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Senior Contributor
drkaje
Posts: 3,482
Registered: ‎07-25-2008

Re: Simmons First Visa.... Why is it good?


Creditaddict wrote:

CreditScholar wrote:

Open123 wrote:

starry1 wrote:
I would imagine their customer base to be pretty small then. How are they turning a profit in such a competitive market? Even Amex has been loosening up their criteria.

I'd imagine to offer a credit line on demand at 7.25% would require a much stricter underwriting process than Amex or the other big lenders.  At higher avg rates, Amex can utilize the "law of large" numbers to freely handout higher credit lines, whereas if Simmons were to offer such a low rate without strict underwriting criteria, the rate would have to increase to the "mean" with higher defaults.


+1. This pretty much sums it up.

 

From the consumer's perspective, there are credit-worthy individuals who want that safety net in case they need to carry a balance. Large purchases and unexpected expenses can be charged without worrying abouta high APR.

 

From Simmon's perspective: they're essentially collecting 7.25% interest from people who they know will pay. They don't have to worry about rewards as such, and the chances of default are as close to zero as one can find in a CC product.


That's all fine but these days someone with this kind of "Credit Portfolio" wouldn't they just apply for a new 0% card for 15,18,23 months depending over last 2 years what's available or as other person stated having the card since 18 years old or like American Express Optima (My card with my father from 2000 was at a FIXED 6.49%) 

It would be one thing to spend an hour to apply for a credit card if you needed to park $50k but for $10k? some of us have seen that credit line on a Gas Card!


Cards like Simmons are more suited to people with a stable financial profile who rarely carry a balance.

 

BTs and a ton of new cards are great for bouncing around debt or using a float.

 

The product just has to suit someone's specific needs. Bigger limits feel good but with no debt they may not really be necessary for a lot of people.

 


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Valued Contributor
tray
Posts: 1,313
Registered: ‎01-29-2008

Re: Simmons First Visa.... Why is it good?

Any thoughts on State Department Federal Credit Union which has APR's starting from 6.99....


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Valued Member
slick_shoes_182
Posts: 36
Registered: ‎03-22-2013

Re: Simmons First Visa.... Why is it good?

I obtained the 7.25% Simmons First Visa Platinum and the comparable 7.25% Iberiabank Visa Classic almost 2 years ago. I sent the same documents to both (copys of taxes, W-2, current pay slips, and utility bills showing my addresses). At the time of the app I had a credit karma fako of 735 and a prior year income below 100K. My 2 existing cards at that time were 10K and 20K (I think).

 

I ended up with a 2.5K Simmons First CL and 9.5K Iberiabank CL. Neither are signature lines. Elsewhere, I have heard of people who applied for both at the same time and received a bigger credit line from Simmons First than Iberiabank.

 

In my experience with both, the customer service representatives were very friendly southerners. I always thought of their strict credit standards as being a result of their small size. With the lowest APRs around, I assumed that they get far more applicants than they can handle so they need to be extra careful.

 

While I hear that you need good credit scores, I would bet that a 720, with low utilization %, could get either card. 

 

I got them because I occaisionally tie up my cash with investments or stockpiling before a vacation or something, so I delay paying off the balances for a short time. If I'm ever going to carry a balance, I thought I should have the lowest APR possible. These are the lowest APR cards I know of. Let me know if you know of lower APRs!.

 

However, you're right, using a 0% new card offer, or even a 3% fee convenience check (including 0% APR for some time period) would be better in many cases.

Regular Contributor
bluedog1
Posts: 120
Registered: ‎03-14-2013

Re: Simmons First Visa.... Why is it good?

Citi is always offering me a 12 month 0% BT though I've never taken them up on the offer. Even with the 3% BT fee it is a reasonable option to revolve a balance long term.

Regular Contributor
Gollum
Posts: 116
Registered: ‎10-09-2011

Re: Simmons First Visa.... Why is it good?


Creditaddict wrote:

I seem to feel like it's SUPER hard to get and looking at application "IF" you are approved for Signature the line with be at least $10k, BUT anything over $10k requires Financial Review... at $10k?

For such a application and review I would think "it's worth it because I get $50k limit or the rate is 4% or the rewards are 3% no limits... but Idit see nothing? 7.25% = BLAH!

 

What am I missing?!

Who has it? How hard was it to get? and limit?


The Simmons First credit cards are available only to those with excellent credit.

That is why the cards are mentioned on this forum.

That is why people hope to eventually be able to have a Simmons First credit card.

Contributor
ArCpa
Posts: 95
Registered: ‎05-17-2009

Re: Simmons First Visa.... Why is it good?

Yes, Simmons is a small bank based in Arkansas. And they have great rates on everything. But some of there products are almost impossible to get .I went to a branch and applied two years ago. They decline me within a couple of minutes in house. There reason : I had to many accounts, not accounts with balances because I PIF every month. My scores were great and my income is 6 figures. The Bank manager told me at the time that there system would decline anyone who had more than 9 or10 open accounts. Of course this was 2 yrs ago.

CC: Amex Green ( NPSL) Amex BCE ( 38.1 K ) US Bank Sig Cash ( 20K ) Pen Fed (42K) Chase Freedom ( 7.5K) Discover More (22K ) Cap 1 QSilver (10K) Barclays Rewards (9K) Care Credit (5.5k) Sears (12K) JC Pennys (6K) Dell (13K) Key Bank (19k ) Key Bank (16K) FFO (7.5 K) Shell ( 600) OCCU ( 20K ) City TY (10.5K) CSP (17.5k) Regions ( 18K )Simmons (15K) Regions BLOC (125K) Fuel Rewards MC(10K )

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Valued Contributor
Crashem
Posts: 3,098
Registered: ‎01-26-2012

Re: Simmons First Visa.... Why is it good?

If in Bay Area, go for the sf fire credit card instead. Same interest rate and you get reward points (nothing special though). Plus basically no fees.
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Regular Contributor
Gollum
Posts: 116
Registered: ‎10-09-2011

Re: Simmons First Visa.... Why is it good?


Creditaddict wrote:

I seem to feel like it's SUPER hard to get and looking at application "IF" you are approved for Signature the line with be at least $10k, BUT anything over $10k requires Financial Review... at $10k?

For such a application and review I would think "it's worth it because I get $50k limit or the rate is 4% or the rewards are 3% no limits... but I see nothing? 7.25% = BLAH!

 

What am I missing?!

Who has it? How hard was it to get? and limit?


Many people have gone through prolonged periods of time with bad credit.

 

Some of us mark the milestones of our journey toward credit-worthiness more frequently and/or publically than others.

 

The Simmons First Visa Platinum credit card is only offered to those with excellent credit.

It's a CC that many people who have struggled with credit ratings (in the past) hope to obtain (in the future).

It's a daydream that can become reality, without being rich or having a six figure annual income.

 

But...

The overwhelming majority of people will not be able to obtain that CC.

So, it has a certain mystique among CC fanciers.


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