topic Re: How Important is Banking Relationship? in Credit Cards

How Important is Banking Relationship?

Anonymous — Tue, 22 Dec 2020 03:07:02 GMT

Hi everyone,

I plan on going on an app spree somewhat soon. Maybe in January. I'm considering a variety of cards, one of which is the BBVA Clearpoints and another which is the Capital One Walmart card. I've actually opened a checking account with both BBVA and Capital One this year as they have very lucrative sign on bonuses. I was wondering if having an account with them will be factored into their decision in any significant manner.

While I have these accounts, I am currently routing deposits to them, but I do not use them much otherwise. Sometimes I will pay my cards off with cash in those accounts. Otherwise I simply transfer funds out to my Chime savings account. So considering I have, but don't heavily use these accounts, will that also factor into approval considerations?

tl;dr Does banking relationship matter with approval to any significant degree, and does the extent of usage on those bank accounts matter as well?

Re: How Important is Banking Relationship?

Anonymous — Tue, 22 Dec 2020 03:12:52 GMT

This question has come up a lot lately and has really been being asked for years. There really isn't any definitive answer, as no one really knows. All individuals can do is speculate. For every person that says a relationship "matters" you'll find one that says it doesn't... it's really all a product of personal experiences. What I would say is that under most circumstances it can't hurt, so no harm in hoping that it helps your profile in some way. I would say that the chances of the relationship mattering would be quite proportional to the length of said relationship... so someone that has banked somewhere for 20 years will likely be more meaningful than someone that's got less than a year under their belt.

Re: How Important is Banking Relationship?

Kforce — Tue, 22 Dec 2020 03:26:22 GMT

@Anonymous wrote:
This question has come up a lot lately and has really been being asked for years. There really isn't any definitive answer, as no one really knows. (+100) All individuals can do is speculate. For every person that says a relationship "matters" you'll find one that says it doesn't... it's really all a product of personal experiences. ( I have be approved for numerous cards that the community said needed a relationship, with out one. I however have a long, strong profile, low utilization and never any inquiries.) What I would say is that under most circumstances it can't hurt, so no harm in hoping that it helps your profile in some way. I would say that the chances of the relationship mattering would be quite proportional to the length of said relationship... so someone that has banked somewhere for 20 years will likely be more meaningful than someone that's got less than a year under their belt.

Re: How Important is Banking Relationship?

Meanmchine — Tue, 22 Dec 2020 04:56:42 GMT

I cant prove it but opened a couple Chase accounts and a year later was off their BL

Re: How Important is Banking Relationship?

Credit12Fico — Tue, 22 Dec 2020 05:45:53 GMT

@Anonymous wrote:
This question has come up a lot lately and has really been being asked for years. There really isn't any definitive answer, as no one really knows. All individuals can do is speculate. For every person that says a relationship "matters" you'll find one that says it doesn't... it's really all a product of personal experiences. What I would say is that under most circumstances it can't hurt, so no harm in hoping that it helps your profile in some way. I would say that the chances of the relationship mattering would be quite proportional to the length of said relationship... so someone that has banked somewhere for 20 years will likely be more meaningful than someone that's got less than a year under their belt.

I have come across rejection letters posted online where a reason listed is "No deposit accounts" from BOA and "Low balances in deposit account" from Wells Fargo as one of the reasons along with other reasons for denial.

For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter.

You don't need to have a prior relationship if you have great credit, but certain banks are in fact considering your existing relationship to give them a reason to approve you when they might not otherwise. Especially so for people with weaker credit history. A bank can use your deposit account to determine whether you have income or not.

I remember when apping the Fidelity card, I was specifically told in the application that my investment balances would be sent to Elan to be considered in the application process for the credit card.

The well known banks that consider the existing relationships are BOA, Chase, WF, US Bank, PNC. You don't need a relationship to get a card from them, but it sure helps your application when you do if they are not otherwise comfortable approving it with those particular banks. If you are feeling like your credit history is weak, open the checking account before applying for credit. Often you can get a sign up bonus on both the checking account and the credit hard. Checking accounts can be opened in a matter of minutes from a mobile app these days.

Re: How Important is Banking Relationship?

Kforce — Tue, 22 Dec 2020 18:56:30 GMT

@Credit12Fico wrote:
For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter.

I have had cards with Fidelity, Wells Fargo BoA and many others with no previous or current relationship.

It is just another bogus reason because they have to put something on the denial.

They just don't like your profile.

I have seen similar bogus reasons on fico scoring models.

To many new inquiries, and or accounts and I haven't received any in 3 or 4 years.

I just shake my head and smile at the nonsense.

You can't believe everything from denial letters or any scoring service.

For every customer that they print that denial reason, someone with no relationship got approved. (Just my opinion)

Re: How Important is Banking Relationship?

Remedios — Tue, 22 Dec 2020 19:31:14 GMT

Here I am, in my corner waiting for someone to announce they got approved with "I don't bank with this lender, that must be why I got approved!"

Re: How Important is Banking Relationship?

Kforce — Tue, 22 Dec 2020 20:37:02 GMT

@Remedios wrote:
Here I am, in my corner waiting for someone to announce they got approved with "I don't bank with this lender, that must be why I got approved!"

Just as likely and equally important.

Re: How Important is Banking Relationship?

HeavenOhio — Tue, 22 Dec 2020 21:35:28 GMT

I recall evidence that it helps with Navy Federal, US Bank, and maybe Bank of America.

Re: How Important is Banking Relationship?

Anonymous — Tue, 22 Dec 2020 21:41:09 GMT

@Credit12Fico wrote:
I have come across rejection letters posted online where a reason listed is "No deposit accounts" from BOA and "Low balances in deposit account" from Wells Fargo as one of the reasons along with other reasons for denial.

For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter.

I don't doubt that, but I agree with kforce above that those are just fluff denial reasons when the "real" reason is that overall profile is too weak. There are certainly plenty of people out there that have obtained BoA, WF etc. products without an issue without having any prior relationship. If you're talking someone that's on the cusp and feel that the banking relationship would tip the scales in an otherwise 50/50 outcome probability, my advice would be different. I wouldn't suggest opening an account prior in order to reduce the chances of denial, I'd suggest taking the necessary steps prior to strengthen one's overall credit profile to increase approval chances.

Re: How Important is Banking Relationship?

Credit12Fico — Tue, 22 Dec 2020 21:55:06 GMT

@Anonymous wrote:
@Credit12Fico wrote:
I have come across rejection letters posted online where a reason listed is "No deposit accounts" from BOA and "Low balances in deposit account" from Wells Fargo as one of the reasons along with other reasons for denial.

For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter.

I don't doubt that, but I agree with kforce above that those are just fluff denial reasons when the "real" reason is that overall profile is too weak. There are certainly plenty of people out there that have obtained BoA, WF etc. products without an issue without having any prior relationship. If you're talking someone that's on the cusp and feel that the banking relationship would tip the scales in an otherwise 50/50 outcome probability, my advice would be different. I wouldn't suggest opening an account prior in order to reduce the chances of denial, I'd suggest taking the necessary steps prior to strengthen one's overall credit profile to increase approval chances.

I thought I was pretty clear in my post that you don't need a relationship to get cards from those banks but other than that, I agree. Ultimately it seems we have different tolerances. I don't know why anyone would not open a checking account that they were being paid to open. If you were credit seeking, sign up bonus on the checking account seems like it would be of benefit. If you don't care about the bonus, sign up, get it , and donate it to someone in need.

Re: How Important is Banking Relationship?

Kforce — Tue, 22 Dec 2020 21:47:32 GMT

@Anonymous wrote:
@Credit12Fico wrote:
I have come across rejection letters posted online where a reason listed is "No deposit accounts" from BOA and "Low balances in deposit account" from Wells Fargo as one of the reasons along with other reasons for denial.

For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter.

I don't doubt that, but I agree with kforce above that those are just fluff denial reasons when the "real" reason is that overall profile is too weak. There are certainly plenty of people out there that have obtained BoA, WF etc. products without an issue without having any prior relationship. If you're talking someone that's on the cusp and feel that the banking relationship would tip the scales in an otherwise 50/50 outcome probability, my advice would be different. I wouldn't suggest opening an account prior in order to reduce the chances of denial, I'd suggest taking the necessary steps prior to strengthen one's overall credit profile to increase approval chances.

+100

Expressed much clearer than my post.

Re: How Important is Banking Relationship?

Anonymous — Tue, 22 Dec 2020 22:02:16 GMT

@Credit12Fico wrote:
I don't know why anyone would not open a checking account that they were being paid to open.

Maybe because they already have a checking account or multiple checking accounts that they're currently happy with and don't want to bother with another?

You could say the same statement quoted above about any CC that comes with a SUB and of course [most] people don't just keep opening them.

Re: How Important is Banking Relationship?

Remedios — Tue, 22 Dec 2020 22:16:03 GMT

Or maybe because chasing checking SUBs isn't without repercussions down the road once person arrives at "You over did it"

Plenty of people on this forum have an issue or few with joining CUs (and some banks) because their Chex looks like my TU.

Or maybe because once you open one too may, EWS pullers realize all you're doing is opening accounts for subs, then abandoning them .

EWS report contains all deposits, all withdrawals, average daily balances, etc, and that's without mentioning negatives.

As far as what constitutes "one too many", that will vary from lender to lender, but inevitably , one will shoot their own foot. There is one thing banks don't like, and that's losing money. Sooner or later, those with most lucrative SUBs will place restrictions on DDAs just like they did with cards.

Id rather not burn bridges over trivial amounts.

Re: How Important is Banking Relationship?

MJ-san — Tue, 22 Dec 2020 22:38:08 GMT

I can attest to the fact that banking relationship matters to BofA. I don't know _how much_ though.

Because we have all our investments with Merrill, we qualify for their "Wealth Management" tier and that means my investment advisor has a banking specialist on her team who handles everything related to BofA. They have their own specialists in the credit card division and they do look at total balances when they make credit decisions.

Re: How Important is Banking Relationship?

Anonymous — Tue, 22 Dec 2020 23:13:57 GMT

@Remedios wrote:
Here I am, in my corner waiting for someone to announce they got approved with "I don't bank with this lender, that must be why I got approved!"

I have deposits with a few banks who won't give me their credit card on the oh-so-convenient grounds that I don't apply for one. And not even a denial letter. Pretty telling IMO.

Re: How Important is Banking Relationship?

Credit12Fico — Tue, 22 Dec 2020 23:41:50 GMT

@Anonymous wrote:
@Credit12Fico wrote:
I don't know why anyone would not open a checking account that they were being paid to open.

Maybe because they already have a checking account or multiple checking accounts that they're currently happy with and don't want to bother with another?

You could say the same statement quoted above about any CC that comes with a SUB and of course [most] people don't just keep opening them.

I think things are being taken slightly out of context here judging by the fact that you erased the rest of my post to quote this particular sentence.

Assuming you are someone in need of credit, it seems odd to turn down a handout from the checking account. The proposal was not to randomly open checking accounts. The proposal was if you had your eye on a card from one of those 5 banks, you might as well get their checking account. The credit card is managed in the same mobile app. It's all quite trivial.

But anyway that wasn't the motivation. It was simply that a banking relationship certainly does not hurt a credit card application (unless you overdraft or bounce checks), in fact you might even be paid to have the banking relationship so why not if the opportunity is there.

Re: How Important is Banking Relationship?

Anonymous — Tue, 22 Dec 2020 23:48:47 GMT

@Credit12Fico
Assuming you are someone in need of credit, it seems odd to turn down a handout from the checking account. The proposal was not to randomly open checking accounts. The proposal was if you had your eye on a card from one of those 5 banks, you might as well get their checking account. The credit card is managed in the same mobile app. It's all quite trivial.

But anyway that wasn't the motivation. It was simply that a banking relationship certainly does not hurt a credit card application (unless you overdraft or bounce checks), in fact you might even be paid to have the banking relationship so why not if the opportunity is there.

This makes sense to me

Re: How Important is Banking Relationship?

Remedios — Tue, 22 Dec 2020 23:53:36 GMT

There is no relationship!!!

Re: How Important is Banking Relationship?

Anonymous — Wed, 23 Dec 2020 00:28:42 GMT

@Credit12Fico wrote:

But anyway that wasn't the motivation. It was simply that a banking relationship certainly does not hurt a credit card application (unless you overdraft or bounce checks), in fact you might even be paid to have the banking relationship so why not if the opportunity is there.

Yes, but presumably opening a checking account just before apping for the credit card isn't going to do a whole lot, and, in theory, could hurt because it looks rather transparent. And, as others have implied, it's not really scalable. Enough of these "can't hurt" accounts can prevent me getting an account I might really want. Yes, might be a handful of lenders now, but as time goes on and we hear "relationship bank"

Also, IMO, "can't hurt" is too weak a justification for doing very much!