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Previous banking relationship prior to apping?

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Established Member

Previous banking relationship prior to apping?

Any banks out there that take into consideration previous banking relationship and having money in the account prior to apping for new credit? I understand some banks will actually cite this as a reason for denial for CLIs or graduation of a secured card.

Message 1 of 17
16 REPLIES 16
Valued Contributor

Re: Previous banking relationship prior to apping?

Local CU's are big on banking relationships. 

Message 2 of 17
Valued Contributor

Re: Previous banking relationship prior to apping?

Do you have anyone specific in mind?

 

I've gotten cards with all of the makor banks w/ NO prior relationship.  I've had some BS CLI denials though based on lack of relationship that tend to go away with time and then they approve the CLI.  Mostly the denials have been for lack of time in the interval in which they were requested.

500K+ TCL / 800+ FCOs
Message 3 of 17
Regular Contributor

Re: Previous banking relationship prior to apping?


@Hasselfree wrote:

Local CU's are big on banking relationships. 


I don't know about that. My CU account was opened up when I was youth age. Now having control and applied for my CU Visa on Jan 2019, the card's lowest SL is $500. When they asked me the SL would be, I asked for $1500. After 2 hours of waiting, I got a call from my CU saying that they are approving me for $1,000.

 

I not really sure that banking relationships did have any effect on that. It's also possible that they just made it based on the CR they did.

Michigan Schools & Gov't Credit Union Classic Visa Card | $3kDiscover Student Cash Back | $2300Capital One Savor Card v1 | $11k AUAmex 1.5% CB | $2kBest Buy Store Card | $3k

July 2018
Ford Credit Loan $199.26/month (3 yrs)
January 2019
Discover Cash it Card $500
Michigan Schools and Gov't CU Card $1,000
February 2019
Self Lender Loan (Closed July 2019)
May 2019
Discover CLI $1.2k
July 2019
Discover System CLI $600
Amex $2,000
Best Buy Store Card $3,000
October 2019
MSGCU CLI $2k

Eyes on Credit Cards
BoA Cash Rewards (with or without Student Verison)Gas Card with 5% Cashback w/ no AF2% Cashback EverythingDining & Entertainment Category Card
Message 4 of 17
Established Member

Re: Previous banking relationship prior to apping?


@Hasselfree wrote:

Local CU's are big on banking relationships. 


My local CUs are a no go for me. Mostly all my local CUs require a HP to apply to open a bank account with them. Some will even judge you on your score and if it's low enough they will assign you a "rebuilder bank account" with a $10 monthly fee (no possibility to waive fee). Once your score improves they can upgrade you to their regular more affordable banking account. I can also see the opposite happening once they open a bank account with you. So let's say you experience hardship and your score plummets, will they downgrade you from their regular bank account to their rebuilder bank account? I think they would do that if they already care enough about your FICO to open a bank account.

 

I know a lot of people on this forum would have an issue with this model of business. I certainly do. If they are going to charge you a $10 monthly fee why not just take your business to a bigger bank with more assets and more branches (who will waive the $10 monthly fee if you meet one of their monthly requirements) with no HP. 

 


@Obscure-Expert wrote:

Do you have anyone specific in mind?

 

I've gotten cards with all of the makor banks w/ NO prior relationship.  I've had some BS CLI denials though based on lack of relationship that tend to go away with time and then they approve the CLI.  Mostly the denials have been for lack of time in the interval in which they were requested.


I have Citi in mind. I'm in a bit of a quandary. I really want their Citi secured card (I know it takes 18 months to graduate but that's OK with me). I am looking for a long term relationship with Citi. However, I'm afraid if I apply right now without a prior banking relationship I would have wasted a HP. I don't mind establishing a relationship with them and apping for the secured card in a couple of months when my scores improve. I have read some people have gotten approved with low scores without prior banking relationship, but as they say, YMMV. And if I were to be denied, I can then recon and point out my banking relationship with them and how I plan to use them long term. I think that would be better than apping right now and having nothing to recon on.

Message 5 of 17
Valued Contributor

Re: Previous banking relationship prior to apping?

Secured.... hmm... There are plenty of options out there that are popular here.  Citi isn't menitoned all that much though when it comes to secured.  Usually Discover, BOA, or something a bit more local.  Try the pre-qulification for Discover / BOA and see what pops.  Discover tends to release the deposit after 7 statements if things improve during that time.  BOA someitmes offers a 99/500 where you put down $99 and get a $500 limit while you're secured.

500K+ TCL / 800+ FCOs
Message 6 of 17
Established Member

Re: Previous banking relationship prior to apping?


@Obscure-Expert wrote:

Secured.... hmm... There are plenty of options out there that are popular here.  Citi isn't menitoned all that much though when it comes to secured.  Usually Discover, BOA, or something a bit more local.  Try the pre-qulification for Discover / BOA and see what pops.  Discover tends to release the deposit after 7 statements if things improve during that time.  BOA someitmes offers a 99/500 where you put down $99 and get a $500 limit while you're secured.


I've looked into all those you mentioned and not getting approved. I actually apped for Capital One (without prequal) and denied. So you see why I'm a little concerned about apping for Citi at this point.

Message 7 of 17
Valued Contributor

Re: Previous banking relationship prior to apping?

Can you provide more info about your current holdings and scores?  Baddies? BK? 

500K+ TCL / 800+ FCOs
Message 8 of 17
Established Contributor

Re: Previous banking relationship prior to apping?

OP, I can’t comment about Citi but not all CUs are like that. Check out some non-local options where you can apply online as well (I have DCU). Going the Citi route is not a bad idea either, but it would help to know your financial background to see what could be holding them back.


October 2019:

Stats:
Message 9 of 17
Contributor

Re: Previous banking relationship prior to apping?

Wells Fargo would be an odd one.  I have an account with them but don't keep a lot in it.  I actually got the account to get the bonus cash.  I applied for their card and was told I needed to have more in the checking account.  When I get a chance to go to a branch, I'm closing it.

Message 10 of 17
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