You and many other consumers may sometimes ask the question “Should credit cards be kept separate from other banking services?” as in, should my credit issuer be someone other than my routine bank.
The answer to this is a resounding no. Or yes, depending on which side of the issue you tend to look upon.
Reasons Credit Cards Should Not be Separate
Sometimes a credit card applicant may not have a totally perfect credit record. If you are applying to a bank that knows you well and already has your home mortgage or a history of other consumer loans with you, they may overlook a slip up or two that a stand alone credit card issuer may not. Should credit cards be kept separate from other banking services in this instance may mean that instead of a credit card, you may end up with a rejection. In the case of the bank that you do business with on a routine basis, you often know the banker. He often knows the reasons your payments have not always been on time and looks at you on a more human level. There may be things in your credit history that a stand alone card issuer may run from, while your bank may feel it can be overlooked. Should credit cards be kept separate from other banking services, you will miss this personal touch, and become merely a FICO score to the stand alone credit source. If applying for a credit card with a credit union that you already do business with,the question of should credit cards be kept separate from other banking services receives an even louder no. They too know you as an individual, and may extend credit to you even when a stand alone card issuer will not. You also have the advantage at a credit union of appealing your local branch’s decision to a board should you need to. Another factor in your decision may be the ease that an automatic payment for your card can be set up with the bank you already do business with. This can keep you from having late payments, thereby preserving your credit rating. You also may get a better rate on your card, as some lending institutions have packages in which the interest rate is reduced if you have more than one account with them.
Why Credit Cards Should Be Separate From Other Banking Services
Should credit cards be kept separate from other banking services, you will not have money sent from one account to another on short notice and without your knowledge. Yes, this contradicts the idea above about having your payment automatically deducted. Still, it is something that should be considered. Another reason that you should keep your credit cards separate is that the bank you do business with may look on you as taking your credit passively and may not want to extend any further credit to you. Here a stand alone card issuer may be more liberal. Those are the reasons, both pro and con. Should credit cards be kept separate from other banking services? That is a question you will have to answer for yourself after weighing the good and the bad.
