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Do Banking Relationships Still Matter?

Senior Contributor

Re: Do Banking Relationships Still Matter?


SouthJamaica wrote:



Smiley Happy Those words have never been spoken to me either.


And I don't think it's common that they would be spoken, even if a banking relationship did have a positive impact in a certain situation.  But the post above just verified that those words have been spoken, so there's the answer that banking relationships DO help at times.

 

I think the more important question here is whether anyone has ever experienced the opposite... that is, a prior/lengthy banking history/relationship hurting.  THAT is something that I've never heard of.  And, until I do, we can continue to say that a prior relationship "can only help..."

 

A similar debate that comes up in the CC forum is whether or not a heavy spend positively impacts CLI attempts.  Some say it does, some say it doesn't.  Those that say it doesn't reference that they barely spent anything on a card but still got a solid CLI.  Those that say it do reference that following their big spends/payments that they've seen the most favorable CLIs.  Again, though, I've never heard anyone say that a big spend and payment on a CC hurt their CLI chances or result.  A million people may come along and say based on their experience that it doesn't/didn't help, but none are going to say that it hurt.  I feel that this topic exactly mirrors the banking relationship debate.

Valued Contributor

Re: Do Banking Relationships Still Matter?


climbfire wrote:

tacpoly wrote:
Relationships matter when you keep a large amount of money (7+ figures) at the financial institution. If you have that, they will give you slack and benefits.


Realistically, it doesn't matter if you've had over $1mm in the bank for years if you've fallen on hard times. A 'relationship' with a bank won't help you if you've lost your shirt in the stock market and need to get a mortgage in your depleted state and without sufficient income. They'll treat you well when times are good but won't be happy to work with you again until you've picked yourself back up off the floor!

I just wrote a high six figure check at the bank to fund a new account today. Everyone knew my name before I left, but they would forget me in a heartbeat if I lost everything.


The importance of saving money

 

and it's gone - Please step aside for people who actually have money with the bank.

 

and it's gone.jpg

 

http://southpark.cc.com/clips/27im67/the-importance-of-saving-money

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Valued Contributor

Re: Do Banking Relationships Still Matter?

In my experience, smaller community banks (before they get bought out by larger ones) and in come cases Credit Unions (not PenFed !) do try to work with their customers, as far as large banks, its "what have you done for me lately?" and you are just a disposable number - Capital One I can say for sure a 20 year relationship (including merging in of Chevy Chase Bank) and a high cash 6 figure balance in your accounts, mean absolutely nothing. 

Community Leader
Senior Contributor

Re: Do Banking Relationships Still Matter?

BBS has surely hit the mark when he has distinguished two scenarios:

 

(1)  The person with the long positive banking relationship, and who currently is in great shape, making further requests.

 

(2)  The person with the long positive banking relationship, and who (due to recent events) is now in bad shape, and is asking for special favors.  I have lost my job, my wife's divorcing me and taking everything, I made some risky investments and lost everything, my daughter has cancer and I won't be able to pay the mortgage, etc.

 

Some people are talking about #1.  Others are talking about #2.  Others are sort of talking about both.  And often there is a lack of explicit awareness of which one he is talking about.

 

I am aligned with BBS on #1.  My guess is that the relationship does help.  I base this on several things.  My local bank does indeed do stuff for me that none of the major banks were willing to do.  For example, they were willing to do a 1-time hard pull for my pre-qual letter for a mortgage (a letter which by industry standard lasts only for 90 days).  They were willing to renew it for several 90 day periods in a row without a hard pull, which all the bigger places said "Sorry, but our policy. is to do a hard pull each time."  My local bank has done other things like that.

 

I also base this on customer service reps who will actually say: "We can see you have been a customer with us for a long time and we want to thank you for that.  Is there anything we can be doing for you?"  I do not hear this except when in fact I have been with them for several years, having more than one product.

 

#2 I am less surprised with, since it has to do with risk managment.  Actually, in cases like this, it is probably important for bank employees to NOT let warm personal feelings to cloud their judgment if the consumer has a highly risky profile.

 

 

Senior Contributor

Re: Do Banking Relationships Still Matter?

CGID, nice job breaking down the discussion into sectors #1 and #2 above.  I too think that many people aren't distinguishing between the two.  Or, another possibility is that they've experienced #2 which is then influencing their feelings on #1.

 

Like several others, I have experienced both and have no problem at all seeing each for exactly what it is, exclusive of the other.

Regular Contributor

Re: Do Banking Relationships Still Matter?


tacpoly wrote:
Relationships matter when you keep a large amount of money (7+ figures) at the financial institution. If you have that, they will give you slack and benefits.

 

Someone who has no relationship could walk into the same bank with those 7+ figures and get the same service.  They don't care about you or your relationship, just the $$$

 


Frequent Contributor

Re: Do Banking Relationships Still Matter?


Glen_M wrote:

Someone who has no relationship could walk into the same bank with those 7+ figures and get the same service.  They don't care about you or your relationship, just the $$$

 



Sure, and I've taken advantage of just that.

Contributor

Re: Do Banking Relationships Still Matter?

An excellent case in point this past weekend. I have a 12-year history with a bank. My wife went in to set up a business account. We have our direct deposits and a HELOC. I've had a credit card with them that I paid in full a few years back. We go in to set up my wife's account. WE also open up another checking for my wife's discretionary spend account. Our deposits total about $150k per year. They tell me I'm pre-approved to apply for their cards. I'm hesitant because this bank hasn't been the friendliest when it comes to credit cards. Before paying off the last credit card, I asked for a $500 CLI and was denied. lol  Pissed me off, so I paid it off with part of my annual bonus. 

 

So, this weekend, I figure, what the hell, my bonus is coming up in a few months, let me app, use the BT offer, and pay down some other debt. I app in-branch. I get approved for $1000. lol  I have more than that in cash sitting in the bank. Really? Is that what our relationship results to? I haven't had a starting credit line that low since college. So, a 12 year history with not a single negative payment history, $150k, and applying for more products from this bank got me a $1000 limit. I'm so frustrated. Perhaps I've been spoiled with the $10k starting credit lines. I would have been okay with a $5k line, but $1k?  

Senior Contributor

Re: Do Banking Relationships Still Matter?

You mentioned paying down other debt.  What is your current credit card utilization?  If your utilization is outside of the ideal range, it's possible that your current utilization adversely impacted your ability to secure a solid SL on the new card you just apped for.  You also mentioned you had a CC with them in the past and that you "paid in full" a few years back.  I'm not sure if your PIF comment means you never carried a balance on it, or if you did carry balances on it and just finally paid it off (and possibly closed it).  If it was the case that you were carrying balances on it, especially if they were significant, that this history is on file with them and also impacted their decision to some degree.

Contributor

Re: Do Banking Relationships Still Matter?


BrutalBodyShots wrote:

You mentioned paying down other debt.  What is your current credit card utilization?  If your utilization is outside of the ideal range, it's possible that your current utilization adversely impacted your ability to secure a solid SL on the new card you just apped for.  You also mentioned you had a CC with them in the past and that you "paid in full" a few years back.  I'm not sure if your PIF comment means you never carried a balance on it, or if you did carry balances on it and just finally paid it off (and possibly closed it).  If it was the case that you were carrying balances on it, especially if they were significant, that this history is on file with them and also impacted their decision to some degree.


It's probably more about it being a computer than a human who gave out that SL. I will call and see what they can do. I have a balance I want to transfer after I pay off some cards with my bonus.