No Logic regarding credit application approvals/denials

[navigatethis12]

As I said, General Electric issued the the PayPal line of credit and the Bancorp Bank issued you the debit card. Two completely different companies offering two completely different products. They probably did not have in mind people would use it as a backup for the debit card when they first came up with the idea of it.

I don't know abut Capital One. Perhaps they see the overdraft as less risky because most people wouldn't use it as a substitute for a credit card.

[Anonymous]

+1, if I had an overdraft line of credit, I would never use it purposely. It would have to be a mistake on my part to use it. I don't have overdraft protection on my checking account...never needed it.

If you plan to apply for a mortgage, I would highly recommend not using it. Mortgage underwriters consider use of an overdraft line of credit an overextension of your means. They see it in the same way they see a bounced check and there have been denials on the mortgage board for NSFs or use of overdraft protection within 60 days of applying for a mortgage as they look at all your bank statements. So I would try not to use it all. And definitely don't use it like a credit card by paying extra bills etc. you don't have the funds for.

Does the Paypal Extras come with rewards? I still don't fully understand how the Smart Connect is different.

As your score increases you will get less inconsistencies like this when applying for credit.

[Anonymous]

Different banks offered you different products, thus the differences.

Also, different products in the SAME company have different features (which means different costs to maintain for the CC company). A card that costs a lot for the company to maintain, would of course preferably be reserved for customers who are least likely to default on them. If they "suspect" you have a higher than normal chance of defaulting, they'll just throw the cheapest product at you to minimize whatever money they're losing.

If they think you're going to default, they'll not offer you anything.

if they think you have a slightly higher chance than normal of defaulting, you get a cheap(er) product and/or higher APR/fees so they can "milk" you for whatever it's worth and they also minimize their losses in the worst case scenario if you default.

if you are in "norm," you get an average product in line with what other competitors offer.

if you are flagged as low risk, they try to retain you with lots of benefits (which in turn means more cost to the CC company), and they still try to make money through other areas such as swipe fees.

There's a logic behind this. It's called risk management.

There's a reason why people in risk and acturial are paid so well in the banking, finance and insurance industries.