01-24-2009 05:49 AM
I doubt this will solve the debate, but in the last 6 months I've gotten an Orchard Card, a HSBC Rewards Visa and a Best Buy store card. All are paid in full each month, except the Best Buy card which was used on a big screen TV and it took 75 days to pay in full. (3 cards in 6 mo.)
As for "risk" by the store, this is a "six of one, half dozen of another" scenario. Most companies like HSBC put a certain percentage of the amount charged in a "reserve for losses" pool. If the losses on the portfolio aren't excessive, Best Buy (for example) can draw down on these reserves, in affect... taking cash out of the pool as a sort of bonus for doing business with that bank. I've spent time in the industry and know this to be commonplace business practice. The store's "risk" is that they lose their reserve draws (extra profit) if the portfolio is not performing up to the stipulated mean. The amounts in these pools can get HUGE, so there is some risk, I guess.
01-24-2009 11:18 PM
01-25-2009 09:44 AM
Surprised to hear that HSBC issued both an Orchard MasterCard and HSBC Visa to someone within 6 months.
I can see them approving a Best Buy or some other store card during that time.
Perhaps if your CR is tidy, they don't make you wait for an additional MC/Visa from them?
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