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Just wondeirng. This is one of HSBC's rebuilder cards. Is this a better option than the subprime cards?
How often are CLIs and how much are those CLIs at a time?
How would an initial $250 card evolve over a period of 1 year or 2 years.
Thanks.
@nothingman02 wrote:Just wondeirng. This is one of HSBC's rebuilder cards. Is this a better option than the subprime cards?
How often are CLIs and how much are those CLIs at a time?
How would an initial $250 card evolve over a period of 1 year or 2 years.
Thanks.
Its not a great card, anything HSBC really is not great, but its a decent card. Don't expect too many CLI and too often, in fact pretty much accept that you may never get one so that you are not disappoitned. Now with a limit of only $250, you are bound to see improvement and increases but how quickly is a matter of how much you use the card and if they think they can make money off of you. So some period of heavy usage might get them to raise it quicker. In two years you could be looking at about $1500 if everything goes idealy.
Along those lines, what exactly is it that approves CLIs?
1) Utilize 70-80% and PIF before the statement cuts every month? (Demonstrating good usage and management)
2) Utilize 5-10% and PIF before the statement cuts every month? (Demonstrating less usage and good management)
3) Doing the above but leaving out 4-5% UTL and paying some interest (so the bank makes some money)?
4) Socking the card thus demonstrating no/low risk
5) Only the typical factors used when first approving the card such as DTI, FICO, derogs, etc etc..
Or any combination of the above with (5)
@nothingman02 wrote:Along those lines, what exactly is it that approves CLIs?
1) Utilize 70-80% and PIF before the statement cuts every month? (Demonstrating good usage and management)
2) Utilize 5-10% and PIF before the statement cuts every month? (Demonstrating less usage and good management)
3) Doing the above but leaving out 4-5% UTL and paying some interest (so the bank makes some money)?
4) Socking the card thus demonstrating no/low risk
5) Only the typical factors used when first approving the card such as DTI, FICO, derogs, etc etc..
Or any combination of the above with (5)
Ok, please understand that high util is NOT a way to get CLI, it just seems that recent HSBC patterns for CLI/CLD tends to revolve around high util and earned finance charges. So this was a recommendation given specifically for HSBC's current strategy model and should NOT be used globally. In fact high util is a death sentence to your credit, generally speaking. But if say you keep your overall util down and use a small credit line with HSBC at high util, they will be less likely to cut your limit and more likely to increase it. Obviously for your overall credit health, do not let a balance report if you can avoid it and HSBC takes about 5 days to process a payment regardless of what they say and that means if you want to avoid that balance reporting, then pay at least a week in advance of your cut off. Do not bother requesting a CLI with them anytime within the first year, it won't happen generally, so give it time and be patient and even after that, keep it to every 6 months at the most. Good luck.
I've had a HSBC Direct Rewards Discover card and it stinks!! I've had it since October of 2007; no lates, always PIF and hardly ever more than a 10% utilization. In October of 2008 I got the bill for the annual fee of $39 ( I think) and called their CS line to see if I could get my CL increased from their very generous $300. I was told no, they weren't giving out any CLI but they would waive the annual fee. Since then, they've cut my cash advance limit from $150 to $75. I'll be kicking this one to the curb in October of this year when they once again bill me for an annual fee and will continue to use my Target Visa, my Chase Mastercard and my AMEX (just not at Walmart. It would be interesting to see if you get the CLI and how long it takes.
To get around their hold on my money, I use my online bill pay from Chase and it is applied to my HSBC account the day after it comes out of my account.
Hmm...I dont have this card yet. I have an orchard secured and I was pre-qualified for this one on their website. I had decided not to go for it as I would have to cancel my Orchard card as its only been 3 months and HSBC will not let you have another card in 18 months. More importantly, its going to hurt my AAoA (only 2 yrs right now) and I am not in a position to be able to afford that yet. I have my eyes on a couple of the prime cards toward the end of this year and am working on that and orchard is already 3 months old. But orchard card can not grow and I am right now trying to evaluate this HSBC MC absolutely so that I would not have made a wrong decision,looking back in an year or later, in refusing it.
Thanks for your responses.