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Wells Fargo CLI - Denied, interesting reason...

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Brian_Earl_Spilner
Credit Mentor

Re: Wells Fargo CLI - Denied, interesting reason...

Wells fargo is one of the only true relationship based lenders out of the big names. BofA is another. Many people confuse cross-marketing and cross-selling as relationship, but they're not the same. In a true relationship based bank or credit union, how you handle one of their products could make or break an application for anything from a CLI to a mortgage. 

    
Message 11 of 32
LADave
Established Contributor

Re: Wells Fargo CLI - Denied, interesting reason...


@Brian_Earl_Spilner wrote:

Wells fargo is one of the only true relationship based lenders out of the big names. BofA is another. Many people confuse cross-marketing and cross-selling as relationship, but they're not the same. In a true relationship based bank or credit union, how you handle one of their products could make or break an application for anything from a CLI to a mortgage. 


This is true, and it's good to keep in mind. When I got my first card with WF, they were my only bank, and I'm pretty sure that my banking relationship with them helped me get the Active Cash (which had my highest SL up to that point, at $4500). When I got approved for the Autograph last year it was $1700, and even though my credit was better my banking history with WF at that point was less favorable.

 

I prefer to keep more of my money at Capital One where I'm getting 0.1% on checking and 3.3% on savings. WF is now at the point where their credit cards are more attractive to me than their checking and savings, so even if those weren't holding me back from a CLI it might still be time to close those accounts.

Message 12 of 32
Brian_Earl_Spilner
Credit Mentor

Re: Wells Fargo CLI - Denied, interesting reason...


@UncleB wrote:

@Anonymous wrote:

After reading this thread ... I am shocked! Smiley Surprised

Never knew there was a banking connection to the credit sides. We read about relationship banking and here is a real-world example. Smiley Frustrated

Oh ... Smiley Sad


Yeah, it's definitely a "thing" with WF. 

 

It can sometimes work out in one's favor, though.  When I got my Propel I was auto-approved for $15k, which at that time was quite generous (and still is even now).  At the time of my approval I had a substantial balance in a joint savings account, and I'm quite certain that was a factor.

 

I still think it's weird that in some cases having no WF checking/savings account all could be better than having one with a modest balance.  That's illogical to me, but that's how they roll.

 

For what it's worth, I recall seeing a few posts over the years where someone's recon with Chase failed due to a past NSF in a Chase checking account, so deposit account activity can come into play with Chase as well.


It actually makes sense about someone better off without a checking or savings. They're basically trying to woo them over.

 

As for chase and the nsf, from what I've seen, that can be pretty standard in the industry.

    
Message 13 of 32
mgood
Valued Contributor

Re: Wells Fargo CLI - Denied, interesting reason...

I was denied for CLI multiple times and that was one of the reasons given.

When I hit 6 months since my last CLI, it was granted, but there was still a letter stating the reasons they didn't grant the full amount I asked for (16k was a number I just pulled out of the air and didn't really expect to get) and that was one of the reasons. Still got 2.9k added to my 11.3k to make it 14.2k, which I'm fairly happy with.

 

When I was a little kid, I lived in a small town with only one bank. My parents banked there. When I was old enough, that's where I started my first checking account. I went off to college then moved around a bit. I ended up back in this same small town for a while. During the time I'd been gone, the small local bank had been bought out and became a Norwest Bank. Most of the Norwest branches were later bought by Wells Fargo. So now there's a Wells Fargo in the same location, with many of the same people I knew from back in the day. That's where I naturally opened an account. I've kept WF as my primary bank since then and haven't had any serious complaints. But yeah, that was a bit of a setback when they used that account information against me. I really think I was denied the CLI because it hadn't been 6 months. They might sometimes grant a CLI at 4 months. So I tried at 4 and again at 5, but was approved at 6. I think the account balance was just something to put on the denial letter because nothing much had changed between then and the time I was approved except that I crossed the 6-month line.



EQ8 769, TU8 766, EX8 765 as of July 21
AZE7 - 3% Utl - New Cards: 1/6, 3/12, 6/24
Message 14 of 32
TRC_WA
Senior Contributor

Re: Wells Fargo CLI - Denied, interesting reason...


@mfinsmi1 wrote:

@desertrose841 i too was declined based on my checking and saving account balance.... so i closed my accounts with them . Cant use that excuse next time i ask theyll have to come up with something better


Yep... been denied for CLIs on both my WF cards for the checking account reason.

 

Seriously considering just moving all my DD's that are currently split between lenders to my NFCU accounts then WF will have to come up with another reason. 

 

At the same time though I should probably just wait it out till my baddies are gone in a year and then I'll probably be good.  I also have an auto loan with WF so I have plenty of relationships with them.

FICO8 current as of : 4-17-24 EQ: 724 TU: 707 EX: 706
Hard INQs last 12 months: EQ: 5 | TU: 8 | EX: 9
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 27% --- AAoA: 5.5 years --- Income: $200k
Last app: 4-6-24
Message 15 of 32
difringe
Established Contributor

Re: Wells Fargo CLI - Denied, interesting reason...


@desertrose841 wrote:

My score is about 770 across all 3. 

The reason for denial was that I also have a checking account with them. My balance on that account is usually6 between 10-20$ everytime. I just don't use that checking account. It is there just as backup. Also, note that my balance is $0. Current CLI $4000.

 

reasons given: 1) my checking balance is too low. LOL.

2) once in the last 4 years of having it I maxed out my card, was about $100 or so above the limit. 

 

I would have NEVER thought that my checking account would be a factor in their decision. 


Sorry to hear about this! Something similar happened to me, I got the Reflect card for a balance transfer, transferred less than 70% of the limit and was making minimum-only payments...then one day I got a letter stating they cut my limit from $8000 to $6750 (not much above what my balance was at the time), with the explanation that I had a low checking account balance. Needless to say, I paid off the card and closed the account once it got to 1yr old.

Message 16 of 32
LADave
Established Contributor

Re: Wells Fargo CLI - Denied, interesting reason...


@difringe wrote:

@desertrose841 wrote:

My score is about 770 across all 3. 

The reason for denial was that I also have a checking account with them. My balance on that account is usually6 between 10-20$ everytime. I just don't use that checking account. It is there just as backup. Also, note that my balance is $0. Current CLI $4000.

 

reasons given: 1) my checking balance is too low. LOL.

2) once in the last 4 years of having it I maxed out my card, was about $100 or so above the limit. 

 

I would have NEVER thought that my checking account would be a factor in their decision. 


Sorry to hear about this! Something similar happened to me, I got the Reflect card for a balance transfer, transferred less than 70% of the limit and was making minimum-only payments...then one day I got a letter stating they cut my limit from $8000 to $6750 (not much above what my balance was at the time), with the explanation that I had a low checking account balance. Needless to say, I paid off the card and closed the account once it got to 1yr old.


This is the first time I'm seeing a DP about Wells Fargo (or any other bank) actually giving a CLD for having a low checking balance. That's a very interesting DP. Do you still have the letter, and can you quote how they said it?

Message 17 of 32
desertrose841
Established Member

Re: Wells Fargo CLI - Denied, interesting reason...

Sorry, I just checked and even in my online account to see if the same letter message was there but nope. I am really thinking of closing that account as I do not need it. 

Message 18 of 32
TRC_WA
Senior Contributor

Re: Wells Fargo CLI - Denied, interesting reason...

@mfinsmi1 wrote:

 i too was declined based on my checking and saving account balance.... so i closed my accounts with them . Cant use that excuse next time i ask theyll have to come up with something better



@TRC_WA wrote:


Yep... been denied for CLIs on both my WF cards for the checking account reason.

 

Seriously considering just moving all my DD's that are currently split between lenders to my NFCU accounts then WF will have to come up with another reason. 

 

At the same time though I should probably just wait it out till my baddies are gone in a year and then I'll probably be good.  I also have an auto loan with WF so I have plenty of relationships with them.


... and 10 days later I've done exactly that.

 

Closed my WF checking yesterday... moved all my DD's to NFCU.  Will go for a CLI on my WF cards later this year when my baddies start falling off and reports are a little better.  Will be interesting to see their excuse for a denial now being that "checking account balance too low" will be out the window.  Smiley LOL

FICO8 current as of : 4-17-24 EQ: 724 TU: 707 EX: 706
Hard INQs last 12 months: EQ: 5 | TU: 8 | EX: 9
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 27% --- AAoA: 5.5 years --- Income: $200k
Last app: 4-6-24
Message 19 of 32
LADave
Established Contributor

Re: Wells Fargo CLI - Denied, interesting reason...

I'm going back and forth on whether to close my WF checking account after my next direct deposit hits the account next week. I've had checking with them for almost 18 years(!) while living in multiple towns across 2 states. They seem to have more branches near me than anyone else, which has always been their main draw for me (and their service has been very good). But I'm keeping more of my cash at Capital One where the APYs are much better, and the early direct deposit is at least as good. And I have a free Union Bank checking account in case I need a local branch, and that will hopefully stay free after they complete their merger with U.S. Bank.

 

I'll keep some money at Union/U.S. Bank, and hopefully that will make it easier to apply for one of their cards down the road.

Message 20 of 32
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