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I was wondering if there is an advantage in getting a credit card from the bank that has my checking account.

Right know, I have three other credit cards that I only use in emergencies. I do not usually carry over balances, and so far I have a good credit. I do not have any outstanding balances neither.

I plan to buy a house in a year or two, and I was thinking that maybe if I have a credit card with them, it can help in giving me the best rate possible (assuming I continue with my good credit); kind of a reward for being loyal to them.

What worries me is the initial impact to my credit score. I do not know if the advantages (if any) outweighs the short-term impact to my credit score.

Is doing this move makes sense?

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The biggest advantages of having multiple accounts in a single bank are (a) it's easier and safer to use online tools to move money between accounts, and (b) it's helping to build your reputation with that particular bank, which may help if you eventually want to ask them for a loan or something else that needs approval.

Outside of that, you're basically free to shop for the option that suits your needs best. Nobody will think it odd if you have accounts spread across multiple banks.

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Getting a credit card from the same financial institutions has some benefits like keshlam pointed out.

However also note there could at times be downsides. Quite a few Banks force [mislead] you into tying this to Auto repayments. If there is a fraud on card, more often it being part of same network would recover the funds from your checking account.

My Experience [Of Course not in US]:
I had sufficient funds in checking and other investments. A medical emergency made me use credit card, I didn't mind paying interest for few days till I sorted out [liquidate investments]. However inspite of my instructions not do Auto-Debit my card due, the Bank debited my checking account as the balance on credit card was large. This meant quite a few of my other monthly payments got bounced and overall much of a hassle.

If the card account was with other Bank, there is no way they would have touched my checking account without my explicit authorization.

Hence I generally tend to keep the card account separate from other accounts.

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