Union Question

[Anonymous]

I'm certain the answer to my question is on here somewhere, but I can't find it.

In regards to cu's, does it make it easier (or matter at all) to get credit products (cc's, LOC's, auto loans, etc.) if you actually 'bank' with them? Meaning checking and savings accounts that are used regularly and funded through direct deposit. I now have checking and savings accounts through two banks and two credit unions. I have credit cards through all of them, but no other credit products. My main banking is done through Capital One, but I'm seriously considering switching that role to either NFCU or USAA; my other CU is a small, local institution. 

I make deposits, and try to use the non primary institutions as much as possible, but it's getting a little complicated. Also, the wife and I do okay for ourselves, but properly funding 8 accounts is not realistic; so I add a little to each with every paycheck.

I was thinking about joining another rebuilder friendly CU (suggestions anyone???) for another credit card (and maybe something else down the road), but I really don't want to juggle two more bank accounts. 

So, finally back around to my question (I get a little long winded, sometimes) does having active/well used accounts impact a bank/cu's decision on granting credit? Would I have the same chance for approval if I only have a savings and/or checking account with $25 in it as I would if I actually banked through them?

[SouthJamaica]

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@Anonymous wrote:

I'm certain the answer to my question is on here somewhere, but I can't find it.

In regards to cu's, does it make it easier (or matter at all) to get credit products (cc's, LOC's, auto loans, etc.) if you actually 'bank' with them? Meaning checking and savings accounts that are used regularly and funded through direct deposit. I now have checking and savings accounts through two banks and two credit unions. I have credit cards through all of them, but no other credit products. My main banking is done through Capital One, but I'm seriously considering switching that role to either NFCU or USAA; my other CU is a small, local institution. 

I make deposits, and try to use the non primary institutions as much as possible, but it's getting a little complicated. Also, the wife and I do okay for ourselves, but properly funding 8 accounts is not realistic; so I add a little to each with every paycheck.

I was thinking about joining another rebuilder friendly CU (suggestions anyone???) for another credit card (and maybe something else down the road), but I really don't want to juggle two more bank accounts. 

So, finally back around to my question (I get a little long winded, sometimes) does having active/well used accounts impact a bank/cu's decision on granting credit? Would I have the same chance for approval if I only have a savings and/or checking account with $25 in it as I would if I actually banked through them?

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In most cases you have to be a member, which means having at least a savings account.

As to activity, I do believe it would be taken into account on a manual loan review.

[Anonymous]

Nice response by SouthJ.

As in so much of life, the best solution is often a compromise.  In this case the middle ground solution may be this:

(1)  Keep the bank accounts open at all your institutions....

(2)  Do it with small balances and minimum work on your part

#1 will make you feel like you have a foot in the door at all these places.

#2 will solve the problem of not having full access to most of your money and the aggravation of making constant transactions.

Here is my advice for implementing #2.

Using the "billpay" feature at one of your primary banks, set up an automated quarterly "push" of $1 into all of these accounts.  Thus each of these little CU accounts will show activity four times a year.  Every two years you can sign on to the CU in question and transfer the extra $16 out.

Once you set everything up, you are good to go.  You should also be showing some activity with tthe CCs you have at these CUs as well.  That could be as little as a quarterly swipe too.

Should you ever want to formally apply for some big loan product through one of these CUs, you can transfer more money in and start showing more activity in the month before you apply.

[Anonymous]

Excellent advice, CreditGuyInDixie! Sounds like a plan.

[EAJuggalo]

I was told last year by the LO at my local CU that the only reason I was approved for the auto loan I got was because of my year of active history with that CU.  At that time I had no credit score and the only thing in my report was a 14 year old auto loan with Chase.

[Anonymous]

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@EAJuggalo wrote:

I was told last year by the LO at my local CU that the only reason I was approved for the auto loan I got was because of my year of active history with that CU.  At that time I had no credit score and the only thing in my report was a 14 year old auto loan with Chase.

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Thanks!  Real helpful feedback.

As I consider what you just said, it makes me more confident that the advice I gave our OP was right.  The lender explained that the year of active banking history was pivotal for you because you had no FICO score.  Our OP has at least four credit cards and definite FICO scores for all three bureaus.

So sure, he should keep his deposit accounts active, partly because that will make him happy.  But it sounds like he doesn't need lots of transactions, sizable balances, etc.  The little balances with a small quarterly auto-deposit should work out fine for him, and probably for most people who want to maintain a banking relationship but without any headache.