Announcement

Collapse
No announcement yet.

Two credit cards through one bank?

Collapse
This topic is closed.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Two credit cards through one bank?

    Is there is any kind of potential problem or risk if I have only two
    credit cards, and both of them are issued through the same underlying
    bank? (In other words, one might be from my favorite airline, to get
    frequent flyer miles, and the other from my favorite bookstores, but
    both of them are really controlled by XYZ National bank.)

    I have no idea what kinds of issues I'm even looking for, so I don't
    know how to frame this as anything other than a general question, but
    I'd appreciate leads for any possible areas of concern.

    Thanks!

    Steve O.



    Steven AATT Domain DDOOTT com
    To send an e-mail, substitute @ for AATT, a . for DDOOTT, and OpComm for Domain

  • #2
    Two credit cards through one bank?

    "Steven O." <[email protected]> wrote...
    Is there is any kind of potential problem or risk if I have only two credit cards, and both of them are issued through the same underlying bank?
    None beyond the bank's terms & conditions. MBNA, for example, is more
    onerous than your local credit union...


    Comment


    • #3
      Two credit cards through one bank?

      On Thu, 24 Jun 2004 19:27:16 GMT, Steven O. <[email protected]> wrote:
      Is there is any kind of potential problem or risk if I have only twocredit cards, and both of them are issued through the same underlyingbank? (In other words, one might be from my favorite airline, to getfrequent flyer miles, and the other from my favorite bookstores, butboth of them are really controlled by XYZ National bank.)I have no idea what kinds of issues I'm even looking for, so I don'tknow how to frame this as anything other than a general question, butI'd appreciate leads for any possible areas of concern.Thanks!Steve O.
      in the past I've had 2 cards from the same bank and 3 from one issuer,
      never a problem except when 1 bank decided to convert a visa to a
      master card without telling me and fouled up my bookkeeping



      ---------------------------------------------------------------------------
      Because of the current email spam attacks my email account is not included,
      reply via the newsgroups or ask for a valid email address.

      Comment


      • #4
        Two credit cards through one bank?

        "Steven O." <[email protected]> wrote in misc.consumers:
        Is there is any kind of potential problem or risk if I have only twocredit cards, and both of them are issued through the same underlyingbank?
        I can't see why. I have a Visa and a MasterCard from Universal Bank
        (which is part of Citigroup). The only risk I see is that if
        Universal suddenly decides I'm a bad risk I'll lose both credit
        cards at once. I've managed to sleep nights despite that. :-)

        There's much greater risk in having a credit card with a bank where
        you have substantial deposits. Most banks give themselves the right
        in their account rules to seize your deposit to pay an amount you
        owe. So if they screw up your credit-card account, they could grab
        your savings.

        --
        Stan Brown, Oak Road Systems, Cortland County, New York, USA
        http://OakRoadSystems.com/
        "If you raise three children who can knock out and hog-tie a
        perfect stranger, you must be doing something right."

        Comment


        • #5
          Two credit cards through one bank?

          On Thu, 24 Jun 2004 19:27:16 GMT, Steven O. <[email protected]> wrote:
          I have no idea what kinds of issues I'm even looking for, so I don'tknow how to frame this as anything other than a general question, butI'd appreciate leads for any possible areas of concern.
          I have a Master Card and a VISA card issued by MBNA even they keep
          sending me repeated solicitations for more credit cards, they will
          allow you to have one credit card account for each variety!

          Comment


          • #6
            Two credit cards through one bank?

            Steven O. <[email protected]> wrote:
            Is there is any kind of potential problem or risk if I have only twocredit cards, and both of them are issued through the same underlyingbank? (In other words, one might be from my favorite airline, to getfrequent flyer miles, and the other from my favorite bookstores, butboth of them are really controlled by XYZ National bank.)I have no idea what kinds of issues I'm even looking for, so I don'tknow how to frame this as anything other than a general question, butI'd appreciate leads for any possible areas of concern.
            Only one potential problem for deadbeats. If you carried balance on
            both cards and became delinquent on one of them, the bank will
            promptly raise interest rate on the other card as well.

            Comment


            • #7
              Two credit cards through one bank?

              On Sat, 26 Jun 2004 14:59:49 -0400, Andrew White
              <[email protected]> wrote:
              Steven O. <[email protected]> wrote:
              Is there is any kind of potential problem or risk if I have only twocredit cards, and both of them are issued through the same underlyingbank? (In other words, one might be from my favorite airline, to getfrequent flyer miles, and the other from my favorite bookstores, butboth of them are really controlled by XYZ National bank.)I have no idea what kinds of issues I'm even looking for, so I don'tknow how to frame this as anything other than a general question, butI'd appreciate leads for any possible areas of concern.
              Only one potential problem for deadbeats. If you carried balance onboth cards and became delinquent on one of them, the bank willpromptly raise interest rate on the other card as well.
              CC companies can raise rates if they find you're delinquent on ANY of
              your accounts who may have ANYWHERE, so I see no potential problem
              here.

              Comment


              • #8
                Two credit cards through one bank?

                "Andrew White" <[email protected]> wrote in
                misc.consumers:
                Only one potential problem for deadbeats. If you carried balance onboth cards and became delinquent on one of them, the bank willpromptly raise interest rate on the other card as well.
                These days that's quite likely true even if you are delinquent on a
                card at ANOTHER bank.

                Of course, the right way to use a credit card is to pay off the
                whole balance every month. My interest rate might be 85%; I don't
                know or care.

                --
                Stan Brown, Oak Road Systems, Cortland County, New York, USA
                http://OakRoadSystems.com/
                "If you raise three children who can knock out and hog-tie a
                perfect stranger, you must be doing something right."

                Comment


                • #9
                  Two credit cards through one bank?

                  The Etobian <[email protected]> wrote:
                  On Sat, 26 Jun 2004 14:59:49 -0400, Andrew White<[email protected]> wrote:
                  Steven O. <[email protected]> wrote:
                  Is there is any kind of potential problem or risk if I have only twocredit cards, and both of them are issued through the same underlyingbank? (In other words, one might be from my favorite airline, to getfrequent flyer miles, and the other from my favorite bookstores, butboth of them are really controlled by XYZ National bank.)I have no idea what kinds of issues I'm even looking for, so I don'tknow how to frame this as anything other than a general question, butI'd appreciate leads for any possible areas of concern.
                  Only one potential problem for deadbeats. If you carried balance onboth cards and became delinquent on one of them, the bank willpromptly raise interest rate on the other card as well.
                  CC companies can raise rates if they find you're delinquent on ANY ofyour accounts who may have ANYWHERE, so I see no potential problemhere.
                  For God's sake, do I really need to state the obvious??? THE OTHER
                  BANKS WOULD NOT KNOW ABOUT THE DELINQUENCY unless you give them a
                  reason to spend money on a credit report on you. They DON'T routinely
                  do that for existing customers.

                  Comment


                  • #10
                    Two credit cards through one bank?

                    On Sat, 26 Jun 2004 20:51:18 -0400, Andrew White
                    <[email protected]> wrote:
                    The Etobian <pd[email protected]> wrote:
                    On Sat, 26 Jun 2004 14:59:49 -0400, Andrew White<[email protected]> wrote:
                    Steven O. <[email protected]> wrote:>Is there is any kind of potential problem or risk if I have only two>credit cards, and both of them are issued through the same underlying>bank? (In other words, one might be from my favorite airline, to get>frequent flyer miles, and the other from my favorite bookstores, but>both of them are really controlled by XYZ National bank.)>>I have no idea what kinds of issues I'm even looking for, so I don't>know how to frame this as anything other than a general question, but>I'd appreciate leads for any possible areas of concern.Only one potential problem for deadbeats. If you carried balance onboth cards and became delinquent on one of them, the bank willpromptly raise interest rate on the other card as well.
                    CC companies can raise rates if they find you're delinquent on ANY ofyour accounts who may have ANYWHERE, so I see no potential problemhere.
                    For God's sake, do I really need to state the obvious??? THE OTHERBANKS WOULD NOT KNOW ABOUT THE DELINQUENCY unless you give them areason to spend money on a credit report on you. They DON'T routinelydo that for existing customers.
                    Amex did exactly that to me 2 months ago. Out of nowhere, I got notice
                    that I was going from 12.9% Fixed to Prime+13.99%. They told me it was
                    due to late payments on my credit, even though the last late payment
                    on my report is almost a year old.

                    So I transferred the balance to another card...

                    -Martin O'B

                    Comment


                    • #11
                      Two credit cards through one bank?

                      On Sat, 26 Jun 2004 20:51:18 -0400, Andrew White
                      <[email protected]> wrote:
                      For God's sake, do I really need to state the obvious??? THE OTHERBANKS WOULD NOT KNOW ABOUT THE DELINQUENCY unless you give them areason to spend money on a credit report on you. They DON'T routinelydo that for existing customers.
                      Dead WRONG. Most credit card issuers and other creditors routinely
                      review the credit reports of existing customers, as often as monthly
                      or more in some cases.

                      -SC
                      --
                      Stanley Cline -- sc1 at roamer1 dot org -- http://www.roamer1.org/
                      ....
                      "Never put off until tomorrow what you can do today. There might
                      be a law against it by that time." -/usr/games/fortune

                      Comment


                      • #12
                        Two credit cards through one bank?

                        In article
                        <[email protected]>,
                        [email protected] says...
                        On Sat, 26 Jun 2004 14:59:49 -0400, Andrew White <[email protected]> wrote:
                        Only one potential problem for deadbeats. If you carried balance onboth cards and became delinquent on one of them, the bank willpromptly raise interest rate on the other card as well.
                        CC companies can raise rates if they find you're delinquent on ANY of your accounts who may have ANYWHERE, so I see no potential problem here.

                        They can also raise your interest rate simply because
                        they see large debt balances on other credit cards.
                        They are concerned with the consumer's/cardholder's
                        overall ratios of debt-to-total-available-credit, and
                        debt-to-income.

                        --
                        Get Credit Where Credit Is Due
                        http://www.cardreport.com/
                        Credit Tools, Reference, and Forum

                        Comment


                        • #13
                          Two credit cards through one bank?

                          In article
                          <[email protected]>,
                          [email protected] says...
                          The Etobian <[email protected]> wrote:
                          CC companies can raise rates if they find you're delinquent on ANY ofyour accounts who may have ANYWHERE, so I see no potential problemhere.
                          For God's sake, do I really need to state the obvious??? THE OTHER BANKS WOULD NOT KNOW ABOUT THE DELINQUENCY unless you give them a reason to spend money on a credit report on you. They DON'T routinely do that for existing customers.

                          Yes, they WOULD know about the delinquency. Many
                          banks, credit card issuers, and other creditors
                          periodically request a credit report on their
                          customers, just for that purpose.

                          If you get a copy of your own credit report, you may
                          find inquiries that are designated as something like,
                          "monitoring" from your current creditors (those
                          inquiries are *not* seen by prospective new creditors
                          when you apply.)

                          The benefit of these reviews is that it can encourage a
                          bank to increase your credit limit, or reduce your
                          interest rate, if they overall general good behaviour.

                          Some banks will just check when your credit card is due
                          for renewal soon, some check once per year, and some
                          will even do it every month.

                          --
                          Get Credit Where Credit Is Due
                          http://www.cardreport.com/
                          Credit Tools, Reference, and Forum

                          Comment


                          • #14
                            Two credit cards through one bank?

                            "Andrew White" <[email protected]> wrote in
                            misc.consumers:
                            For God's sake, do I really need to state the obvious??? THE OTHERBANKS WOULD NOT KNOW ABOUT THE DELINQUENCY unless you give them areason to spend money on a credit report on you. They DON'T routinelydo that for existing customers.
                            Ah yes -- shouting to cover up the fact that you don't know what
                            you're talking about, and haven't even read the related threads in
                            this very newsgroup. What a surprise!

                            It's not universal, but it is quite common now for cardholder
                            agreements to let the issuing bank up the interest rate based on any
                            negative change in the cardholder's credit record.

                            --
                            Stan Brown, Oak Road Systems, Cortland County, New York, USA
                            http://OakRoadSystems.com/
                            "If you raise three children who can knock out and hog-tie a
                            perfect stranger, you must be doing something right."

                            Comment


                            • #15
                              Two credit cards through one bank?

                              "Stanley Cline" <[email protected]> wrote in misc.consumers:
                              On Sat, 26 Jun 2004 20:51:18 -0400, Andrew White<[email protected]> wrote:
                              For God's sake, do I really need to state the obvious??? THE OTHERBANKS WOULD NOT KNOW ABOUT THE DELINQUENCY unless you give them areason to spend money on a credit report on you. They DON'T routinelydo that for existing customers.
                              Dead WRONG. Most credit card issuers and other creditors routinelyreview the credit reports of existing customers, as often as monthlyor more in some cases.
                              No wonder finance charges are so high! I'm sure credit reports don't
                              cost the banks anything near what they cost us, but still for a few
                              hundred thousand accounts the monthly cost has to be significant.

                              --
                              Stan Brown, Oak Road Systems, Cortland County, New York, USA
                              http://OakRoadSystems.com/
                              "If you raise three children who can knock out and hog-tie a
                              perfect stranger, you must be doing something right."

                              Comment

                              Working...
                              X