Yes, and this applies to much more than just CCās. For example on a loan donāt keep excess cash/assets at a bank you carry a loan with. I have a large commercial loan with WF and as part of the deal commitment they required me to have a business checking account with them for auto-draft of the loan payments (and Iām sure in hopes they thought weād do a whole lot more with it).
Naturally my actual checking activities are elsewhere, so just transferring in enough monthly to pay the loan and that is allā¦
As mentioned by others, the best cards from BoA require keeping $100,000+ in assets with BoA/Merrill in order to qualify for the Platinum Honors boost of the preferred rewards program.
I also keep my Landlord/Tenant account there to hold security deposits. The balance counts towards my assets for preferred rewards. The account lists my tenants as beneficiaries (e.g. for ownership in case of my own bankruptcy, the interest is attributed to the tenants, etc). Iām pretty sure BoA would be in huge trouble if they seized those assets for my own debts.
In any case, I split my credit card usage into two/three categories:
Rewards cards that I pay off every month.
Balance Transfer deals that I used for unsecured loans.
Travel cards that I keep for some other benefit (E.g. IHG card $49 annual fee gets a free night anywhere, airline cards with free baggage allowances and companion tickets).
So thereās little danger to my assets from my credit cards where Iām not keeping any balances. Iād maybe qualify this concept as āDonāt keep cash/assets at banks that you keep large balances on credit cardsā.
My credit lines are about the same on all my credit cards that arenāt store specific. My Discover credit line is $3000 less than my other credit lines. I donāt have any other banking relationship with Discover. Itās my oldest credit line.
Not just for deadbeats. If someone is a joint account holder (say on an elderly parents account for convinience sake) and they die before the parent leaving unpaid credit card bills, there goes the parents life savingsā¦
Iām not a lawyer but the Penfed language certainly sounds like an attempt to have the entire joint account be considered as having been pledged as security retroactive to the date of death. Itās certainly possible that the entire account would be at risk even in states that would grant half of the jointly held account to creditors by defaultā¦
Iām not a lawyer either. It looks like thereās a conflict in that language. If state law says that a joint tenant owns 50% of the āsharesā, then Penfed couldnāt legally attach more than that to satisfy the debt. For practical purposes, a joint tenant has access to 100% of the āfunds available toā them, so it sounds like Penfed thinks they can attach 100% of the money.
The real question is, on the date of death, how much of the funds are available to the deadbeat?
Does the language mean that if you miss a payment by a day you are technically in default and they can use the terms to seize your bank account to pay off the entire outstanding balance? That would be pretty lousy if you are floating a 0% aprā¦
Still not right, quaters. CapOne doesnāt extend mfg warranty by 12 months, they double warranties by up to 1 year on warranties of 3 years or less. I.e. a 7-mo warranty becomes 14-mo, 12-mo becomes 24-mo, but 36-mo becomes 48.
Citi adds 2 years regardless of mfg warranty, so 7-mo becomes 31-mo.