Is it just me???

[jake619]

<rant>

I don't know exactly why, but everytime I see a reference to a creditor being "prime" or "subprime" it just about makes me lose it.  Is it just me?  Seriously, is it?  Am I really the only person around that thinks credit profiles are prime or subprime and that creditors just market different products to a given profile?  In the mortgage arena weaker borrowers are clearly labeled subprime, and thus are offered less desirable mortgage products.  It's because their profile doesn't qualify for prime.  Does that make the lender subprime?  Not to me.  In fact, calling the lender subprime actually implies you know something about the lenders borrowing abilities, which presumably you don't.

Applying that logic to a credit card company seems to hold true, to me at least.  Take Cap1 for example.  They offer products targeted toward subprime profiles just as they offer products to more established profiles (read: prime) with the Venture product.  The underwriting criteria for Venture approval is well out of reach for all but the cleanest of reports.  Based on that it would be hard to label Cap1 subprime.  It just doesn't make sense.

I use Cap1 as a classic example of a creditor playing to both ends of the credit spectrum, but others do it as well, sometimes in more clever and obscure ways.

I still say its people and their credit profile, not creditors, that are properly tagged as prime or subprime.  So is it just me?

</rant>

[Shogun]

I agree, for some parts.  But I will say there are subprime lenders, I just feel that way.  I agree totally with Cap1, it depends on you, and the others depend on you too.  But that's what would make them subprime.  You wouldn't see someone with a high credit score going for a Credit One, or First Premier.  They target certain people in certain situations, and their offerings are low CLs, high interest rates, and no perks.  So yes, that makes them subprime.

[longtimelurker]

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@jake619 wrote:

<rant>

I don't know exactly why, but everytime I see a reference to a creditor being "prime" or "subprime" it just about makes me lose it.  Is it just me?  Seriously, is it?  Am I really the only person around that thinks credit profiles are prime or subprime and that creditors just market different products to a given profile?  In the mortgage arena weaker borrowers are clearly labeled subprime, and thus are offered less desirable mortgage products.  It's because their profile doesn't qualify for prime.  Does that make the lender subprime?  Not to me.  In fact, calling the lender subprime actually implies you know something about the lenders borrowing abilities, which presumably you don't.

Applying that logic to a credit card company seems to hold true, to me at least.  Take Cap1 for example.  They offer products targeted toward subprime profiles just as they offer products to more established profiles (read: prime) with the Venture product.  The underwriting criteria for Venture approval is well out of reach for all but the cleanest of reports.  Based on that it would be hard to label Cap1 subprime.  It just doesn't make sense.

I use Cap1 as a classic example of a creditor playing to both ends of the credit spectrum, but others do it as well, sometimes in more clever and obscure ways.

I still say its people and their credit profile, not creditors, that are properly tagged as prime or subprime.  So is it just me?

</rant>

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I've done a lot of posting about this in recent days, my major point that saying X is prime usually doesn't mean anything.   My slight area of disagreement is exactly in the mortgage space, where lenders really were labelled as "subprime".    But I think this more or less concurs with your points if you view this as shorthand for "a lender that lends almost exclusively to those with subprime profiles"   In that area, this meant the lenders were actually taking huge risks, and we all know the rest...!

And thus I agree with Shogun as well that lenders like FP or Credit One are "subprime" in that they lend exclusively to people with subprime profiles (or rather foolish people with better profiles!).

But it's not only you who gets annoyed with "Which banks are prime?", "Is Barclay's prime" etc...

[navigatethis12]

I don't use the word, but I believe it usually has to do with if the poster gets what they want from the lender. There are people who say Chase, Citi, American Express, Bank of America, and others are not prime if anything happens that does not make them happy. I really can't stand American Express and am now iffy about Bank of America, but I would be lying if I said they both do not have a few decent products. Recently someone posted that Barclays is subprime, even though there are people with limits of about 20,000. I take prime on here to mean that the poster has gotten what they want, and subprime to mean the lender said no or decreased the limit/raised the annual percentage rate. The word gets thrown around too much, and if you look at past posts you will see that people change as I explained before.

I do agree that profiles are either good or bad and you can't blame a lender for treating you differently because of it.

[enharu]

There're no subprime or prime lenders, but there are lenders with products targetted towards people with subprime / prime credit. Thus, it's easier to just label those products as subprime products, since they're directly targeted towards people with subpar credit.

[gsxrgt]

A lot of it is perception for the people carrying the cards. Obviously almost any vendor/store is not going to care what kind of card it is as long as it's approved. But people with builder/repair cards have something to look forward to with "prime" cards. 

[longtimelurker]

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@gsxrgt wrote:

A lot of it is perception for the people carrying the cards. Obviously almost any vendor/store is not going to care what kind of card it is as long as it's approved. But people with builder/repair cards have something to look forward to with "prime" cards. 

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Yes, I think that is true, especially seeing all the "I have arrived" posts.   Would be better if people focussed on getting the best card(s) for their spending and needs, even if it is the Tin Visa from TinyCreditUnion of The Mid  SouthSouthEast shore of Podunk Lake, but many people in the situation, as you say, want the perceived big impressive name.  Even if the deal isn't good!

[missjae]

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@longtimelurker wrote:

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@gsxrgt wrote:

A lot of it is perception for the people carrying the cards. Obviously almost any vendor/store is not going to care what kind of card it is as long as it's approved. But people with builder/repair cards have something to look forward to with "prime" cards. 

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Yes, I think that is true, especially seeing all the "I have arrived" posts.   Would be better if people focussed on getting the best card(s) for their spending and needs, even if it is the Tin Visa from TinyCreditUnion of The Mid  SouthSouthEast shore of Podunk Lake, but many people in the situation, as you say, want the perceived big impressive name.  Even if the deal isn't good!

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True!  I love my CU Visa for the product I have and the ease of using it.  Any card that I love gets an A+ in my opinion. 

[BlueNightStar]

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@longtimelurker wrote:

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@gsxrgt wrote:

A lot of it is perception for the people carrying the cards. Obviously almost any vendor/store is not going to care what kind of card it is as long as it's approved. But people with builder/repair cards have something to look forward to with "prime" cards. 

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Yes, I think that is true, especially seeing all the "I have arrived" posts.   Would be better if people focussed on getting the best card(s) for their spending and needs, even if it is the Tin Visa from TinyCreditUnion of The Mid  SouthSouthEast shore of Podunk Lake, but many people in the situation, as you say, want the perceived big impressive name.  Even if the deal isn't good!

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+1000. My local CU CC that started out as a straight 1% points rewards card now has extra cashback on gas and groceries. Far better for an every day spend CC than any other product for me. They also gave me my best limit at the time and I now have a very good LOC with them. I love them and they have been so good to me. People really do need to look past the big names for potential cards that fit their spending.

[Shogun]

Very good points.   And as far as Barclay, I have their NFL card and I absolutely love it.  And their CSRs have been spot on with me.  So if I like their card and their service, I'm going to use them.  Even before my AMEX and Chase at times.  It's just my choice.

edited for spelling errors,, I'm human.