topic Re: Why do they ask Savings/Checking on CC applications in Credit Card Applications

Why do they ask Savings/Checking on CC applications

SkyCommander — Sat, 26 Sep 2020 16:26:39 GMT

If application decisions are based on credit scores and history why do banks ask if you have a savings and checking account and their amounts? Would there really be a difference if someone with 50k/yr income with 5k savings vs 50k/yr income with 50k savings?

Re: Why do they ask Savings/Checking on CC applications

Anonymous — Sat, 26 Sep 2020 16:31:55 GMT

It's just another piece of the financial picture they're trying to put together on a prospective borrower.

Re: Why do they ask Savings/Checking on CC applications

Anonymous — Sat, 26 Sep 2020 17:06:47 GMT

I’ve never had a credit card company ask dollar amount in a checking or savings account. Just simply which I have.

Re: Why do they ask Savings/Checking on CC applications

Anonymous — Sat, 26 Sep 2020 17:30:12 GMT

@Anonymous wrote:
I’ve never had a credit card company ask dollar amount in a checking or savings account. Just simply which I have.

Never asked amounts, either.

I agree it is additional financial risk assessment info.

They probably have stats that someone that has a savings is less likely to default since, theoretically, they, theoretically, have money in said savings account to pay their CC bill, need be.

Of course one could have a savings with $0 in it, but they probably have their reasons.

If the creditor is asking about specific amounts of your accounts it is probabpy a deeper look into the theoretical reasoning above. If someone has money in their savings, they are less likely to default on their CC, since they could draw from their savings to pay it.

Re: Why do they ask Savings/Checking on CC applications

coldfusion — Sat, 26 Sep 2020 18:26:27 GMT

They ask in order to further validate your ability to pay and/or establish your potential as a prospective client for additional services.

A blatant example of a bank using detailed financial information would be City National Bank. The application for the Crystal has 5 pages worth of questions and 7 pages worth of instructions, partly because they use the card as a marketing tool to attract high net worth clients.

Re: Why do they ask Savings/Checking on CC applications

SkyCommander — Sat, 26 Sep 2020 18:55:06 GMT

Maybe the apps have changed recently but when I would fill out I would see checking/savings listed but also a faded "optional" beside it. I remember my Citi or Barclays apps asking. I'd still enter my savings amount thinking it would help.

Re: Why do they ask Savings/Checking on CC applications

Anonymous — Sat, 26 Sep 2020 19:00:07 GMT

I've been asked if I have deposit accounts and for total assets but not individual balances. There are people who have trust funds or inheritances that also have jobs so I can see why the banks would want to know if you have more money than the $30K income they can see when figuring out what limits are appropriate.

Re: Why do they ask Savings/Checking on CC applications

ccquest — Sat, 26 Sep 2020 21:57:29 GMT

Haven't seen it other than on Amex when I asked for a CLI. It's optional and probably helps give a bigger picture and is especially helpful for lower income amounts if they have huge savings elsewhere.

Re: Why do they ask Savings/Checking on CC applications

Meanmchine — Sun, 27 Sep 2020 03:49:01 GMT

Open a small checking and savings account in some CU and let it sit forever. Then you can always answer "yes"

Re: Why do they ask Savings/Checking on CC applications

Anonymous — Sun, 27 Sep 2020 19:00:06 GMT

Well, one could always have reserves just not in a Saving account. So while you do have cash assests they're not immediately seizable if you default.

Re: Why do they ask Savings/Checking on CC applications

Credit4Growth — Sat, 02 Jan 2021 20:40:10 GMT

@Anonymous wrote:
I’ve never had a credit card company ask dollar amount in a checking or savings account. Just simply which I have.

A CSR at Discover asked this of me 1 time while on a phone call to request a CLI, that was a while back... I am starting to disclosing assets could assist with CLI and or starting limits... I presume it is used to supporting one's ability to pay.

Re: Why do they ask Savings/Checking on CC applications

gingerflower — Mon, 28 Sep 2020 17:15:33 GMT

@Anonymous

+ 1 never had a bank ask for how much you have in savings/checking...I understand if the bank ask if you have savings/checking..Very odd