topic Re: U.S. Bank and Elan Financial Relationship in Credit Cards

U.S. Bank and Elan Financial Relationship

cws-21 — Tue, 13 Aug 2024 23:00:27 GMT

I understand that Elan Financial is a division of U.S. Bank, but I have a few related questions that folks may or may not be able to answer (or speculate about). As always, I appreciate all replies. Thank you in advance!

1. Does having a relationship with Elan Financial (e.g., Max Cash Preferred) mean that I have a relationship with U.S. Bank?

2. If yes for Question 1, would I have a closer relationship with U.S. Bank if I have a card like the Cash+ instead of the Max Cash Preferred?

3. Do some Max Cash Preferred versions provide U.S. Bank "Cash-back deals," or something similar, such as what are offered on the Altitude Go (probably Cash+ and others as well)?

Re: U.S. Bank and Elan Financial Relationship

TrapLine — Wed, 14 Aug 2024 02:04:34 GMT

No relationship with US Bank.

Over time I have both and Elan always strives to remain independent of their connection to US Bank. Reasoning, banks that contract with Elan Financial Services expect them to operate as the contracting bank's credit card services provider. They do not want US Bank as an interloper perceived or actual.

To make this ever more confusing, US Bank/Elan Card Services shares processing personnel, systems and credit card production.

Back to your question, a relationship with US Bank generally requires and actual relationship with US Bank. That could equal having some type of banking, credit, installment loans, mortgage loans and I thought they included investments. Potentially, the business side could serve as a door opener. Even though US Bank is not in all states, Myficoers have pushed the envelope and slid in under the door getting a relationship.

One form of credit US Bank requires (?) a relationship is their Personal Line of Credit (not to be confused with their Reserve Line of Credit).

There are other banks such as UMB, Bank of America/FIA, First National Bank of Omaha (FNBO) that also provides such services and so on that operate similar to US Bank. Mellon Bank also gets in the mix with Fidelity Investments. Likely there are more.

Re: U.S. Bank and Elan Financial Relationship

cws-21 — Wed, 14 Aug 2024 15:29:17 GMT

Thanks, @TrapLine. So, Max Cash Preferred = no relationship with U.S. Bank and Cash+ = relationship with U.S. Bank, right?

Re: U.S. Bank and Elan Financial Relationship

Anonymous — Wed, 14 Aug 2024 15:58:38 GMT

@cws-21 wrote:
Thanks, @TrapLine. So, Max Cash Preferred = no relationship with U.S. Bank and Cash+ = relationship with U.S. Bank, right?

It also depends on what you mean by "relationship" Certainly Cash+ makes you a US Bank customer as far as relationships go and Max Cash probably doesn't.

But.... let's say you burned Elan on the Max Cash, and enough time passed so the default/chargeoff fell off your credit report. As Elan is a wholly owned subsidiary of US Bank, the question is whether US Bank can see the default in Elan's records (i.e. just how well they seal things off, it all). If they can, maybe they would not give you a card because of "prior bad relationship"

Don't know if anyone here has had this experience. If not, anyone up for a long-term test (with a heavy hit to your score, at least in the short term!)

Re: U.S. Bank and Elan Financial Relationship

Kforce — Wed, 14 Aug 2024 16:11:34 GMT

@Anonymous wrote:
@cws-21 wrote:
Thanks, @TrapLine. So, Max Cash Preferred = no relationship with U.S. Bank and Cash+ = relationship with U.S. Bank, right?
It also depends on what you mean by "relationship" Certainly Cash+ makes you a US Bank customer as far as relationships go and Max Cash probably doesn't.

But.... let's say you burned Elan on the Max Cash, and enough time passed so the default/chargeoff fell off your credit report. As Elan is a wholly owned subsidiary of US Bank, the question is whether US Bank can see the default in Elan's records (i.e. just how well they seal things off, it all). If they can, maybe they would not give you a card because of "prior bad relationship"
Don't know if anyone here has had this experience. If not, anyone up for a long-term test (with a heavy hit to your score, at least in the short term!)

And, previously had a "Cash+" and closed it years ago.

They keep pushing me offer's for the card that requires a relationship.

Having an ex-relationship might count !

Have no interest in the card, not a good test case

Re: U.S. Bank and Elan Financial Relationship

cws-21 — Wed, 14 Aug 2024 17:38:13 GMT

Thank you, @Anonymous and @Kforce.

I have an Elan Max Cash Preferred and a U.S. Bank Altitude Go that I could product change to a Cash+. I am most likely closing one of the two cards and I am trying to decide which one would be best to keep. I know what many people will recommend ... just keep them both open given they have no annual fee. I have always opened cards when they made sense and closed cards when they no longer did so. For many years, my credit scores have been in the high 700s or low 800s so I probably won't fix what ain't broken.

So, I am debating between the Max Cash Preferred and Cash+. For the Max Cash Preferred, I like the "No required quarterly enrollment" as well as broader Entertainment and Recreation categories than found with the Cash+. For the Cash+, I like the better website, better app, relationship maintained with U.S. Bank, and U.S. Bank "Cash-back deals."

Does anyone have any thoughts that would help me make my decision? Which card would you keep if you were in my position and why would you keep it?

Re: U.S. Bank and Elan Financial Relationship

Bockrocker — Wed, 14 Aug 2024 20:24:15 GMT

U.S. Bank cards occasionally have access to Amazon Shop With Points deals like this.

Even though Elan is also a member of the shop with points club, I've never seen a deal posted for Elan cards (unlike Citi, Discover, Amex, Chase which are all pretty common/often). Although U.S. Bank just made the feature available last year so maybe it will become more common.

Re: U.S. Bank and Elan Financial Relationship

TrapLine — Wed, 14 Aug 2024 21:06:58 GMT

Like many things in the MyFico world I have learned there may be a "never say never" out there?

It has been there past to keep things separate ... yet they share personnel, processing systems and credit card production so one may certainly wonder???

Also, posters mentioned past relationships that are closed or were bad. How does US Bank view such a past happening? Good question.

Over many many years I have had US Bank and Elan Card services. For my profile, Elan has always given me higher starting CLs every time. Found US Bank more conservative with my profile than Elan Financial Services so I get the feeling of a separation. However, things have been very fluid in the credit world (unlike the days gone by) so change is possible.

As I mentioned earlier in another post, Elan Financial Services is available to non US Bank banks for the providing of credit card services and is not suppose to be interloping on the contracting bank's field of customers.

There are many other banks that offer similar services with similar restrictions. One would be quite surprised to see how many credit cards are issued by the private bank of the First National Bank of Omaha and, they have been doing it for many many years (very low key).

Re: U.S. Bank and Elan Financial Relationship

PullingMeSoftly — Wed, 14 Aug 2024 21:31:28 GMT

While the separation of Elan and USB gives the outward impression of separate entities rather than the reality of Elan being a subsidiary, it's interesting that the USB reps can see the Elan products we have. I've long wondered whether or not USB factors in my Fidelity card when determining max exposure. This is something I haven't been able to get an answer for from any rep. I don't think having an Elan product alone substantiates having a relationship with USB, but it certainly seems to factor into overall credit exposure when having products from both. Would love for this to be clarified/confirmed before I outright apply for the AR and risk getting denied for hitting max exposure.

As to the question of which of your cards to keep @cws-21 , you described the advantages of each quite well, and so the relative value of each would seem to be the deciding factor. You also acknowledge the common advice to just keep AF cards, but did you have a specific reason why you want to close one (I think I missed that)? Maybe less to manage?

Re: U.S. Bank and Elan Financial Relationship

cws-21 — Wed, 14 Aug 2024 21:47:05 GMT

@PullingMeSoftly wrote:
While the separation of Elan and USB gives the outward impression of separate entities rather than the reality of Elan being a subsidiary, it's interesting that the USB reps can see the Elan products we have. I've long wondered whether or not USB factors in my Fidelity card when determining max exposure. This is something I haven't been able to get an answer for from any rep. I don't think having an Elan product alone substantiates having a relationship with USB, but it certainly seems to factor into overall credit exposure when having products from both. Would love for this to be clarified/confirmed before I outright apply for the AR and risk getting denied for hitting max exposure.

As to the question of which of your cards to keep @cws-21 , you described the advantages of each quite well, and so the relative value of each would seem to be the deciding factor. You also acknowledge the common advice to just keep AF cards, but did you have a specific reason why you want to close one (I think I missed that)? Maybe less to manage?

Thanks for your take, @PullingMeSoftly. To answer your question, I prefer to only keep cards that have significant value for me (and have fewer cards to manage), which means, over the years, I have opened and closed many cards. I realize that it flies in the face of conventional wisdom here on myFICO, but it has always worked for me! I assume you would keep both? However, if you were only keeping one, which one would it be and why?

Re: U.S. Bank and Elan Financial Relationship

Anonymous — Wed, 14 Aug 2024 21:56:12 GMT

@cws-21 wrote:
Thank you, @Anonymous and @Kforce.

I have an Elan Max Cash Preferred and a U.S. Bank Altitude Go that I could product change to a Cash+. I am most likely closing one of the two cards and I am trying to decide which one would be best to keep. I know what many people will recommend ... just keep them both open given they have no annual fee ...
...
Does anyone have any thoughts that would help me make my decision? Which card would you keep if you were in my position and why would you keep it?

Don't know what I would do if I were you.

Being me I would keep the Elan Maxcash and PC the Go to a Cash+

Would give me 4 total dedicated 5% categories.

I would:

Use the Elan for Utilities and Phones for "set and forget"
Use the Cash+ to rotate catagories quarterly as may be needed.

Re: U.S. Bank and Elan Financial Relationship

unsungivy — Thu, 15 Aug 2024 11:21:27 GMT

Ok, so weird timing, but now my Equifax is showing my Elan cards as "US Bank" (as of this morning). They've always shown as Elan Financial before, and I don't have any US Bank relationship. Strange.

Re: U.S. Bank and Elan Financial Relationship

Anonymous — Thu, 15 Aug 2024 13:35:57 GMT

@unsungivy wrote:
Ok, so weird timing, but now my Equifax is showing my Elan cards as "US Bank" (as of this morning). They've always shown as Elan Financial before, and I don't have any US Bank relationship. Strange.

See this discussion Fidelity Visa Creditor Change - myFICO® Forums - 6778972

Re: U.S. Bank and Elan Financial Relationship

unsungivy — Thu, 15 Aug 2024 14:36:38 GMT

@Anonymous wrote:
@unsungivy wrote:
Ok, so weird timing, but now my Equifax is showing my Elan cards as "US Bank" (as of this morning). They've always shown as Elan Financial before, and I don't have any US Bank relationship. Strange.
See this discussion Fidelity Visa Creditor Change - myFICO® Forums - 6778972

Perfect, ty.

Re: U.S. Bank and Elan Financial Relationship

Owner — Tue, 26 Nov 2024 18:44:45 GMT

Question #1. No.

Elan Financial is the lending arm for many banks and credit Union thoughout the country. It's your personal lender or credit union that you need to have a relationship with. There is always some exceptions. If you already have 2 credit cards though your CU or Bank that uses Elan, then that would carry alot a weight.

New Date points for all: Elan Financial is very sensitive to new (1-6 months old) credit inquiries. I was just turned down for their 18 month 0 int. business credit card. I had 781 score but with 4 new inquiries withing the last 5 months. But I turned around and applied and was approved the next day for $25k at Navy. So, it depends on what you need and where you apply.

Re: U.S. Bank and Elan Financial Relationship

unsungivy — Tue, 26 Nov 2024 21:02:59 GMT

@Owner wrote:
Question #1. No.
Elan Financial is the lending arm for many banks and credit Union thoughout the country. It's your personal lender or credit union that you need to have a relationship with. There is always some exceptions. If you already have 2 credit cards though your CU or Bank that uses Elan, then that would carry alot a weight.

New Date points for all: Elan Financial is very sensitive to new (1-6 months old) credit inquiries. I was just turned down for their 18 month 0 int. business credit card. I had 781 score but with 4 new inquiries withing the last 5 months. But I turned around and applied and was approved the next day for $25k at Navy. So, it depends on what you need and where you apply.

I would definitely not call balking at FOUR inquiries within 5 months being "very sensitive".

Re: U.S. Bank and Elan Financial Relationship

MrDisco99 — Sat, 30 Nov 2024 15:42:18 GMT

Having an Elan card does not affect the financial relationship you may or many not have with USBank.

Elan is the service provider for various issuing banks, not the lender. The issuing bank (e.g. in my case Renasant Bank) is the one putting up the money, not USBank.

As for Elan MCP vs USBank Cash+, for me the Elan category groups make more sense, and I prefer being able to set and forget and not having to make my selection every quarter. YMMV.

Re: U.S. Bank and Elan Financial Relationship

TrapLine — Sat, 30 Nov 2024 23:10:17 GMT

@MrDisco99 wrote:
Having an Elan card does not affect the financial relationship you may or many not have with USBank.

Elan is the service provider for various issuing banks, not the lender. The issuing bank (e.g. in my case Renasant Bank) is the one putting up the money, not USBank.

As for Elan MCP vs USBank Cash+, for me the Elan category groups make more sense, and I prefer being able to set and forget and not having to make my selection every quarter. YMMV.

Checked with my banker and he said Elan FInancial Services is shouldering all the risk and covers the spending of the customers. He went on to say, it is a customer accomodation and the bank really gets virtually nothing out of it.

Re: U.S. Bank and Elan Financial Relationship

MrDisco99 — Sun, 01 Dec 2024 01:26:48 GMT

@TrapLine wrote:
@MrDisco99 wrote:
Having an Elan card does not affect the financial relationship you may or many not have with USBank.

Elan is the service provider for various issuing banks, not the lender. The issuing bank (e.g. in my case Renasant Bank) is the one putting up the money, not USBank.

As for Elan MCP vs USBank Cash+, for me the Elan category groups make more sense, and I prefer being able to set and forget and not having to make my selection every quarter. YMMV.
Checked with my banker and he said Elan FInancial Services is shouldering all the risk and covers the spending of the customers. He went on to say, it is a customer accomodation and the bank really gets virtually nothing out of it.

Huh...

If that's what the banker said, then I guess I stand corrected. It doesn't really make much sense, though. Like you said, the bank gets virtually nothing out of it... so why market these products in their name?

I work for a (different) credit card service provider, so I assumed Elan was doing the same thing.

Re: U.S. Bank and Elan Financial Relationship

TrapLine — Sun, 01 Dec 2024 10:25:22 GMT

@MrDisco99 wrote:
@TrapLine wrote:
@MrDisco99 wrote:
Having an Elan card does not affect the financial relationship you may or many not have with USBank.

Elan is the service provider for various issuing banks, not the lender. The issuing bank (e.g. in my case Renasant Bank) is the one putting up the money, not USBank.

As for Elan MCP vs USBank Cash+, for me the Elan category groups make more sense, and I prefer being able to set and forget and not having to make my selection every quarter. YMMV.
Checked with my banker and he said Elan FInancial Services is shouldering all the risk and covers the spending of the customers. He went on to say, it is a customer accomodation and the bank really gets virtually nothing out of it.
Huh...

If that's what the banker said, then I guess I stand corrected. It doesn't really make much sense, though. Like you said, the bank gets virtually nothing out of it... so why market these products in their name?

I work for a (different) credit card service provider, so I assumed Elan was doing the same thing.

You know, since you have seen other approaches just maybe, Elan Financial Services taylors programs that vary from bank to bank depending on what the expectations may be? Glad you came back ... did not ask that of the banker (banker is owner of bank) as it did not dawn on me. So, may be one size does not fit all.

To add, the banker did not want the work running his own program or the risk taking ... also, he does not like offering Debit Cards. His focus is home mortgages in a small more rural environment. Offering the more modern day services is being done as the newer younger customers expect it and the bank really has been catering to the paper check, stamp and envelope crowd. I even said to him, the older folks are moving away or passing on ... may need the modern day to survive (my opinion any way).