Here's a new twist from the credit card industry! When a Wells Fargo credit card customer was rejected for a balance transfer earlier this month, the bank cited the following reasons in its "adverse action" letter:
- Total monthly payments due for open bankcard accounts on credit report is too high
- The average Wells Fargo Bank collected demand deposit balance in the last 3 months is too low
- Lack of checking account relationship with Wells Fargo
- The payment as compared to the amounts due on your credit card account in the last 3 months is too low
So… none of that is readable to normal humans. Let's try to translate:
- The minimum payments for your credit cards add up to an amount that is too high.
- This one is rough. "Demand deposit" usually means a checking or savings account. I'm guessing they mean that you don't have enough automatically depositing into a savings account?
- You don't have a checking account with Wells Fargo. This point is clear, but requiring this sort of relationship is highly unusual behavior for a credit card.
- You are not paying a large enough amount on your credit card each month. They want you to be paying more than the minimum.
Have you recently been turned down by Wells Fargo or another bank? Did they say that not having a checking account with the bank was a factor in the rejection? If so, we want to hear from you! Send our team an email or post your comments below.