Orchard: If you are planning to close your Orchard, you may want this info

[Anonymous]

Just an FYI to anyone who has an Orchard that you don't plan to keep since rebuilding your credit.  This was my case and I closed mine middle of 2009.

HOWEVER, in hindsight there is one last and final "beneficial" use you can do with this card if you have a significant other/spouse or child that you would like to help with credit.

Orchard does not allow for AU's.  They will allow you to add a joint applicant cardholder.  You must call CS and request the physical form to be mailed to you.  Then to complete it and return by mail. 

Once the joint is added and is reporting to the other person's CR's, then you can close the account and they will inherit the history for up to 10 years, it counts as a true credit reference.

I'm not making any recommendations, I'm just providing information.

IME IMO 

[Anonymous]

That's a great idea!  Wish I would've put our teenage son on my Orchard before closing it.

Thanks for the info.

[Kiwill]

That's great info, THANKS!!

[Uborrow-Upay]

txjohn, I have a question (not specific to Orchard) regarding authorized users and closed credit card accounts.

If an account is closed, and the account had authorized users at the time of account closure, and those authorized users did have the account appear on their own credit reports previously...does the history of that AU account continue to show on the authorized users' credit reports to the same extent it does on the primary cardholder's credit reports (i.e., up to ten years)?  Or does that history just evaporate for the AUs when that account closes?

Just curious.  Seems to me that if it still reports, your excellent advice above is applicable for anyone contemplating closing any credit card in good standing, and wishing to firm up some credit history for a family member/spouse while doing it...and, it's totally risk-free to boot!

[Anonymous]

Do you know if the same holds true if you combine HSBC cards? For example, I combined by Orchard with my HSBC MC.

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@Anonymous wrote:

Just an FYI to anyone who has an Orchard that you don't plan to keep since rebuilding your credit.  This was my case and I closed mine middle of 2009.

HOWEVER, in hindsight there is one last and final "beneficial" use you can do with this card if you have a significant other/spouse or child that you would like to help with credit.

Orchard does not allow for AU's.  They will allow you to add a joint applicant cardholder.  You must call CS and request the physical form to be mailed to you.  Then to complete it and return by mail. 

Once the joint is added and is reporting to the other person's CR's, then you can close the account and they will inherit the history for up to 10 years, it counts as a true credit reference.

I'm not making any recommendations, I'm just providing information.

IME IMO 

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Message Edited by PurpleHaze on 01-20-2010 01:10 PM

[Anonymous]

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@Uborrow-Upay wrote:

txjohn, I have a question (not specific to Orchard) regarding authorized users and closed credit card accounts.

If an account is closed, and the account had authorized users at the time of account closure, and those authorized users did have the account appear on their own credit reports previously...does the history of that AU account continue to show on the authorized users' credit reports to the same extent it does on the primary cardholder's credit reports (i.e., up to ten years)?  Or does that history just evaporate for the AUs when that account closes?

Just curious.  Seems to me that if it still reports, your excellent advice above is applicable for anyone contemplating closing any credit card in good standing, and wishing to firm up some credit history for a family member/spouse while doing it...and, it's totally risk-free to boot!

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Yes, AU account info normally stays on the CR if it was being reported prior to the account closure.

The benefit of converting to JOINT prior to closure is that in addition to the FICO benefits that an AU can provide, the JOINT counts as an actual credit reference.

Many prime lenders have their own internal "credit crunching" in addition to or possibly in lieu of outside scoring.  AMEX and BoA, for example, both account for account "RESPONSIBILITY."  Thus while an AU account will help FICO, if FICO is not used, or is not the deciding factor, or is only an initial sorting mechanism, then having the account as JOINT will help in the actual credit reference because JOINT is "financially responsible, while AU is not.

So, Orchard is one bank that allows the addition of a joint application to an existing account.  BoA is another.  If you plan to close either, then you have the "add joint" prior to closure option.  There is no risk to credit since the account is being closed.

Message Edited by txjohn on 01-20-2010 01:24 PM

[Uborrow-Upay]

Thanks, txjohn!