New Student Special: How to Build Good Relationships with Banks

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If you think only credit scores can decide your successful application for a credit card, you are totally wrong. In fact, your credit scores and credit reports should be considered when you apply for a credit card. Besides, your relationship with banks is also a crucial element during your application process. We have mentioned it in many posts. For example, some banks, like Chase and Amex, pay much attention to your relationships. If you can maintain your good relationship with banks after getting an entry card, it takes little time for you to successfully apply for credit cards issued by those banks. And that’s also why we recommend some cards easy to be applied for to you. As you have got an entry card and maintained good relationships with banks, your application for other credit cards is relatively easy. But you should not care much about benefits of an entry card.

How can you build good relationships with banks? Here are some ways as follows:

1. To deposit money into your bank account

Actually, each bank hope their customers can deposit money into bank accounts. if you are willing to deposit money into your bank account, the bank will treat you better. In fact, many people are easier to get credit cards after depositing money in banks.

  • Chase: If you have over $10,000 deposits in Chase, you can apply for your credit cards with special consideration, which effectively lowers the difficulty of application for credit cards. It is reported that Chase will directly approve a Palladium credit card for you, if your deposit in the bank amounts to $250,000 to make you a Private Client.
  • Bank of America: If you have certain deposits in Bank of America, you can also obtain 123 credit cards even without credit history and SSN. And you will receive extra cash back as your deposits increase.

Apart from deposits, it is very useful for you to build relationship with bankers, especially when you have a good relationship with a fixed one. Bankers can help you in many aspects. For example, they can help you to write a wire transfer fee, make arguments on behalf of you, directly approve a credit card for you, or remove you from the bank’s blacklist. Bankers do have those rights which certainly can be used for you. If you want to utilize those rights, then try to build good relationships with a fixed banker through your capabilities.

Apart from fixed deposits, banks often hope you can also set your direct deposit there, which can save monthly fees in your checking account. And direct deposit can be a reason for you to build relationships with bankers, because regular income can make a good impression on bankers who approve credit cards.

You should be noted that never deposit illegal money in banks, because it is not you but the bank to decide whether your money is legal or not, especially Chase. We have mentioned it in the post How to Avoid Chase Closing All Your Accounts that you’d better avoid deposits with large amounts in Chase.

2. To pay back debts on time

To pay back debts on time can not only help increase your credit scores, but also is a very important process for you to build good relationships with banks. From the perspective of banks, you are a reliable customer if you can maintain full repayment all the time. Thus, banks will approve you a higher credit limit. If you cannot make repayment in full, you’d better, at least, pay back Minimum Payment on time.

Do not pay back money to your Checking Account with limited balance, as it is a serious stain if you have the Returned Payment. You should make sure that you have enough money in your checking account used for repayment before paying back money.

Repayment mentioned above refers to only credit cards. But if you have obtained loans from banks, is is also useful for you to pay back loans on time.

3. To frequently use you credit cards

In America, commission fee is very high as you swipe credit cards. Actually banks hope you can swipe your credit card as frequently as you can. Of course, we don’t recommend blind consumption to you. What we want to say is that you should swipe your cards as possible as you can which can increase your Rewards and the bank’s business statement.

4. To cautiously use your benefits

Apart from various points and cash back patterns, credit cards can also provide you many benefits, such as insurance for renting cars and extended warranties. But those benefits can be used as you need, instead of being used as you make up reasons. For example, someone who didn’t lose things claims he is stolen, and he may get money  which doesn’t belong to him back if the bank is not very strict on this issue. And we just want to say making money is a small matter which losing conscience is a big matter. If you are caught by the bank, you certainly should be added into the bank’s blacklist.

5. Do not cancel your credit cards after using your bonus

Many annual fee credit cards provide abundant sing-up awards, which attracts many people instantly. However, many people later find that their credit cards charge annual fees(actually various cards provide annual fees for free in the first year), and they want to cancel credit cards after using bonus. You can swipe your credit cards occasionally during the first year and consider whether you should cancel it as the bank charges annual fees. Yes, we need sign-up bonus and something else. But you should not take only sign-up bonus into your consideration.

Actually banks have performed various restriction practices in order to prevent such phenomenon. For example, Chase has clarified that you will not get approved if you are to obtain sign-up bonus through repeated opening and canceling of credit cards. However, Chase’s practice above doesn’t work out obviously; Citi will not provide you bonus if you open or cancel credit cards with 18 months.; Amex has regulated that one credit card can only obtain sign-up bonus one time. If you have opened a credit card, I advise you to use it during the first year and to discuss the matter with the bank as it charges your annual fees.

6. Some common misunderstandings

  1. To pay your interest actively is a good condition to build good relationships with banks.

In fact, there is no point about that. Though interest amount to a large portion of a bank’s revenue, to pay your interest actively actually has nothing to do with your building good relationship with banks. If you can use your credit cards as much as you can, banks have already earned much money from you. It may be better for you not to pay interest actively. If you always make full repayments and suddenly pay your interest, banks may worry whether you are capable to repay debts actually.

  1. To pay money back immediately as you use your credit cards

This method is suitable for credit cards with low credit limit, which can be overdrawn easily. You don’t need to pay back debts frequently after your credit limit increases.  And it has nothing to do with your relationship with banks. From the perspective of banks, it is good that you can promise to pay back full debts after the bill is issued.


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