topic Re: Banking relationship before asking for a CC in Credit Cards

Banking relationship before asking for a CC

Anonymous — Sat, 06 Feb 2021 21:59:59 GMT

What is your thoughts on starting a bank account with BBVA, BoA, Chase, Amex, Capital One...eta with a small savings account (perhaps a checking) and letting it age over the course of 6 months to a year or more before going to them and asking for a CC?

As I ask this, I do have 2 accounts (BOA and AMEX) that I deposit a small amount into with direct deposit. It is savings anyway.

Would it be good to open another couple for when I am ready to ask for a card I already have a relationship with them?

I am holding for a year most likely and so will have time on both to age.

Thoughts?

Re: Banking relationship before asking for a CC

FinStar — Sat, 06 Feb 2021 22:18:00 GMT

As long as you keep in mind that nominal or trivial deposits aren't a sure way or guarantees for a CC product.

In the grand scheme of things, it doesn't hurt having said deposit (DDA/TDA) accounts if you eventually wish to expand the relationship, but it isn't going to work with AmEx or Capital One, for example.

Re: Banking relationship before asking for a CC

Aim_High — Sun, 07 Feb 2021 00:04:17 GMT

@FinStar wrote:
As long as you keep in mind that nominal or trivial deposits aren't a sure way or guarantees for a CC product.
In the grand scheme of things, it doesn't hurt having said deposit (DDA/TDA) accounts if you eventually wish to expand the relationship, but it isn't going to work with AmEx or Capital One, for example.

Welcome to My Fico Forums, @Anonymous.

Great advice from @FinStar.

Some on the forums believe that deposit relationships make no difference at all, unless you're talking huge six or seven figures balances. Personally, I believe they can matter with a few caveats. I think it depends on your credit profile, how you go about the process, and your expectations.

Don't bother with a token deposit and letting it sit. It will probably work better with most lenders if they see your direct deposits and regular account activity. Also, if any loan products or investment products they offer are competitive, by all means consider them as a part of demonstrating a banking commitment. Finally, if you're not a wealth management client with those huge balances, don't expect them to work wonders. They probably won't counterbalance lots of derogatories, low FICO scores, or questionable Debt-to-Income scenarios. Account relationships may work better as a tie-breaking factor if your profile is on the edge for approval, to help you squeak out a little higher credit limit, or sometimes to help bypass anti-churning rules like at Bank of America where account holders are allowed 7/12 new accounts versus 3/12 for non-account holders.

Sometimes, having an account relationship may put you on the bank's marketing radar to target for pre-screened offers of credit. That may be helpful in getting an approval.

If you already have a solid profile, a banking relationship might be unnecessary. But, the way I look at it is that they can also never hurt if you want to do everything possible to increase your approval odds.

Re: Banking relationship before asking for a CC

Credit12Fico — Sun, 07 Feb 2021 02:03:00 GMT

To be clear, because I know it seems to be a trigger topic in these parts, one does not need a bank account to get an account with any of the major lenders and I agree with @Aim_High on this his/her points.

With that said, it never hurts. One of the things I find, is that opening a bank account tends to help you avoid issues of "Identity verification" when you are applying for the credit card with that bank. Also, many banks will soft pull you at bank account opening time, and try to pre-qualify you for a credit card. Sometimes the banker will give you a credit card offer right after you open your bank account if you open in branch. Othertimes you will get the credit card offer during the online application for the checking account.

Managing and keeping an eye on multiple bank accounts is quite trivial in this day and age with the aggregator apps, so if that's what you want to do, go ahead. As I mentioned earlier, when you enter the banking system as a customer, you eventually start seeing credit card offers appearing in your mail or your online login with many of the banks like Chase, Wells, US Bank, BOA, PNC, etc.

Re: Banking relationship before asking for a CC

Anonymous — Sun, 07 Feb 2021 02:04:47 GMT

@Aim_High wrote:

Don't bother with a token deposit and letting it sit. It will probably work better with most lenders if they see your direct deposits and regular account activity. Also, if any loan products or investment products they offer are competitive, by all means consider them as a part of demonstrating a banking commitment.

While I am in "it doesn't matter except for huge amounts" camp, as @Aim_High says, if the banking product is competitive in some way, then it MIGHT be worth a try (and what is obvious, but not mentioned, be "good" with the bank account: having an account may or may not help with cards, but having negatives on the banking side certainly won't help with getting credit cards!)

And there is the problem! As said, the amounts shouldn't be nominal, and if the account ISN'T competitive, which is certainly the case with many big lenders, you are in effect paying with no means of knowing if and how much your chances are improved.

Re: Banking relationship before asking for a CC

Credit12Fico — Sun, 07 Feb 2021 02:05:43 GMT

I still am in the camp of you will start seeing CC offers showing up in your peripheral vision with many of the banks after you open your bank account with them. And the bank account helps to avoid identity verification issues.

Re: Banking relationship before asking for a CC

Aim_High — Sun, 07 Feb 2021 03:19:12 GMT

@Credit12Fico wrote:
To be clear, because I know it seems to be a trigger topic in these parts, one does not need a bank account to get an account with any of the major lenders and I agree with @Aim_High on this his/her points.

Yes, definitely one of those hotly debated topics for which there isn't ever going to be a firm and definitive answer. We just don't know all the data each lender considers or how they weight it. YMMV.

I think it's agreed that having deposits accounts is not a prerequisite to get approved for most of the mainstream major bank cards. However, in some cases, it may help.

Probably my best example is the Bank of America Premium Rewards card, of which there is a history here of denied applications without at least a checking account. That even applied for members who had exemplary credit profiles. I was advised by quite a few members that it would be a good idea to have a checking, savings, and maybe even deposits with Merrill Lynch to help an approval. I did all that and was approved.

Of course, the flip side to every approval or denial is the absense of a counterbalancing data point showing the outcome without any of those accounts, or only a checking account but the same profile. But, in my opinion, I wanted the card and it didn't hurt. I was even able to get not only the SUB on the Premium Rewards card, but also SUBs on the deposit accounts and Merrill Lynch account.

Another prime example is the US Bank Altitude Reserve card, which is restricted to current US Bank customers but they include other credit card customers without deposit accounts in their definition for that one. SUB is "... 50K points worth up to $750 in travel."

BBVA has their Premium Select card which isn't open to online applications. You apparently must be logged into online banking or go through a customer service representative to apply. I'm pretty sure this one is targeted to banking customers, and it shows up as their card for their Private Banking Credit Solutions customers. Like the BofA Premium Rewards card, it has a SUB worth $500, so I imagine the reason all three banks appear to screen for relationships on their highest level cards is to mitigate SUB churning.

I'm not even counting all the other wealth management or private banking targeted cards, some of which you may not even be able to find easily online and for which you must be invited to apply. Obviously, these require large deposit accounts. While the Chase/JP Morgan Reserve is the best known version, many other smaller banks have wealth management cards.

For most everyday cards, it's probably more of a tie-breaker or an opportunity to open the door to those targeted marketing offers.

Re: Banking relationship before asking for a CC

Aim_High — Sun, 07 Feb 2021 03:24:44 GMT

@Anonymous wrote:
@Aim_High wrote:
... if any loan products or investment products they offer are competitive, by all means consider them as a part of demonstrating a banking commitment.
While I am in "it doesn't matter except for huge amounts" camp, as @Aim_High says, if the banking product is competitive in some way, then it MIGHT be worth a try ... if the account ISN'T competitive, which is certainly the case with many big lenders, you are in effect paying with no means of knowing if and how much your chances are improved.

Very true and why I included "competitive."

One way around this for the short term is to look for SUB opportunities that might help defray the lost opportunity cost versus other banking alternatives. In my Bank of America example above, between the SUBs on deposit accounts, credit card, and investment accounts, I netted $1,175 in bonuses. A lot of banks are offering these if you keep your eyes open.

Re: Banking relationship before asking for a CC

M_Smart007 — Sun, 07 Feb 2021 06:55:17 GMT

@Anonymous wrote:
What is your thoughts on starting a bank account with BBVA, BoA, Chase, Amex, Capital One...eta with a small savings account (perhaps a checking) and letting it age over the course of 6 months to a year or more before going to them and asking for a CC?

As I ask this, I do have 2 accounts (BOA and AMEX) that I deposit a small amount into with direct deposit. It is savings anyway.

Would it be good to open another couple for when I am ready to ask for a card I already have a relationship with them?

I am holding for a year most likely and so will have time on both to age.

Thoughts?

BoA is probably the one that you could gain by having a banking relationship.

Throwing $20 in a account usually does not mean much, now $100K might get the wheels turning.

Re: Banking relationship before asking for a CC

K-in-Boston — Sun, 07 Feb 2021 08:18:46 GMT

I would definitely echo that in most cases, that subjective term "relationship" makes zero difference on whether an account will be approved. Bank of America Premium Rewards and JPM Reserve are two examples often cited, but moving $100,000+ or $10,000,000+ respectively would more objectively qualify as a "relationship" than "Hey, Chase, I put $50 in my savings account. We're in a relationship. Now you have 2 trillion, 687 billion, and fifty dollars in assets!!!"

Re: Banking relationship before asking for a CC

AverageJoesCredit — Sun, 07 Feb 2021 12:59:00 GMT

@K-in-Boston wrote:
I would definitely echo that in most cases, that subjective term "relationship" makes zero difference on whether an account will be approved. Bank of America Premium Rewards and JPM Reserve are two examples often cited, but moving $100,000+ or $10,000,000+ respectively would more objectively qualify as a "relationship" than "Hey, Chase, I put $50 in my savings account. We're in a relationship. Now you have 2 trillion, 687 billion, and fifty dollars in assets!!!"

Lol, so you're saying my $2 in my Navy checking means squat?😄

Re: Banking relationship before asking for a CC

Anonymous — Sun, 07 Feb 2021 14:26:48 GMT

@AverageJoesCredit wrote:
Lol, so you're saying my $2 in my Navy checking means squat?😄

Well, it may not help you with getting more credit cards, but it certainly gives you big-depositor "Do you know who I am????" rights

Re: Banking relationship before asking for a CC

AverageJoesCredit — Sun, 07 Feb 2021 14:42:52 GMT

@Anonymous wrote:
@AverageJoesCredit wrote:
Lol, so you're saying my $2 in my Navy checking means squat?😄
Well, it may not help you with getting more credit cards, but it certainly gives you big-depositor "Do you know who I am????" rights

Lol,

Navy $2= $37k

Chase $2 =$524 ]😁

Re: Banking relationship before asking for a CC

Remedios — Sun, 07 Feb 2021 16:24:11 GMT

@Anonymous wrote:
What is your thoughts on starting a bank account with BBVA, BoA, Chase, Amex, Capital One...eta with a small savings account (perhaps a checking) and letting it age over the course of 6 months to a year or more before going to them and asking for a CC?

As I ask this, I do have 2 accounts (BOA and AMEX) that I deposit a small amount into with direct deposit. It is savings anyway.

Would it be good to open another couple for when I am ready to ask for a card I already have a relationship with them?

I am holding for a year most likely and so will have time on both to age.

Thoughts?

@Anonymous This topic comes up often enough, and we all do brain copypasta from the previous 99 debates.

Banks don't relate to individuals, but they might relate to the money individual has a potential to bring in.

Stashing a few hundred here and there is not going to overwhelm them.

Additionally, savings accounts don't "age". They just look abandoned unless there is a constant influx of money coming in.

Instead of opening multiple accounts with lenders you want CCs from, you'd be better off addressing and working on the negatives that are keeping your scores down, since that's the reason you're having to resort to this.

Re: Banking relationship before asking for a CC

Anonymous — Sun, 07 Feb 2021 16:31:29 GMT

@Remedios and everyone.

Thanks for your input, I have CPC status now and they have approved me for my car back in Oct before I realized how bad it was.

I am not sure is having a relationship with them will do any good but I am hopping it will push me over the fence if needed by showing them that I can deposit regularly even if it is a low dollar amount each paycheck.

As mentioned above keeping track of multiple accounts could be hard unless you set them up and forget them as I have done and let them sit. IDK if it will help with BoA or AMEX but we shall see and if I have to call the reconsider line it allows me to point to that account and say I have been regularly depositing funds, as well as keeping my utilization below 10%.

Data points on this may be hard to come by, but thanks to all for your responses.

Re: Banking relationship before asking for a CC

Remedios — Sun, 07 Feb 2021 16:50:37 GMT

Well, I have a CPC story ...

My only denial ever came from Chase while I was CPC.

As far as money goes, I think it's uncouth to drop figures, but to give you an idea, there was money from sales of two homes, two trust funds, investments, one mortgage paid off in under a year etc.

Had I been familiar with a concept of Karen at that time, I could have sent banker to go make me a sammich, and he probably would.

Credit card peeps were all "Shoo shoo, go get more experience, come back later"

I did, and since their UW conditions have been fulfilled, I was approved for two cards under 30 days (that was a bit stupid on my end).

Two departments, neither one will be stepping on anyone toes over mere mortals.

If you meet UW criteria, you don't need a penny in DDAs with Chase.

Easiest way to find out is to apply. If you get approved, yay. If you don't, AA letter will spell out why.

Good luck, and I hope it works out for you.

Re: Banking relationship before asking for a CC

Namaste7 — Sun, 07 Feb 2021 17:08:16 GMT

A higher credit score (740+) and mature credit profile will have a greater impact on credit approval compared to immaterial bank deposit balances (i.e., amounts below the bank's wealth management criteria).

YMMV, but a bank relationship may influence targeted offers (BTs or new CCs) and auto-CLIs. BofA and Chase may be more reactive to your overall banking profile when extending offers compared to Amex or Capital One. On the otherhand, I found AMEX and Capital One to be more sensitive to usage compared to BofA for CLI requests.

Re: Banking relationship before asking for a CC

Anonymous — Mon, 29 Mar 2021 11:02:05 GMT

*****update****

Thanks to everyone that replied, your insite was valuable.

Due to chase 5/24 rule I am out till Oct 2023, but my CPC banker said he could "try and we would see" I shall wait anyway as it really not needed.

Was playing on AMEX and they pre-qualified me for Hilton AMEX so I decided WTH and applied. I had to call in due to just moving but they approved me for $1k with a 666 experian score, no lates in 24 months, $11k in 6 CC's, 2 auto loans......and 2 collections 2+ years old.

Not sure if the bank account helps or not, I think not as the person I talked to was not able to verify me based on that account.

Re: Banking relationship before asking for a CC

Remedios — Mon, 29 Mar 2021 14:40:06 GMT

@Anonymous Thanks for the update, and congrats on your new card

Feel free to start an approval thread if you wish to do so.