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At what score to dump subprime cards?

Frequent Contributor

At what score to dump subprime cards?

I've seen some FICO scores not much higher than mine with prime cards, but have also seen 700s not able to get prime cards..so at what score level is it realistic to close rebuilders/builders?

Just curious, a a mortgage is first for us..then refinancing vehicles and "remodeling" our wallets!

Starting Score: 492 02/12
Current Score: TU: 668 (FICO), EQ: 668 (FICO). EX: 651(lender pull 9/27/12)
Goal Score: 660



Message 1 of 23
22 REPLIES
Established Contributor

Re: At what score to dump subprime cards?

I was able to qualify for entry-level prime cards once my FICOs reached the 650 level.  Then, I closed my sub-prime cards if they wouldn't waive the AF.  The most important thing was to make sure that utilization wouldn't be affected.  It's a good feeling to get rid of the bottom-of-the-barrel cards.


Starting Score: TU: 566
Current Score: TU: 741 (Discover FICO); EQ: 755 (MyFico) EX: 774 (FAKO)
Goal Score: 800

Take the FICO Fitness Challenge
Message 2 of 23
Established Contributor

Re: At what score to dump subprime cards?

I did it when I hit the 700s. It help me achieve higher credit line increases and better cards.
Experian® 808/Equifax® ?/TransUnion® 810
Baddies Experian® clean/Equifax® 1/TransUnion® Clean
Last CLI 6-13-2013
Total Credit $121,190.00
Goal 780!
Message 3 of 23
Valued Contributor

Re: At what score to dump subprime cards?

What are prime cards? Just cards with no annual fee?
Like a list of prime cards vs sub prime?
Current: Discover Fico 709 3/15 Walmart Fico 743 4/15

Inquiries (24 Months): EQ 6 TU 1 EX 6 | Most Recent: 4/09/2015
Over 12 Months:9


2015 Goals:
Lower Utility
Earn Cash Back

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$7,400
Citi DC $10,000
Citizens Mastercard$7,000
Message 4 of 23
Contributor

Re: At what score to dump subprime cards?

Once I had some history with the sub prime cards and my score went to mid 600's

Message 5 of 23
Frequent Contributor

Re: At what score to dump subprime cards?

Oleg, I think subprime are like first premier, merrick, some capital one cards, credit one, etc. interest rates suck on these...and so do credit limits..

Starting Score: 492 02/12
Current Score: TU: 668 (FICO), EQ: 668 (FICO). EX: 651(lender pull 9/27/12)
Goal Score: 660



Message 6 of 23
Regular Contributor

Re: At what score to dump subprime cards?


JPersat wrote:
I've seen some FICO scores not much higher than mine with prime cards, but have also seen 700s not able to get prime cards..so at what score level is it realistic to close rebuilders/builders?


If your score is really around 610 as indicated in your sig I don't know if that's primeville.

 

Starting Score: EX: 736 FAKO | TU: 757 FICO | EQ 730 FICO
Current Score: EX: 736 FAKO | TU: 750 FICO | EQ 730 FICO
Goal Score:     EX: 750 FICO | TU: 750 FICO | EQ: 750 FICO
In my wallet:  $16,000  $8,000
Message 7 of 23
Established Contributor

Re: At what score to dump subprime cards?

You should have a FICO of 680 to 720 for prime cards
Experian® 808/Equifax® ?/TransUnion® 810
Baddies Experian® clean/Equifax® 1/TransUnion® Clean
Last CLI 6-13-2013
Total Credit $121,190.00
Goal 780!
Message 8 of 23
Moderator Emeritus

Re: At what score to dump subprime cards?


Smug wrote:
You should have a FICO of 680 to 720 for prime cards

I agree...  Fico = 680+  to get prime cards such as Discover, Chase Freedom,

 

 

Amex revolver...  You need probably a 700 but that's hard to say because they go more by income and assets

 

 


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



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Message 9 of 23
Contributor

Re: At what score to dump subprime cards?

First Premier, Matrix, Credit One and Merrick are your bottom feeders.  The limits are ridiculously low and the APR and monthly fees are atrocious.  They are for someone who can't do any better, even with a secured card.

 

Just as being middle class has a gradient, so does subprime.  Annual fee alone doesn't determine whether the card is prime or not.  The Visa Signature Black by Barclay's has a $495 annual fee.  And WE CRY about Continental Finance and the $75 annual fee and $12 monthly maintenance fee.  $219 is still cheaper (although the APR is 30%)

 

Prime cards offer either generous credit limits, or a prestige (ex: Chase Sapphire or AMEX) for high FICO (bare minimum 680) scores. 

Ultra prime cards are for the 760 and above club.  Diner's Club, Black card, Amex Platinum.

At the bottom under prime is near prime: 660 - 700.  This is where you start seeing decent rates, no annual fee.

Subprime is below 650.  Capital One is in this range.  Capital One is great because they have cards also for near prime and even the lower levels of prime.

Bad credit is below 620.  Rebuilder cards are in this category

Below 580 are the bottom feeder cards.  First Premier, Credit One and Matrix.  You get these when you do not qualify for anything else, even secured.

 

My NFCU secured card for example has rewards and a 15% APR plus no annual fee.  That is a rate most people get in near prime (why I LOVE NFCU).  My Cap1 has an APR of 22.9%.  So does the Capital One Venture.  Some Cap1 cards have a 24 or 25% APR.

 

A rebuild card may have  $500 credit limit with 25% APR and a $25 annual fee.  No monthly fees (outside of interest) and other crap.  A bottom feeder will offer you $200 credit limit with $75 annual fee, $10 monthly maintenance and maybe even a $.25 per transaction fee.  First Premier offered me a card once with a 49.9% APR.  Yeah RIGHT!!!  Subprime: $1K, no annual fee, but 24-25% APR.  As the score goes up, the APR should drop into the teens.

Starting scores: EQ 420, EX 421, TU 405 (Jan 2011)
Bk Ch 7 Discharged Mar 2011
Current scores: EQ 456, EX 534, TU 411 (Aug 2012) FICO (8/2012 -- EQ 564, EX 584 (from BofA) TU 551)
Goal scores: EQ 700+, EX 700+, TU 700+

Credit accounts: 30% APR auto loan (Jan 2012), Secured [CapOne (3K), PNC (1300), NFCU (1K), Coke (2500)] and Target (200)
Message 10 of 23