Having two credit cards from same bank is bad?

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jly
 
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Having two credit cards from same bank is bad?

Postby jly » Mon Jul 08, 2013 1:11 pm

I need a new card for a balance transfer, so I applied for the Simplicity card with Citi. I was approved, but only with a $500 limit.

My other card with Citi has a high balance, and I was wondering if this has a big impact on the offer? Would applying with another company make much of a difference?

My credit rating is good, so I was really surprised by such a small limit.


takeshi
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Postby takeshi » Mon Jul 08, 2013 2:36 pm

Not necessarily. I have multiple cards with several companies with high limits. However, it is possible if you're near the total credit limit they're willing to offer you.

When you say your credit rating is "good" how are you determining this? You need to consider your whole credit picture. What do your reports say? What's your utilization? It's never just a matter of one single factor on its own.

AMEXPlatino86
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Postby AMEXPlatino86 » Mon Jul 08, 2013 2:36 pm

Having two cards from the same bank isn't necessarily a bad thing but whatever balances you carry does. Too high of a balance and they may consider you a high risk. Also the amount of time you open the cards also have a factor. YMMV.
Wells Fargo Platinum 2.100 (5/2011-cld 7/12/14)
AmEx Platinum (6/12)
Barclays Apple (6/12)
AMEX Gold Delta (5/13)
Marriott Rewards (7/14)

My credit score :cool:
EQ: unknown
EX: 762
TU: 752

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djrez4
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Postby djrez4 » Mon Jul 08, 2013 3:41 pm

Banks have all sorts of mechanisms to evaluate credit risk. If you don't have a relationship with them, they use external credit rating agencies like Experian or Transunion. If you're already a customer, they'll use internal data.

Citi already has internal data on you, including your current balance and payment history on your other card. With a high balance and minimal payments, they likely didn't want to extend further credit to you. The smarter move would have been to apply for a balance transfer card from another bank - Chase Slate, for example - who would only have rating agency data.

Finally, what motivation does Citi have to let you transfer your higher interest balance to a lower interest card? All that does for them is lose them money. I wouldn't have approved your card in the first place, if you had applied with me (and if I was a card issuer, which I'm not).
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
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jly
 
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Postby jly » Mon Jul 08, 2013 3:49 pm

djrez4 wrote:
Finally, what motivation does Citi have to let you transfer your higher interest balance to a lower interest card? All that does for them is lose them money. I wouldn't have approved your card in the first place, if you had applied with me (and if I was a card issuer, which I'm not).



That's what I considered after I applied. I checked my rating on privacy guard, and my scores dropped to around 700 from about 740. I believe my credit to debt is main reason. I would like to apply with another company, but I hate to do that so soon.

MemberSince99
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Postby MemberSince99 » Mon Jul 08, 2013 4:10 pm

Well if you were a card issuer, would you do something really cool like say a "Titanium with emeralds" card or something?

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djrez4
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Postby djrez4 » Mon Jul 08, 2013 8:29 pm

MemberSince99 wrote:Well if you were a card issuer, would you do something really cool like say a "Titanium with emeralds" card or something?


I think we have different ideas of "really cool," but if I felt that I could attract enough customers and make a profit with a "Titanium with emeralds" card, I'd issue it.
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MemberSince99
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Postby MemberSince99 » Mon Jul 08, 2013 8:41 pm

djrez4 wrote:I think we have different ideas of "really cool," but if I felt that I could attract enough customers and make a profit with a "Titanium with emeralds" card, I'd issue it.


Fair enough.

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Postby Calipso » Thu Jul 11, 2013 8:10 pm

To the OP,

I have six cards with Chase. I have four cards with Citi. I have four cards with American Express.

What do you think my answer will be?
My Limits:
NFCU NavCheck: $15,000/NFCU Platinum: $11,500/NFCU nRewards: $8,000
Chase Freedom: $6,500/Chase Slate: $6,000/CSP: $5,000/Marriott Rewards Primier: $5,000/United MileagePlus Explorer: $5,000/Southwest Primier: $3,000
Citi Hilton HHonors: $9,700/Citi Simplicity: $8,200/Citi Forward: $5,500
AMEX Blue Cash Everyday: $8,000/SPG AMEX: $5,000/AMEX Everyday: $5,000/AMEX Delta Skymiles Platinum: $3,400
Discover IT: $7,700
Barclay's NFL Extra Points (Carolina Panthers): $5,000
DCU Platinum: $3,000
RTN FCU CC: $2,000
CCCU Platinum Rewards Visa: $2,000

Current total limit: $129,500



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