Aug 8 (edited) • General discussion
Have a Relationship from Banks You Are Targeting for Credit Lines
It pays to have a relationship from banks you are targeting for credit lines. Many banks and other financial institutions utilize “internal credit scores” in addition to the traditional credit scores from credit bureaus (like FICO or VantageScore) to evaluate the creditworthiness of their current clients.
Comprehensive view: While credit bureau scores provide a general assessment of credit risk, banks can gain a more holistic and in-depth understanding of a client's financial health by incorporating their own internal data and insights.
Behavior scores: Internal scoring models, sometimes called "behavior scores," leverage the bank's own data on a client's banking behavior, transaction history, loan repayment patterns within that institution, and more.
Benefits for existing clients: These internal scores can be particularly valuable for managing existing accounts, determining credit limit increases, and offering relevant financial products (like mortgages, credit lines, or auto loans) to current customers based on their demonstrated financial behavior with that specific institution.
Faster and more personalized decisions: By using internal data, banks can potentially make more timely and tailored lending decisions, especially when combined with alternative data sources and machine learning techniques.
In essence, while traditional credit scores provide a general guideline, banks utilize internal credit scores to refine their risk assessments and offer more targeted financial solutions to their existing client base.
If you have a personal checking account, savings account, or personal credit card in good standing with your targeted bank before applying you will probably get higher credit line offers.
Tip: Don’t apply online. Go to a local branch and meet with a Business Relationship Manager (BRM). Form a relationship. You receive higher credit lines with your BRM than online.
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Have a Relationship from Banks You Are Targeting for Credit Lines
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