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Epic Contributor
Creditaddict
Posts: 22,116
Registered: ‎10-23-2007
0

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

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?

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
0

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

It's essentially a no-frills card which can be used to carry balances on-demand (given it's low APR).

 

From what I understand the process is fairly involved compared to other lenders. They will need proof of employment/income, and are looking for a FICO of around 800. If you don't have both, they simply won't approve you.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Community Leader
Valued Contributor
starry1
Posts: 2,325
Registered: ‎11-29-2012
0

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

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.

Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 12/22/14 TU 659; EQ 649; EX 658
Goal Score:  625 for now– New goal 675

Cap1 sec $1k (SD) / Fingerhut $2k / Flagship $12k / cashRewards $10k / NavChek $15k / Amazon $2k / Von Maur $1k / Firestone $2.2k / BCU $3k / NFL $1k / QS1 $500 / Target $400 / PPSC $800 / Texaco $400 (last app 09/29/14)
Valued Contributor
FinStar
Posts: 6,980
Registered: ‎10-21-2012
0

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?


Very conservative and difficult approval process.  Simmons is one of the oldest, regional banks in the U.S.  They do offer a couple other products with some "ok" reward structures.  A friend of mine has had their Visa for about 18+ years, 15K limit.  Their APRs are one of the lowest in the nation and applies to both standard purchases and balance transfers.   Ideal for someone who may potentially carry a balance long term or beyond the duration of most available intro/promo rates from other lenders.  Only the cream of the crop of applicants get this card.  From what I've known, FICOs have to be generally above 800+ to be even considered, very little utilization and not a ton of accounts.  Not to mention the arsenal of financial information that they ask from all applicants.

Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
0

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


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.

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
0

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


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.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Epic Contributor
Creditaddict
Posts: 22,116
Registered: ‎10-23-2007
0

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


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!

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
0

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

[ Edited ]

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!


The "gas card" comment cracked me up!

 

Well, the reason why there's such an array of 0% promos is because interest rates are at 0.  While it appears rates will remain at 0 in the forseeable future, they can rise at any time.  The difference is if rates were to rise, the Simmons would likey still be offering the option to carry a balance on demand at 7.25%, while the 0% promo rates may disappear overnight, leaving the person who suddenly needs to carry a balance with less appealing options than the Simmons.

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
0

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!


Not everyone wants to apply for a new card every time something comes up and they need to carry a balance. For some, having the peace of mind knowing it's there is more important.

 

It's similar to why I have the United Club card, besides the high return on spending. I'm not a heavy flier (by most people's definition), and in many cases I'm flying J or F which gives me lounge access anyways. However I like having lounge access on-demand. I don't want to worry about day passes, what class or ticket I'm flying on, etc. Last year they forgot to give me a lounge pass with my boarding pass. Instead of going all the way back to the international transfer desk, I just swiped my United lounge card and was let in. For me just having it available at all times is worth the high AF, so I'm willing to pay for that.

 

Simmons First is the credit version of the lounge access scenerio.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Valued Contributor
scottwagnon
Posts: 1,350
Registered: ‎02-07-2010
0

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


FinStar wrote:

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?


Very conservative and difficult approval process.  Simmons is one of the oldest, regional banks in the U.S.  They do offer a couple other products with some "ok" reward structures.  A friend of mine has had their Visa for about 18+ years, 15K limit.  Their APRs are one of the lowest in the nation and applies to both standard purchases and balance transfers.   Ideal for someone who may potentially carry a balance long term or beyond the duration of most available intro/promo rates from other lenders.  Only the cream of the crop of applicants get this card.  From what I've known, FICOs have to be generally above 800+ to be even considered, very little utilization and not a ton of accounts.  Not to mention the arsenal of financial information that they ask from all applicants.


though it is the most difficult card to obtain in the popular credit card market, considering what they offer, i don't even think it is worth it. id rather be myself than pine over this holier than thou product.

EX BankCard 8 FICO 820 (250-900) 04/08/14
TU FICO 806 (350-850) 04/10/14
EX VT 3.0 805 (300-850) TU VT 2.0 891 (501-990)
Credit.com score 798 (300 - 850) TU transrisk 772
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