Credit Cards

[johnsj21]

So I just app'd for Discover and was declined   However I was approved for the Direct Rewards Discover card through HSBC.  I did a search on this card on the boards, but there hasn't been any discussions on this card lately.  I don't even know my CL on this card yet so I am curious.  There is a $39 annual fee and 0% interest for the first 6 months, but I have no idea on starting CL's. 

I checked out Whogavemecredit.com and that wasn't too much help either.

[txjohn]

HSBC backs many subprime or less than prime cards, such as Orchard and the HSBC Discover.

Initial CL's tend to be low ($500) and tend not to grow much over time.  They usually have AF and rarely, if ever, graduate to anything more than they started. 

Your CR will not have any evidence that you have a Discover card, since the TL will be HSBC.  The only thing it has in relationship to Discover is that it uses the Discover Financial Network, has the Discover icon on it and will have an account number which begins with the number 6, like all Discover cards.

Other than that, this isn't really any different than an Orchard Visa.  It's a builder card that will help you get better prime TL's down the road once you show your responsible use and payment of this and other current accounts over time.

[jackg]

Also, because it is a Discover network card it cannot be used at a retailer that does not accept Discover & there are quite a few because of the high % use fee charged to the retailer.

[FretlessMayhem]

I got this card under the same circumstances, and I guess I would say it was mediocre at best. AF, high interest rate (not that it mattered with PIF), $300 CL, and no CLI ever.

If you want to have a Discover card in your wallet, I recommend the Sams Club/Wal Mart Discover by GEMB over this one any day of the week. 

[llecs]

DW and I both app'd for a Discover back in December. We each were countered-offered this CC and regretfully we accepted. We had read others' posts that the starting limits were $1000-$3000+. Ours started each with $300. Woohoo! The APR was set each at 21.99%. I think I used mine twice. DW uses for fluff, but both are PIF. I regret it, but can't change the past.

7 months later, had I patiently waited, I was approved for a Discover More. Oh well. Hindsight.

[creditwherecreditisdue]

HSBC seems to have become very stingy with the limits on this card. They also do seem to be using this co-branding program as a way to funnel the unsuspecting applicant into an Orchard/Household type product. I have no idea why DFS is allowing the brand "Discover" to be cheapened like this. The products do not compare at all. The Discover cards issued by DFS are prime to prime plus cards, offer nice growth potential and a decent, but not great, rewards program. HSBC Discover offers none of that.

If you get a co-branded AMEX at least you get some AMEX benefits along with it.

[johnsj21]

Thanks for the replies!  I guess I'll wait until the card comes in the mail to see the CL.  If it's under $750 I'll be closing this faster that you can say "HSBC Sucks!"

[creditwherecreditisdue]

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johnsj21 wrote:
Thanks for the replies!  I guess I'll wait until the card comes in the mail to see the CL.  If it's under $750 I'll be closing this faster that you can say "HSBC Sucks!"

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I wouldn't even think about closing it unless you can get them to remove that AF from your account. If they won't do that use it for a year and then cancel it. You have to use it once a quarter, too. HSBC had been known close accounts w/o notice when disused for three months.