Relationship vs credit file

[Snook_on_the_Line]

Hello out there  ...

my question today is:

How much does your relationship with a bank have to do with whether or not they will approve your app for a credit card?

person A banks with 123 bank for five years

regular deposits

checking, CD and savings accounts 

never overdrafts

never had a late payment 

has a fico of 699

income 100k

1 old collection

person  B  has no prior relationship with 123 bank

same income, but better scores and no baddies

does the fact that person A has a good relationship with the bank make up for the difference in their credit files 

can they both get the same card with comparable rates and sl?

[NoHardLimits]

It depends on the bank.  Some will loosen underwriting standards if you already have an established relationship.  Other banks aren't swayed at all, even if you have substantial deposits.  Credit unions usually require a pre-existing membership.

[FicoMike0]

First, if this person A is me, I have not had 123 banks in five years. I do churn a lot of accounts, but not that many! Maybe by five years from now...lol.  Right now, I only have accounts with 16 banks.

All seriousness aside, my local medium size bank fixed me up when I was unscorable. The only big bank I've heard that about is wells.  I did just get approved by us b after opening a checking account, but who knows? If they offer a nice sign up bonus, I'll have an account there.

As far as sl, that really seems like a crap shoot. I suppose they look at disposable income, dti, phase of the moon...

[CorpCrMgr1]

It can't hurt to have a relationship with a banker or two. The same with tellers.

[Snook_on_the_Line]

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@FicoMike0 wrote:

First, if this person A is me, I have not had 123 banks in five years. I do churn a lot of accounts, but not that many! Maybe by five years from now...lol.  Right now, I only have accounts with 16 banks.

All seriousness aside, my local medium size bank fixed me up when I was unscorable. The only big bank I've heard that about is wells.  I did just get approved by us b after opening a checking account, but who knows? If they offer a nice sign up bonus, I'll have an account there.

As far as sl, that really seems like a crap shoot. I suppose they look at disposable income, dti, phase of the moon...

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With my existing relationship with Wells Fargo (123 bank) AND the recent eclipse I might have to try for one of their cards soon

im looking for a cu to join   
ive got a nice chunk of change from a personal injury settlement coming in a few months 

anyone know of a cu that would be more apt to give me a card with a decent sl and rate if I were to park five figures in savings and a 10k cd with them?

I was thinking Penfed maybe.  

[Traveler101]

With limited amount of credit and a strong income, look into First Tech FCU. They can overlook blemishes, I was approved with a bk on my file.They can blow other lenders out of the water with established rebuilding. YMMV. You wouldn't have to park a bunch of money there, but that could always help your cause.

[FlaDude]

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@NoHardLimits wrote:

It depends on the bank.  

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This is key. I've been with the same CU for over 40 years. A few years ago my FICO 8 scores were in the 750 range, a 30 day late that was almost 6 years old, and some hefty CC balances. My CU called me out of the blue to sell me a credit card (telling me I was pre-qualified), I went ahead and applied, and they denied me, wasting an HP for a card I really didn't need. This CU has always been tight on lending but the branch was convenient so I've stayed with them. I certainly can't count on the relationship helping with credit though.

A couple of years ago I had 3 CCs with Chase with a fairly long history on a couple of them. No checking/savings account. Applied for a 4th card and they denied me, my FICO 8 scores were in the 820 range at the time, so that relationship didn't help either.

[SouthJamaica]

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@Snook_on_the_Line wrote:

Hello out there  ...

my question today is:

How much does your relationship with a bank have to do with whether or not they will approve your app for a credit card?

person A banks with 123 bank for five years

regular deposits

checking, CD and savings accounts 

never overdrafts

never had a late payment 

has a fico of 699

income 100k

1 old collection

person  B  has no prior relationship with 123 bank

same income, but better scores and no baddies

does the fact that person A has a good relationship with the bank make up for the difference in their credit files 

can they both get the same card with comparable rates and sl?

---

Based on my personal experience, I would say that having deposit accounts with a bank or credit union has been meaningless in terms of getting me credit.

I know there are other folks who have had, or believe they have had, different experiences. 

But in my case, it has never meant  a thing.

[FicoMike0]

Maybe it would help if I had an intimate relationship with the bank manager. 

[Brian_Earl_Spilner]

The majority of lenders are not relationship lenders so it won't matter. If you want it to matter you need to find a lender that is relationship based. Wells Fargo was mentioned, BofA is another one. Credit unions can be hit and miss especially if they're on the larger side as they start to act like a bank.