New Houshold Acct.

[Anonymous]

Hi everyone,

In spring of 2008, I was a college senior and opened up a Capital One account ($1,000 CL).  I had an excellent credit history (Chase $4,000 CL, BoA $5,000 CL, Citi $3,500 CL -- low balances, no late payments ever).  I can't really remember why I opened up the Capital One account, but I accepted the 0% balance transfer offer during activation. I pulled $500 off the Citi account.

Long story short, Citi says they never got a dime from Capital One and Capital One says that Citi cashed their check or accepted the EFT (depending on the rep.).  I told Capital One that I would not pay until my Citi account was credited.  Never happened and the collection calls started.  After a summer of robo-voicemails from "Karen at Capital One," they charged off the account.

Citi and BoA eventually closed my accounts (the peril of having an occasional $0 balance) due to the Cap One charge-off.  Chase cut my CL to $3,000.  I had an insurance co pull a job offer after pulling my credit.  I was denied every single unsecured/secured card except a secured one from Cap One (I know, battered borrower syndrome) in April.  I got a secured pre-screen from BoA a few weeks ago and responded, only to be declined because "collateral was returned for insufficient funds" (not possible -- they hadn't cashed the check).  So when Household/HSBC sent me an offer for a $0 AF $200 CL unsecured card, I thought it was better than nothing.

I got the Household card on Wednesday.  Later that day, my bank showed that BoA had just cashed my check.  As of Friday, the BoA card was on its way.  So now I will have three new cards instead of the two I wanted.  Not the worst thing, but that extra account won't do much for me (my UTIL is 5% as it is)

Is there any downside to cancelling the Household card before activating it?  I've heard that HSBC reeks of sub-prime on a credit report and I'm not sure how a $200 limit will look.  Or is there some great upside to letting this free card age as a positive, minor reference?

P.S. Cap One has stopped collections on the charge-off and I'm still fighting to get it pulled from my reports.

[Anonymous]

I can tell you that HSBC will not grow with you.

They gave me 1000CL in 11/03 post BK in '99..

. 
I am now at 1900 five years later with exorbitant

interest.  Two clis, one for 400 and one for 500.  Both

hard inquiries

While I will be eternally grateful for the help, my BK

has fallen off and I have made the 800 club

I would kick them to the curb if there was a fee.

They are not the best

[Anonymous]

Thanks.

I just spoke to an HSBC rep and she said that they are not doing phoned in CLI requests right now.  You have to wait for them. I'd rather not have a $200 CL, no benefits card hanging around for the next few years.  I'm likely going to call and cancel if their retention people can't get me a CLI.  Having a low card count is worth more in this situation...

[Wolf3]

Since you have a charge off on your reports, it makes no difference that HSBC has sub prime products.  The more positive trade lines you have the better for rebuilding your credit.   I would keep the card until you can clear up the reports.  

[smc733]

Ideally a low to none annual fee card with a high interest rate PIF every month would do the job, no?

[Anonymous]

Yes that's what I do with them.  Use every 3 months

and pif.  Like I said I've been with them since '03 and

I also had Orchard (closed now because of fee.). 

Having TL will help your scores but they are wicked

to deal with.  I think my interest rate is 29%.  I personally think

they are nuts. They NEED to be used and abused.