topic Do deposits help in getting approved? in Credit Cards

Do deposits help in getting approved?

Anonymous — Tue, 05 May 2020 21:58:41 GMT

Hello just a general question for the community and so I can get DPs.

If you make a large deposit into a saving or checking account, and just keep it there. Does that improve your chances of getting approved for a credit card from that particular financial institution? Especially when it comes to denials of DTI?

I'm sorry if this seems like a silly question, just would like to know.

Re: Do deposits help in getting approved?

dragontears — Tue, 05 May 2020 22:04:25 GMT

@Anonymous wrote:
Hello just a general question for the community and so I can get DPs.

If you make a large deposit into a saving or checking account, and just keep it there. Does that improve your chances of getting approved for a credit card from that particular financial institution? Especially when it comes to denials of DTI?

I'm sorry if this seems like a silly question, just would like to know.

It is not that silly of a question since it has been asked about/discussed frequently.

A bit of the answer depends on the definition of "large deposit" for some it would be a few thousand, for others it is 10s of thousands or even >100k.

A few thousand isn't likely to sway a bank (in my opinion) but if you tossed >100k in the bank is going to be more motivated to keep you happy so you continue to let them play with your money.

Re: Do deposits help in getting approved?

Anonymous — Tue, 05 May 2020 22:14:41 GMT

@dragontears wrote:
@Anonymous wrote:
Hello just a general question for the community and so I can get DPs.

If you make a large deposit into a saving or checking account, and just keep it there. Does that improve your chances of getting approved for a credit card from that particular financial institution? Especially when it comes to denials of DTI?

I'm sorry if this seems like a silly question, just would like to know.
It is not that silly of a question since it has been asked about/discussed frequently.
A bit of the answer depends on the definition of "large deposit" for some it would be a few thousand, for others it is 10s of thousands or even >100k.
A few thousand isn't likely to sway a bank (in my opinion) but if you tossed >100k in the bank is going to be more motivated to keep you happy so you continue to let them play with your money.

I was thinking more about a couple of thousands. I don't highly recommend having 100k sitting in just a saving account at that point. The only thing that will be appropriate if you are trying to reach the tiers of BofA, at the point just put it in a Merrill Lynch account.

Edit: Also, will it sway a small CU?

Re: Do deposits help in getting approved?

M_Smart007 — Tue, 05 May 2020 22:19:22 GMT

IMHO, The only time it swayed a CU for me, Is when I had large direct deposits going into Pentagon Federal,

and it totalled over $100K .. then they gave in. I doubt any bank or CU would be swayed by a few grand.

For BoA or Chase, it would probably take a Million

Re: Do deposits help in getting approved?

Anonymous — Tue, 05 May 2020 22:23:44 GMT

@M_Smart007 wrote:
IMHO, The only time it swayed a CU for me, Is when I had large direct deposits going into Pentagon Federal,
and it totalled over $100K .. then they gave in. I doubt any bank or CU would be swayed by a few grand.

For BoA or Chase, it would probably take a Million

Thanks for the DP.

If you have millions looking at CU and Banks for Credit Cards is not needed haha! Just go for the super exclusive cards that no one could get haha.

Re: Do deposits help in getting approved?

coldfusion — Tue, 05 May 2020 22:34:56 GMT

@M_Smart007 wrote:
IMHO, The only time it swayed a CU for me, Is when I had large direct deposits going into Pentagon Federal,
and it totalled over $100K .. then they gave in. I doubt any bank or CU would be swayed by a few grand.

For BoA or Chase, it would probably take a Million

At $1 million the financial advisors at the local BoA financial center(s) will make sure you know each other even if you have a self-managed portfolio. $1 million at Chase barely gets you above peon class, you start to get interesting at $2 million and $10 million makes you fairly special.

Re: Do deposits help in getting approved?

Anonymous — Tue, 05 May 2020 22:41:28 GMT

@dragontears wrote:
@Anonymous wrote:
Hello just a general question for the community and so I can get DPs.

If you make a large deposit into a saving or checking account, and just keep it there. Does that improve your chances of getting approved for a credit card from that particular financial institution? Especially when it comes to denials of DTI?

I'm sorry if this seems like a silly question, just would like to know.
It is not that silly of a question since it has been asked about/discussed frequently.
A bit of the answer depends on the definition of "large deposit" for some it would be a few thousand, for others it is 10s of thousands or even >100k.
A few thousand isn't likely to sway a bank (in my opinion) but if you tossed >100k in the bank is going to be more motivated to keep you happy so you continue to let them play with your money.

Banks are not likely to offer even the $1:$1 that you'd get in a secured card agreement when doing it this way. It's just as impractical, and even less efficient.

This option wouldn't even be a "Plan B", it would be a last resort, dead last, after even a secured card if I NEEDED to rebuild credit and there was NO other way.

Re: Do deposits help in getting approved?

Anonymous — Tue, 05 May 2020 22:42:01 GMT

@coldfusion wrote:
@M_Smart007 wrote:
IMHO, The only time it swayed a CU for me, Is when I had large direct deposits going into Pentagon Federal,
and it totalled over $100K .. then they gave in. I doubt any bank or CU would be swayed by a few grand.

For BoA or Chase, it would probably take a Million
At $1 million the financial advisors at the local BoA financial center(s) will make sure you know each other even if you have a self-managed portfolio. $1 million at Chase barely gets you above peon class, you start to get interesting at $2 million and $10 million makes you fairly special.

Well, at least I know where my money would go if I had to choose between the two.

Re: Do deposits help in getting approved?

wasCB14 — Tue, 05 May 2020 22:44:06 GMT

I had something like $10k at Chase which probably helped me get a $600 Freedom with no credit history. That was before their spaghetti logic made me a VIP due to the by-then-closed Bear Stearns account I'd had as a minor.

Re: Do deposits help in getting approved?

Anonymous — Wed, 06 May 2020 13:47:53 GMT

@Anonymous wrote:
@coldfusion wrote:
@M_Smart007 wrote:
IMHO, The only time it swayed a CU for me, Is when I had large direct deposits going into Pentagon Federal,
and it totalled over $100K .. then they gave in. I doubt any bank or CU would be swayed by a few grand.

For BoA or Chase, it would probably take a Million
At $1 million the financial advisors at the local BoA financial center(s) will make sure you know each other even if you have a self-managed portfolio. $1 million at Chase barely gets you above peon class, you start to get interesting at $2 million and $10 million makes you fairly special.
Well, at least I know where my money would go if I had to choose between the two.

@Anonymous I just reviewed my history with Chase and its as follows:

10/17 - Opened Total Checking account for the $200 bonus. Deposited the $1,500 required minimum and directed a portion of my income to the account. After two weeks and with the $500 monthly minimum in Direct Deposit requirement satisfied I withdrew the initial $1,500. The SUB was paid a few days after I met the $500 threshold.

12/17 - Opened Chase Savings for $150 bonus by depositing $10,200 for 90 days (required minimum is $10K).

12/17 - Received my first and only online pre-qualification for the Slate, Freedom and Freedom Unlimited cards. Applied for the Freedom in-branch and approved with a $4,000 limit.

2/18 - Cold apped for the Amazon Prime Rewards card and approved despite being 8/24 at the time. ( I don't recall if the Amazon card was included in the 5/24 Rule back then). Approved for $6,000.

3/18 - Withdrew the original $10,200 from Savings after getting the $150 bonus and set up an automatic transfer from Checking for $25 monthly to avoid the account maintenance fee.

7/18 - Opened Chase You Invest account and seeded it with 10 shares of Amazon stock worth about $12,000.

8/18 - Opened Chase Total Business Checking with a $2,000 deposit.

12/18 - Received in-branch pre-approval for all credit cards offered by Chase. Applied in-branch and approved for the Sapphire Reserve with a $35,000 credit limit while at 16/24.

8/19 - Closed Savings & Total Business Checking accounts; transferred assets from You Invest to a Merrill Edge account. Only depository account open is Total Checking with the minimum DD of $500 going in each month.

I say all of that to show that its possible to get approved for Chase credit cards if you establish a depository relationship. Although I rarely used the Savings and Total Business Checking accounts, I used the Total Checking heavily and purposely passed 5-digit deposits through it a few times. Since ACH transfers from Chase are free (unlike the $3 charged by BofA), I would deposit the amounts there first, then route them to where I intended them to go. I'll finally be below 5/24 later this month and I intend to apply for the Freedom Unlimited as soon as that occurs.

Re: Do deposits help in getting approved?

Anonymous — Wed, 06 May 2020 16:05:02 GMT

It helped me recently with amex. I put 300k with them and when I tried for a credit increase on the everyday card they approved me for a 60k limit. Seems like when you get into 6 figures they start to notice. 7 figures and you could probably get what you want within reason

Re: Do deposits help in getting approved?

Anonymous — Wed, 06 May 2020 17:34:37 GMT

@Anonymous wrote:
Hello just a general question for the community and so I can get DPs.

If you make a large deposit into a saving or checking account, and just keep it there. Does that improve your chances of getting approved for a credit card from that particular financial institution? Especially when it comes to denials of DTI?

I'm sorry if this seems like a silly question, just would like to know.

And this really is the crux of the question, because I don't think anything will overide your DTI issue. You can either afford it or you can't, having $2K in the bank isn't going to tell them that you can manage a $10K CL on a CC if your income doesn't support it.

You'd be better served by using that Money to pay down on that debt that keeps your DTI too high.

Re: Do deposits help in getting approved?

Anonymous — Wed, 06 May 2020 17:41:16 GMT

@Anonymous wrote:
@Anonymous wrote:
Hello just a general question for the community and so I can get DPs.

If you make a large deposit into a saving or checking account, and just keep it there. Does that improve your chances of getting approved for a credit card from that particular financial institution? Especially when it comes to denials of DTI?

I'm sorry if this seems like a silly question, just would like to know.
And this really is the crux of the question, because I don't think anything will overide your DTI issue. You can either afford it or you can't, having $2K in the bank isn't going to tell them that you can manage a $10K CL on a CC if your income doesn't support it.

You'd be better served by using that Money to pay down on that debt that keeps your DTI too high.

I mean you have a point, but what if those debts were student loans that we were talking about. Mines aren't necessarily high either compared to people take on 100k worth of student loans.

Kind of felt a little bit hurt that you think I have massive debt or something haha. I ain't that poor!

Re: Do deposits help in getting approved?

notmyrealname23 — Thu, 07 May 2020 17:49:23 GMT

Data Point: I managed an estate and living trust as the death trustee for a couple of years while we moved through probate (TL;DR: my friend screwed up his trust, because avoiding probate is why you have trusts). I've also had retirement accounts and 529 education accounts with Fidelity since the 1990's.

As part of asset consolidation during 2018-2019 I moved everything into new Fidelity accounts that were reporting taxes in the EIN of the trust, but I had control of the funds (while reporting back to the beneficiaries, the probate court and the trust lawyer). For the record, Fidelity was awesome, 10/10, five stars, would totally use them again for this. This estate was big enough that the portion that moved through Fidelity (some was real estate, some got taken through POD accounts) was in six digits.

So in March 2019, about 2 months post-chapter 13 final discharge, Fidelity sent me a mailer for the Fidelity Rewards Visa with a $150 SUB (they DO occasionally do SUBs). At the time I had secured cards with OpenSky (pre-discharge and OK'ed with court, $500), Discover ($500) and my credit union ($500), and unsecured Platinum with Capital One ($3000 with a $500 boost if I paid for 6 months) and a not great FICO score in the mid-600s. I figured "why the hell not", even though other account applications I ended up bounced on... early 2019 is "credit rebuild and see what I can get". I was assuming the good cards wouldn't show up until after the Chapter 13 cleared in 2021, but secured and rebuilder cards were going to be fine for 24 months, and might as well see what some banks thought of me.

Approved, $11,500.

I have to think that given the huge disparity between the amount I was approved for and the Capital One account that my Fidelity accounts had SOMETHING to do with it.

Re: Do deposits help in getting approved?

Anonymous — Wed, 06 May 2020 18:38:34 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Hello just a general question for the community and so I can get DPs.

If you make a large deposit into a saving or checking account, and just keep it there. Does that improve your chances of getting approved for a credit card from that particular financial institution? Especially when it comes to denials of DTI?

I'm sorry if this seems like a silly question, just would like to know.
And this really is the crux of the question, because I don't think anything will overide your DTI issue. You can either afford it or you can't, having $2K in the bank isn't going to tell them that you can manage a $10K CL on a CC if your income doesn't support it.

You'd be better served by using that Money to pay down on that debt that keeps your DTI too high.
I mean you have a point, but what if those debts were student loans that we were talking about. Mines aren't necessarily high either compared to people take on 100k worth of student loans.

Kind of felt a little bit hurt that you think I have massive debt or something haha. I ain't that poor!

This isn't personal, it's Business. I'm just making a statement of how the Bank is likely to see things. I don't have any experience/knowledge with Student debt, so I cannot comment there. But if DTI is a constant thorn in terms of denials, the only way to circumvent that issue is to resolve it. The only known ways of doing that are paying down debt or increasing Income.

Re: Do deposits help in getting approved?

Mdg1307 — Wed, 06 May 2020 19:32:11 GMT

I've been pondering the same thing. My credit is currently rebuilding from a bunch of collections and charge offs from 4 years ago. So far all collections have been removed via PFD, and 2 charge offs as well. Still I'm only 550 across the board.
I was thinking if I put 500k into a bank or cu could they overlook my score and approve a card?

i currently only have an Amex optima.

Re: Do deposits help in getting approved?

notmyrealname23 — Wed, 06 May 2020 19:37:34 GMT

@Mdg1307 wrote:
I've been pondering the same thing. My credit is currently rebuilding from a bunch of collections and charge offs from 4 years ago. So far all collections have been removed via PFD, and 2 charge offs as well. Still I'm only 550 across the board.
I was thinking if I put 500k into a bank or cu could they overlook my score and approve a card?
i currently only have an Amex optima.

If you have 500k that is lying around, why not put a few thousand of that into secured cards, and improve scores via a payment record on secured cards? Some CUs will let you do secured cards against bank deposit accounts or CDs that draw interest. Discover doesn't really do that, but their cards do allow for rewards.

Re: Do deposits help in getting approved?

Gmood1 — Wed, 06 May 2020 19:48:21 GMT

In most cases, it doesn't matter.

Because if you show a track record of not paying your bills and they can see you have the money to pay them.

They're still going to deny you.

You have multimillionaires that can't get unsecured bank loans. lol

Sound ridiculous, but it is true.

Cash use to be king back in the day. These days good credit is king!

Having a high income or disposable income doesn't qualify you as a dependable payer or someone that can manage their bills.

Re: Do deposits help in getting approved?

Mdg1307 — Thu, 07 May 2020 00:36:30 GMT

@notmyrealname23 wrote:
@Mdg1307 wrote:
I've been pondering the same thing. My credit is currently rebuilding from a bunch of collections and charge offs from 4 years ago. So far all collections have been removed via PFD, and 2 charge offs as well. Still I'm only 550 across the board.
I was thinking if I put 500k into a bank or cu could they overlook my score and approve a card?
i currently only have an Amex optima.

If you have 500k that is lying around, why not put a few thousand of that into secured cards, and improve scores via a payment record on secured cards? Some CUs will let you do secured cards against bank deposit accounts or CDs that draw interest. Discover doesn't really do that, but their cards do allow for rewards.

Im looking to get more perks type of cards. Under non covid lockdown times, I travel a lot for both biz and pleasure, also dine out a few days a week...would like cards like Amex plat/gold, chase csr/csp...or similar from other bank/cu offerings

Re: Do deposits help in getting approved?

imaximous — Thu, 07 May 2020 01:14:54 GMT

Deposits did help me with BofA.

I've had a personal checking account with them for a while. Maybe more than 10 years, but can't remember now. The account was used mostly to put some money away and pay for our vacations, gifts, etc. There was never a lot of money in it, but it was active.

Once I started requesting CLIs on my 2 cards, I was able to get them up to $48k and $20.9k. After that, I'd just get denial letters and the most common reason was related to deposit balances with BofA or affiliates -- something along those lines. No CLIs for maybe a year or more.

I also got denied a business card with them.

I decided to use the checking account for more stuff in the past few months. DW moved her direct deposit there, and I started to dump a bunch of money from my biz and hit Plat Honors pretty quickly. Then, I opened a biz checking account and did the same to become Plat Honors. At that point, I applied for a biz card and got approved for $20k. Three weeks later, I tried my luck again and applied for a second biz card, which got approved for $8k. BofA used the first HP to approve the second card.

I also requested a CLI to $100k on my PR card, but I got bumped from $48k to $68k. Still a decent amount.

My exposure went from $68.9k to $116.9k and 2 additional cards within a month or two of hitting Preferred Rewards. Before that, I was getting denied left and right.

I also noticed BofA raised my mobile deposit limit from $10k to $75k per month.

Anyway, you don't need to have millions in the bank to get some love.