topic Re: US Bank - Strange Decision in Credit Cards

US Bank - Strange Decision

chrisw1968uk — Tue, 29 Jan 2019 03:58:22 GMT

Hi All - I LOVE US BANK and this is not a "bitch" by any means - just trying to figure out their logic:

I have 2 of their cards - $9k and $15k CL's with $0 balance - I don't have any 0% intro cards so came out of the garden and apped for another of theirs - I got approved for $22k.

I told them that i would be willing for them to close out my 2 existing cards ($24k CL) - If they wanted to add $8k to my new card - making this new card $30k CL - I figured that I would get my first $30k card - and they would be reducing their "potential exposure" to my by $16k - They wouldn't do it - they are not happy for me to have a total of $30k on one card - but fine for me to have $46k spread over 3, like i said, i'm fine with it - but trying to figure their logic (util is not a consideration)

Re: US Bank - Strange Decision

Pikaboo-icu — Tue, 29 Jan 2019 04:39:35 GMT

Congrats..

You don't say which two cards you have & what the third is; is it possible they aren't able to be combined?

Re: US Bank - Strange Decision

FinStar — Tue, 29 Jan 2019 04:45:23 GMT

Interesting OP. I've never had an issue with them merging 2 CCs in the past, but then again that's been a while ago so I'm not sure if their UW or internal policies have changed.

I have a separate CC with ELAN (Fidelity Private Client) and that one is $50K (migrated from FIA/BoA).

I was approved for their Business Edge WEMC late last year and I didn't run into any issue as far as overall USB exposure.

Re: US Bank - Strange Decision

Shadowfactor — Tue, 29 Jan 2019 05:18:20 GMT

USB does not do credit limit reallocations.
They changed their policy a while back to stop allowing it

Re: US Bank - Strange Decision

Anonymous — Tue, 29 Jan 2019 16:40:20 GMT

If I was US Bank:

I’d say no also. I have potential 3 accounts that I can come after you for in case of a fall out, and 3 different accounts that I can write off as potential loss to my portfolio, instead of just one. You pay off everything, I don’t see a reason why I’d be at a loss letting you hold 46k credit. -USBank

Re: US Bank - Strange Decision

chrisw1968uk — Tue, 29 Jan 2019 17:05:05 GMT

Wouldn't it be better for them to potentially come after me for 1 delinquent account instead of 3? I volunteered to give up $16k of my CL to them - no big deal, it's all good

Re: US Bank - Strange Decision

Anonymous — Tue, 29 Jan 2019 17:27:45 GMT

Total, total guess here, but it's possible that they are more comfortable with it being spread over three because from a risk perspective, if you max out one of your cards and they have some sort of concern, they can put an authorization hold on the other two cards until they speak with you.. with it all on one card, you could just max out your $30k limit before they have a chance to react. Again, I am totally guessing and have no experience with US Bank.

Re: US Bank - Strange Decision

Anonymous — Tue, 29 Jan 2019 17:28:00 GMT

change the sig! diamond no more!

Re: US Bank - Strange Decision

FinStar — Tue, 29 Jan 2019 17:32:45 GMT

It's kind of a double-edged sword per se. If their internal algorithms and subsequent risk assessment determines there's a good chance one of your accounts may be in the precipice of default, they can mitigate the losses on the other 2 accounts by CLDs or closures vs a larger loss on a single account with a higher CL. It really depends on the issuer, though.

By and large, for those who prefer to have a single account with a higher CL and sensible usage, it provides greater flexibility vs juggling 2 or 3 CCs, especially if the single product offers a much better return rewards-wise, etc. Some lenders don't have much of a restrictive issue on partial or whole reallocations such as Chase, AmEx, Barclays, etc.

ETA - @Anonymous beat me to it 😁

Re: US Bank - Strange Decision

Anonymous — Tue, 29 Jan 2019 17:35:18 GMT

@FinStar you and I are just too smart and synchronized for our own good ;-P

Re: US Bank - Strange Decision

chrisw1968uk — Tue, 29 Jan 2019 17:49:30 GMT

Yeah, I know - my first app in a few years lol

Re: US Bank - Strange Decision

UpperNwGuy — Tue, 29 Jan 2019 22:09:46 GMT

Most banks have maximum limits on single credit cards that are lower than their combined maximum limit for two or more cards. The single card with the high limit is considered to be more of a risk.