topic Re: Credit Union credit cards question... in Credit Cards

Credit Union credit cards question...

CreditScoreImprovement24 — Fri, 09 May 2025 17:46:34 GMT

So, I am a member of TDECU credit union and while I have a checking account with them, I have zero balance in it..no money parked with them at all. HOWEVER, I do transfer in the exact amount of money I need to pay off the credit card every month, but after payment, it goes back to zero and stays at zero until time for next payment.

However, they approved me for a 5K starting limit credit card.

Will I have to deposit money into my checking/park money with them in order to obtain a higher limit? Or just request CLI when my score is higher and I have a couple months of on-time payments like any other card? (700 when approved) ...Would being responsible with this card open me up to obtain higher limit with say a PLOC with the credit union etc etc?

How important is the checking account balance?

thanks

Re: Credit Union credit cards question...

AndySoCal — Fri, 09 May 2025 20:39:50 GMT

@CreditScoreImprovement24 CLI request would look at traditional underwriting data items. The amount in a checking account does improve credit worthiness. I would set payments by pushing the monies to the bank or credit union etc. I would use On Line Bill pay it gets the money and the account balance updates. I do not understand how checking or savings balance or having either one or both helps improve credit worthiness. There is the possibility the bank or credit union does look at during underwriting.

Re: Credit Union credit cards question...

Drifter73 — Fri, 09 May 2025 20:46:24 GMT

I've been with TDECU for roughly 8 years. Have checking, savings, platnum cc, and paid off x2 loans with them already.

I rarely park money with them and use them kind of the same way, a middle-man to pay on multiple credit cards from different lenders and occasionally take advantage of a low rate loan.

While I haven't had issues with a CLI not parking money, It's a HP to EQ to get one.

Generally, I wait to ask for a cli until I need another credit product from them (e.g. loan) and go into a branch in person.

In person, you can request a single HP for multiple products at once, minimizing Impact to the bureaus.

Would it help to have money parked? Yes

Is it required? No, but odds are better if you did have parked money or doing the cli with the same HP of another product app.

Re: Credit Union credit cards question...

creditfan — Fri, 09 May 2025 20:50:04 GMT

@CreditScoreImprovement24 wrote:
So, I am a member of TDECU credit union and while I have a checking account with them, I have zero balance in it..no money parked with them at all. HOWEVER, I do transfer in the exact amount of money I need to pay off the credit card every month, but after payment, it goes back to zero and stays at zero until time for next payment.

However, they approved me for a 5K starting limit credit card.

Will I have to deposit money into my checking/park money with them in order to obtain a higher limit? Or just request CLI when my score is higher and I have a couple months of on-time payments like any other card? (700 when approved) ...Would being responsible with this card open me up to obtain higher limit with say a PLOC with the credit union etc etc?

How important is the checking account balance?

thanks

To me is zero, however, everyone's opinion is different. Credits application is based on credit worthy and other factors in your credit reports.

Yes, some banks or CU do want to see $$$, but it's not a BIG player to make into decision.

Re: Credit Union credit cards question...

indiolatino61 — Fri, 09 May 2025 23:56:32 GMT

@CreditScoreImprovement24 wrote:
So, I am a member of TDECU credit union and while I have a checking account with them, I have zero balance in it..no money parked with them at all. HOWEVER, I do transfer in the exact amount of money I need to pay off the credit card every month, but after payment, it goes back to zero and stays at zero until time for next payment.

However, they approved me for a 5K starting limit credit card.

Will I have to deposit money into my checking/park money with them in order to obtain a higher limit? Or just request CLI when my score is higher and I have a couple months of on-time payments like any other card? (700 when approved) ...Would being responsible with this card open me up to obtain higher limit with say a PLOC with the credit union etc etc?

How important is the checking account balance?

thanks

According to Forbes, checking account balances do not directly affect credit granting decisions. However, the behaviour of the checking account, such as unpaid overdrafts, if it is sent to collections or is closed with a negative balance may indeed affect credit decisions. There are also banks that offer "opt-in" reporting options where the balance may be a positive data point.

Re: Credit Union credit cards question...

CreditScoreImprovement24 — Sat, 10 May 2025 06:30:11 GMT

@Drifter73

How generous were they with CLI? Did you need to spend much or does it not matter?

Re: Credit Union credit cards question...

Drifter73 — Sat, 10 May 2025 17:01:39 GMT

@CreditScoreImprovement24 wrote:
@Drifter73

How generous were they with CLI? Did you need to spend much or does it not matter?

They doubled it with maybe 9% spend of the cl per month for 7 months. Though, I apped for a small $5k loan in branch and used the same hp for the cli. I might of had $115 in checking and $50 in Savings at the time.

I like to have 1 or 2 types of loans at all times. Even if I don't need them to help with credit mix, so just as I'm about to pay one off, I grab another, to keep the mix going.

It should be noted that even though I don't hold money with them, using them as a middle man to pay credit cards means they can still see thousands per month in cash flow/deposits.

In hindsight, I think that strategy with them and other institutions i do that with, encourages them to offer better products to me trying to earn more of my patronage and business.