Credit approval for Visa/MC check cards?

[randian]

WTF is up with that? I've been to a bunch of bank sites and most say they want credit approval for these. These are glorified debit cards, not credit lines. Why would a bank care what your credit rating is?

[justbroke]

Because they are still dangerous and the bank can actually lose money easily! My bank allows me to "soft" overdraw on my debit card to the tune of $1,000 (I have a credit card backing it). I know other banks allow $100-$200 overdraws -- or even more -- on debit cards that don't have any overdraft protection.

These checking account tied debit cards are "more" powerful than a prepaid (or stored value) debit card. So much so, that most car rental companies allow you to rent a car with a "check" card and never for a prepaid debit card.

For what it's worth, the only thing they are really checking is your Chex Systems, TeleCheck, or some other check reporting agency. You'd probably need to have a credit score (from traditional trade lines) less than 500 for them to deny a check card.

[IBroke]

These cards can indeed be "dangerous" for the banks. You can actually spend far more than your account-balance on it - even though the bank didn't approve it. How can that happen? Well, one way would be using the card out of state as credit card. Let's say you have $500 available on your account. You could actually spend that money several times before the initial transaction hits the account and there you have it - a debit card could have caused a huge overdraw.

[onthefence]

For what it's worth, the only thing they are really checking is your Chex Systems, TeleCheck, or some other check reporting agency. You'd probably need to have a credit score (from traditional trade lines) less than 500 for them to deny a check card.

This was not the case for me! I was denied a check card for a checking account based on my CH 7 BK - they pulled my credit report and the bk was actually listed this as a reason why they would not approve the check card. And my EQ score at the time was 638 (that was the report they pulled)!

[justbroke]

This was not the case for me! I was denied a check card for a checking account based on my CH 7 BK - they pulled my credit report and the bk was actually listed this as a reason why they would not approve the check card. And my EQ score at the time was 638 (that was the report they pulled)!

Unbelievable! Some banks will find any reason to deny credit. I have had absolutely no problems with my BK on record, and opening accounts -- with check cards -- at major banks including Chase.

As for a credit union, that's another story. Many credit unions will deny all sorts of things, including membership, for something as simple as bankruptcy.

[Amy26]

Yea, that's why I love my NavChek from Navy... its a hidden trade line on my credit report because apparently if you have a joint one they do not report it to the bureaus...so I have a 5,000 line of credit just sitting there tied to my checking account. So, its kinda comforting to know that if I screw up or go short one time it just automatically taps into that... and it will never report.

[IBroke]

Unbelievable! Some banks will find any reason to deny credit.

BK was the reason BoA denied me a 100% secured CC - although they are marketing this card to (re)build credit. Too bad you need to have great credit for BoA to grant you a chance to rebuild it in the first case. In case you didn't get it - don't worry: Neither did I...

Before I filed for BK, I went to a small CU and asked for a secured installment-loan which is absolutely risk-free for the CU. They denied it because they would have to open a checking-account first in order to issue a loan. That was denied due to my bad credit - my CHEX-record was spotless. Fortunately, the other CU I'm currently with was not that picky. Today, I got my second secured loan with them. The first ($1,000) was paid off pre-BK and the one I obtained today was for $4,000. It took me 3 minutes and I didn't even have to sign anything or fill out a form due to my previous loan.

[Amy26]

Grats! It really is stupid how credit works in this country I really hate it... course, maybe on December 21, 2012 we won't have to worry about it anymore. :P

[IBroke]

Grats! It really is stupid how credit works in this country I really hate it... course, maybe on December 21, 2012 we won't have to worry about it anymore. :P

If one thing is going to live on 'til eternity, it's going to be my derog. entries on my credit-report...

[Amy26]

If one thing is going to live on 'til eternity, it's going to be my derog. entries on my credit-report...

Yea, but its like the tree in the woods theory... if nobody is around to see it... does it really exist?

[justbroke]

Just remember, the big banks aren't everything! I obtained a secured (now unsecured) card from my bank (regional) 2 weeks after discharge.

[scorpion35]

Unbelievable! Some banks will find any reason to deny credit. I have had absolutely no problems with my BK on record, and opening accounts -- with check cards -- at major banks including Chase.

As for a credit union, that's another story. Many credit unions will deny all sorts of things, including membership, for something as simple as bankruptcy.

PATELCO CU is one of them

[randian]

Does Alliant Credit Union (http://www.alliantcreditunion.org) deny new memberships to people who have filed BK?

[nokia123]

Yea, that's why I love my NavChek from Navy... its a hidden trade line on my credit report because apparently if you have a joint one they do not report it to the bureaus...so I have a 5,000 line of credit just sitting there tied to my checking account. So, its kinda comforting to know that if I screw up or go short one time it just automatically taps into that... and it will never report.

I'm jealous....lol that's nice.

[Amy26]

Does Alliant Credit Union (http://www.alliantcreditunion.org) deny new memberships to people who have filed BK?

I don't think so. I have applied to like 6 credit unions since discharge and have never been denied for any of them (alliant being one of them). I think as long as you have a clean chexsystems record and things like that you should be fine. I also have an unsecured CC from alliant.