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Chase bank - The relationship bank

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Valued Contributor

Re: Chase bank - The relationship bank

Congrats.

 

I'm sure Chase puts more value on relationships with larger deposits, direct deposits, and more age, but just curious if anybody has benefited from (say) opening a savings account and parking a few hundred dollars there, in six months or a year. Maybe that's too low to move the needle, but I'm thinking about doing that. In fact, I opened the savings account and just wondering whether to use it or not.


No derogs, but tons of inquiries and heavy credit-seeking behavior. In March of 2019, I had no open accounts, a charge-off, two collections, and scores in the low 500s. What I call the "thick build method" worked for me, but may not work for every situation.
Cards

Authorized user / Corporate / Auto loan / Personal loan

Card CLs total $89,900, not counting the AU card. The AU card brings the total to $114,900. In March 2019, card CLs totaled $0.

Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | American Express Delta Gold, $1,000, 09/19-10/20 | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Message 11 of 51
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Super Contributor

Re: Chase bank - The relationship bank


@KJinNC wrote:

Congrats.

 

I'm sure Chase puts more value on relationships with larger deposits, direct deposits, and more age, but just curious if anybody has benefited from (say) opening a savings account and parking a few hundred dollars there, in six months or a year. Maybe that's too low to move the needle, but I'm thinking about doing that. In fact, I opened the savings account and just wondering whether to use it or not.


I cannot say whether it will definitely help or not help but to be honest a few hundred dollars is nothing to a big bank. Most banks don't really care about "relationship" unless you have a ton of money. The OP put 10k in savings, which is still not a ton of money, but I guess enough to see some prequalified offers. However, we have no way to know whether they would have gotten the same offers with only 5k in the bank, etc. Just too many variables.

 

There's also an opportunity cost to keep in mind because a savings account at Chase pays, what, 0.02%? Rates have dropped, but you can still get at least 1.50% in an online savings account.

Message 12 of 51
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Regular Contributor

Re: Chase bank - The relationship bank

When I was in college I worked credit card customer service for Chase Manhattan Bank, around when they merged with JPM, and back then the bank's motto was "The Right Relationship Is Everything." And yes, those credit customers who were also retail bank customers seemed to have "better" terms, like higher credit lines or lower APRs. One time, they gave out brand new platinum mastercards* to couples who'd just gotten married, just for getting married. No credit checks, no apps, checking customers got a message while they were using the ATM asking if they wanted the new CC or not. How Chase knew who got married, IDK, lol. A lot of people I spoke to got credit lines like 1,500 but a lot of them also were surprised they got the card because they didn't think they could get one. That was a lifetime ago but I'm sure some processes are still in place. 

 

*back then platinum was the highest level card you could get

Member FICO 800 Club
Message 13 of 51
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Valued Contributor

Re: Chase bank - The relationship bank


@kdm31091 wrote:

@KJinNC wrote:

Congrats.

 

I'm sure Chase puts more value on relationships with larger deposits, direct deposits, and more age, but just curious if anybody has benefited from (say) opening a savings account and parking a few hundred dollars there, in six months or a year. Maybe that's too low to move the needle, but I'm thinking about doing that. In fact, I opened the savings account and just wondering whether to use it or not.


I cannot say whether it will definitely help or not help but to be honest a few hundred dollars is nothing to a big bank. Most banks don't really care about "relationship" unless you have a ton of money. The OP put 10k in savings, which is still not a ton of money, but I guess enough to see some prequalified offers. However, we have no way to know whether they would have gotten the same offers with only 5k in the bank, etc. Just too many variables.

 

There's also an opportunity cost to keep in mind because a savings account at Chase pays, what, 0.02%? Rates have dropped, but you can still get at least 1.50% in an online savings account.


Yeah - not worth it to me to move all of my banking there to possibly improve odds of getting a card I want but don't need (the Freedom rotating card and/or the Amazon Visa). I have a good thing going with Coastal. Member since 1987. And, I live in a state with a grand total of two Chase branches, of which the closest to me is about 35 minutes from my house. On the other hand, I don't care about the difference in interest rates on a few hundred dollars, so if that got me past 5/24, it would be worth it. I doubt it will, since it is peanuts I'm talking about. Just curious if anybody has tried it and has any anecdotal evidence one way or the other.


No derogs, but tons of inquiries and heavy credit-seeking behavior. In March of 2019, I had no open accounts, a charge-off, two collections, and scores in the low 500s. What I call the "thick build method" worked for me, but may not work for every situation.
Cards

Authorized user / Corporate / Auto loan / Personal loan

Card CLs total $89,900, not counting the AU card. The AU card brings the total to $114,900. In March 2019, card CLs totaled $0.

Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | American Express Delta Gold, $1,000, 09/19-10/20 | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Message 14 of 51
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Valued Contributor

Re: Chase bank - The relationship bank


@hinu wrote:

When I was in college I worked credit card customer service for Chase Manhattan Bank, around when they merged with JPM, and back then the bank's motto was "The Right Relationship Is Everything." And yes, those credit customers who were also retail bank customers seemed to have "better" terms, like higher credit lines or lower APRs. One time, they gave out brand new platinum mastercards* to couples who'd just gotten married, just for getting married. No credit checks, no apps, checking customers got a message while they were using the ATM asking if they wanted the new CC or not. How Chase knew who got married, IDK, lol. A lot of people I spoke to got credit lines like 1,500 but a lot of them also were surprised they got the card because they didn't think they could get one. That was a lifetime ago but I'm sure some processes are still in place. 

 

*back then platinum was the highest level card you could get


What I gather from that is relationship is still embedded in their corporate culture from way back and so it does matter today at least somewhat if you have had a relationship with them. 

Scores, HPs/24 mos. (updated 10/09/20):
    Experian FICO Score 8 = 825, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 815, 1/24
    Equifax = 819, 0/24

Total 2019 rewards, incl. offers/deals = $1,709.07
Avg. rewards rate, incl. offers/deals = 3.92%

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 15 of 51
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Regular Contributor

Re: Chase bank - The relationship bank

Here I am wishing I could get a Chase DDA open but scoffing at having to park a balance or DD in one to avoid the fees. Online banks have spoiled me, but I wish more places followed Chase's (among others) lead and actually implement contactless debit cards and ATMs.

Message 16 of 51
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Valued Contributor

Re: Chase bank - The relationship bank

The longer I've been on My Fico, the more I've become aware that to some degree, all banks value relationship much more than I ever realized. 

 

I've observed the stories of others and seen my own experience with various lenders.  Some banks have programs like Bank of America's Preferred Rewards program that quantifies the relationship.  But you can see it with others too, in the approvals thread for data points on starting limits and CLIs and top limits.  Sure, big banks need more money to really notice you, but I think they notice even the small guys to some degree.  In particular, local banks and credit unions love relationship and loyalty.  But even Navy Federal, the largest credit union in the US by far, is very relationship-based.  My Fico members who have been customers longer before applying for credit have better approvals relative to their data points.  It's also well-documented that NFCU gives much better SLs on cards (#2) and (#3).  Members who have active banking with them, open auto loans, mortgages, CDs, or savings seem to progress more smoothly to higher limits.  There are credit cards that have been identified as true "relationship cards."  With these, your credit score and income won't get you into the door unless you also have established relationship.  One of these is the Bank of America Premium Rewards card, a card that is obscure to many outsiders but is a carefully-issued card at BofA.   Sometimes my deposit accounts have not seemed to help me, so I'm not saying it always works.  But more often than not, it has the potential to help.

 

So yes, Chase likes relationship but in truth, most banks do.   And building deposit relationship can be the foot-in-the-door we need to get the credit cards we seek. 

 

By the way, regardless of this, Chase is my highest single lender with total credit lines of $138,400.  And my only relationship with them has been credit cards, no banking accounts or loans.  However, my single oldest card with them dated back almost 20 years before I added the bulk of my recent new credit.  So the nature of the relationship can be credit cards or loans or banking accounts, but I do believe it helps regardless of how you do it. 



Updated 10/08/2020
Total Length of Credit = 35+ years; AoOA (Currently open accounts) = 27+ years;
AAoA = 8+ years; AoYA = less than 1 year (Aug 2020)
Total Open Credit Lines Over $538K. Utilization Less Than 1%.
Inquiries until Nov 2020 (TU:3 -- EQ:4 -- EX:9)
New Accounts: 3/6 months; 8/12 months; 12/24 months (as of 10/15/20)
*Hover cursor over each card to see name & CL, or press & hold on mobile app.
Message 17 of 51
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Established Contributor

Re: Chase bank - The relationship bank

I would personally consider Chase again, but after burning them on 2 cards, it'd be a long road uphill to regain their trust, and frankly I don't blame them.  Alternatively, it seems best to begin fresh with a FI such as B of A, of course, I'll still have to prove my worth with them, as with every other FI, but nice to hear they do have some preferred programs.

 

Kind of irks me that my local FI seems, after a year+ with them, to be somewhat oblivious, hence my interest in looking elsewhere. I am planning on calling them Monday, guess I at least owe them that before I leave them.

Message 18 of 51
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Re: Chase bank - The relationship bank


@EverForward wrote:

I would personally consider Chase again, but after burning them on 2 cards, it'd be a long road uphill to regain their trust, and frankly I don't blame them.  Alternatively, it seems best to begin fresh with a FI such as B of A, of course, I'll still have to prove my worth with them, as with every other FI, but nice to hear they do have some preferred programs.

 

Kind of irks me that my local FI seems, after a year+ with them, to be somewhat oblivious, hence my interest in looking elsewhere. I am planning on calling them Monday, guess I at least owe them that before I leave them.


I wouldn't say you "owe" them anything but if they care at all about their customers or if you think it might make a difference, you could ask to speak to a manager before you leave.  Some people don't like to "complain" but a customer with an honest gripe can give good feedback to a receptive manager who is willing to listen and knows there is always room for improvement.

 

For anyone interested, here's a little more about how Bank of America rewards relationship.  I do like how it's well-defined.

 

Just having a checking account at Bank of America boosts your credit card payouts by 10% when you deposit cash rewards.  So a Cash Rewards card paying 1%, 2% or 3% earns 1.10, 2.20% or 3.30% respectively.  That's a separate boost from the Preferred Rewards Program.

 

The Bank of America Preferred Rewards program requires total deposits in accounts and investments of at least $20,000.  That is the bottom level of the Gold tier.  Platinum starts at $50K.  Platinum Honors at $100K.   That's not just basic savings, checkings, CDs.  Bank of America bought Merrill Lynch in 2009, and investment accounts there count also.  Some people have rolled over IRA's or other long-term investments to qualify for higher Preferred Rewards status.   Depending on the tier, you receive a range of benefits including waived fees, higher interest payments on accounts (although it's still not impressive), reduced fees on loans, etc.  But for credit cards, it can really bump up your return.  Instead of just 10% back like you get with checking, you get credit card rewards boost of 25%, 50% or even 75% respectively based on tier status, and that applies to any credit cards you hold.  For a Cash Rewards card that pays 1% on anything, 2% on groceries or warehouse, or 3% on special category, that gives you:

 

  - Gold (1.25%, 2.5%, 3.75%)

  - Platinum (1.5%, 3%, 4.5%)

  - Platinum Honors (1.75%, 3.5%, 5.25%)

 

The only cap is that the 2% and 3% categories combined only pay that amount up to $2500 per quarter, $10K per year.

 

Even at Platinum Honors, the base rewards level of the Cash Rewards card is unimpressive at 1.75%.  There are lots of 2% or better cards.  With the exception of a couple of unicorns like the recent AOD FCU 3% cash back card which may or may last for the long haul, the highest paying cash back cards that have stuck around have maxed out at about 2.5% (USAA Limitless Cash Back.)   So Platinum or Platinum Honors clients would really benefit from having the Premium Rewards credit Card.  As I mentioned upthread, it's hard to get without relationship, as a minimum some banking accounts if not investments.  At face value, the card doesnt' look that impressive.  It charges a $95 AF.  And it only pays an uncapped 2% cash back on travel and dining out and 1.5% elsewhere, all uncapped.  Yawn, right?  It gets better.  There are credits, so if you travel you get Global Entry or TSA precheck reimbursed once every 4 years (value $25 per year.)  And you can be credited $100 annually for airline incidentals like checked bags or other fees.  So if you use all the credits, Bank of America is actually paying you an average of $30 per year just to carry the card!   This card is also eligible for the boost in credit card rewards.  So instead of 1.5% and 2%, you earn:

 

  - Gold: (2.5% travel-dining),(1.875% on anything else)

  - Platinum: (3% travel-dining),(2.25% on anything else)

  - Platinum Honors: (3.5% travel-dining),(2.625% on anything else)

 

These rewards are CASH payouts, so if you prefer flexible cash instead of dealing with more complex travel-limited MR-UR-TY points from AMEX, Chase, or CITI, this card might be attractive!

 

With the exception of those recent 3% "unicorn" cards (AOD FCU, USAlliance CU), that 2.625% has been the best available uncapped uncategorized cash-back rate that didn't require payment by Mobile Wallet. (US Bank Altitude Reserve pays 3% but only on Mobile Wallet payments and it carries a $400 AF, so allowance has to be made for offsetting part of that fee against cash back.  The travel credits only help with $325 of that.)

 

This is an example of some banks get more concrete defining how they reward relationship instead of leaving clients hanging and wondering what they are getting back for their deposits and loyalty.   I've seen very similar programs advertised by some other banks so there is industry imitation. 

 



Updated 10/08/2020
Total Length of Credit = 35+ years; AoOA (Currently open accounts) = 27+ years;
AAoA = 8+ years; AoYA = less than 1 year (Aug 2020)
Total Open Credit Lines Over $538K. Utilization Less Than 1%.
Inquiries until Nov 2020 (TU:3 -- EQ:4 -- EX:9)
New Accounts: 3/6 months; 8/12 months; 12/24 months (as of 10/15/20)
*Hover cursor over each card to see name & CL, or press & hold on mobile app.
Message 19 of 51
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Community Leader
Valued Contributor

Re: Chase bank - The relationship bank


@hinu wrote:

When I was in college I worked credit card customer service for Chase Manhattan  Bank, around when they merged with JPM, and back then the bank's motto was "The Right Relationship Is Everything." And yes, those credit customers who were also retail bank customers seemed to have "better" terms, like higher credit lines or lower APRs. One time, they gave out brand new platinum mastercards* to couples who'd just gotten married, just for getting married. No credit checks, no apps, checking customers got a message while they were using the ATM asking if they wanted the new CC or not. How Chase knew who got married, IDK, lol. A lot of people I spoke to got credit lines like 1,500 but a lot of them also were surprised they got the card because they didn't think they could get one. That was a lifetime ago but I'm sure some processes are still in place. 

 

*back then platinum was the highest level card you could get


Oh the memories of Chase Manhattan. The name I knew from birth through 90's. They were huge then, and when they bought Chemical, they were everywhere in NY/NJ.

I certainly don't make the money I used to, being disabled now. I do believe my 30+ years still helps with offers and promos. They aren't falling over themselves to court me, but that's ok.

Ive really only had 2 banks with long relationship... chase and my PNC college account. My experience shows these banks to acknowledge some loyalty. Not to the extent a CU will.

Message 20 of 51
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