Bank want to link savinngs account with increase in CC limit
May 10th 2016, 9:36 am
#1
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Joined: Dec 2011
Posts: 982
Bank want to link savinngs account with increase in CC limit
Because we are travelling to the USA in September, I applied for a second Credit Card from my bank just to covered for car hire and hotel check-in needs, despite both being fully paid for in advance as I know in the USA much store is placed upon a valid and credit worthy CC. As I have a Mastercard I applied for a a Visa.
My "personal manager" at the bank responded by saying that I would need "insurance" in the form of a separate savings account.
As an alternative option, last week I went to my banking online service and applied for an increase in my current CC's limit for one month only.
I must state that I have sufficient funds and more in my current account to cover any increased in the CC limit.
Of course and perhaps inevitably nothing works simply online and I was told that my local office would contact me. Today I received an email asking for an appointment as I would need to open a " deposit/savings plan" for the period of the increase in limit after which the limit would return to its normal level and presumably, although I don't know, the savings account would be closed and I would withdraw my money.
Anyone had experience of this as I'm just wary that it is a way of getting me to open a savings plan which would be in effect a financial product?
I just don't trust banks' motives.
Comments or advice please?
Thanks.
My "personal manager" at the bank responded by saying that I would need "insurance" in the form of a separate savings account.
As an alternative option, last week I went to my banking online service and applied for an increase in my current CC's limit for one month only.
I must state that I have sufficient funds and more in my current account to cover any increased in the CC limit.
Of course and perhaps inevitably nothing works simply online and I was told that my local office would contact me. Today I received an email asking for an appointment as I would need to open a " deposit/savings plan" for the period of the increase in limit after which the limit would return to its normal level and presumably, although I don't know, the savings account would be closed and I would withdraw my money.
Anyone had experience of this as I'm just wary that it is a way of getting me to open a savings plan which would be in effect a financial product?
I just don't trust banks' motives.
Comments or advice please?
Thanks.
May 10th 2016, 5:26 pm
#2
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Joined: Apr 2007
Posts: 2,675
Re: Bank want to link savinngs account with increase in CC limit
Look at it from the bank's point of view - they need additional collateral to protect themselves if they are effectively doubling your credit limit. It may also have something to do with ensuring that your credit score/creditworthiness is sufficient for the additional potential debt.
Seems reasonable to me.
Seems reasonable to me.
May 10th 2016, 5:51 pm
#3
BE Enthusiast
Thread Starter
Joined: Dec 2011
Posts: 982
Re: Bank want to link savinngs account with increase in CC limit
Look at it from the bank's point of view - they need additional collateral to protect themselves if they are effectively doubling your credit limit. It may also have something to do with ensuring that your credit score/creditworthiness is sufficient for the additional potential debt.
Seems reasonable to me.
Seems reasonable to me.
