How Important is Banking Relationship?

[Anonymous]

Hi everyone,

I plan on going on an app spree somewhat soon. Maybe in January. I'm considering a variety of cards, one of which is the BBVA Clearpoints and another which is the Capital One Walmart card. I've actually opened a checking account with both BBVA and Capital One this year as they have very lucrative sign on bonuses. I was wondering if having an account with them will be factored into their decision in any significant manner. 

While I have these accounts, I am currently routing deposits to them, but I do not use them much otherwise. Sometimes I will pay my cards off with cash in those accounts. Otherwise I simply transfer funds out to my Chime savings account. So considering I have, but don't heavily use these accounts, will that also factor into approval considerations? 

tl;dr Does banking relationship matter with approval to any significant degree, and does the extent of usage on those bank accounts matter as well?

[Anonymous]

This question has come up a lot lately and has really been being asked for years.  There really isn't any definitive answer, as no one really knows.  All individuals can do is speculate.  For every person that says a relationship "matters" you'll find one that says it doesn't... it's really all a product of personal experiences.  What I would say is that under most circumstances it can't hurt, so no harm in hoping that it helps your profile in some way.  I would say that the chances of the relationship mattering would be quite proportional to the length of said relationship... so someone that has banked somewhere for 20 years will likely be more meaningful than someone that's got less than a year under their belt.

[Kforce]

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@Anonymous wrote:

This question has come up a lot lately and has really been being asked for years.  There really isn't any definitive answer, as no one really knows.  (+100)   All individuals can do is speculate.  For every person that says a relationship "matters" you'll find one that says it doesn't... it's really all a product of personal experiences.  ( I have be approved for numerous cards that the community said needed a relationship, with out one. I however have a long, strong profile, low utilization and never any inquiries.)  What I would say is that under most circumstances it can't hurt, so no harm in hoping that it helps your profile in some way.  I would say that the chances of the relationship mattering would be quite proportional to the length of said relationship... so someone that has banked somewhere for 20 years will likely be more meaningful than someone that's got less than a year under their belt.

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[Meanmchine]

I cant prove it but opened a couple Chase accounts and a year later was off their BL

[Credit12Fico]

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@Anonymous wrote:

This question has come up a lot lately and has really been being asked for years.  There really isn't any definitive answer, as no one really knows.  All individuals can do is speculate.  For every person that says a relationship "matters" you'll find one that says it doesn't... it's really all a product of personal experiences.  What I would say is that under most circumstances it can't hurt, so no harm in hoping that it helps your profile in some way.  I would say that the chances of the relationship mattering would be quite proportional to the length of said relationship... so someone that has banked somewhere for 20 years will likely be more meaningful than someone that's got less than a year under their belt.

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I have come across rejection letters posted online where a reason listed is "No deposit accounts" from BOA and "Low balances in deposit account" from Wells Fargo as one of the reasons along with other reasons for denial.

For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter. 

You don't need to have a prior relationship if you have great credit, but certain banks are in fact considering your existing relationship to give them a reason to approve you when they might not otherwise. Especially so for people with weaker credit history. A bank can use your deposit account to determine whether you have income or not.

I remember when apping the Fidelity card, I was specifically told in the application that my investment balances would be sent to Elan to be considered in the application process for the credit card.

The well known banks that consider the existing relationships are BOA, Chase, WF, US Bank, PNC. You don't need a relationship to get a card from them, but it sure helps your application when you do if they are not otherwise comfortable approving it with those particular banks. If you are feeling like your credit history is weak, open the checking account before applying for credit.  Often you can get a sign up bonus on both the checking account and the credit hard. Checking accounts can be opened in a matter of minutes from a mobile app these days. 

[Kforce]

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@Credit12Fico wrote:

For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter. 

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I have had cards with Fidelity, Wells Fargo BoA and many others with no previous or current relationship.

It is just another bogus reason because they have to put something on the denial.

They just don't like your profile.

I have seen similar bogus reasons on fico scoring models.

To many new inquiries, and or accounts and I haven't received any in 3 or 4 years.

I just shake my  head and smile at the nonsense.

You can't believe everything from denial letters or any scoring service.

For every customer that they print that denial reason, someone with no relationship got approved.  (Just my opinion)

[Remedios]

Here I am, in my corner waiting for someone to announce they got approved with "I don't bank with this lender, that must be why I got approved!" 

[Kforce]

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@Remedios wrote:

Here I am, in my corner waiting for someone to announce they got approved with "I don't bank with this lender, that must be why I got approved!" 

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Just as likely and equally important. 

[HeavenOhio]

I recall evidence that it helps with Navy Federal, US Bank, and maybe Bank of America.

[Anonymous]

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@Credit12Fico wrote:

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I have come across rejection letters posted online where a reason listed is "No deposit accounts" from BOA and "Low balances in deposit account" from Wells Fargo as one of the reasons along with other reasons for denial.

For certain banks, it's not just "personal experiences" or speculation. It's what the banks are writing in their denial letter. 

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I don't doubt that, but I agree with kforce above that those are just fluff denial reasons when the "real" reason is that overall profile is too weak.  There are certainly plenty of people out there that have obtained BoA, WF etc. products without an issue without having any prior relationship.  If you're talking someone that's on the cusp and feel that the banking relationship would tip the scales in an otherwise 50/50 outcome probability, my advice would be different.  I wouldn't suggest opening an account prior in order to reduce the chances of denial, I'd suggest taking the necessary steps prior to strengthen one's overall credit profile to increase approval chances.