Reply
Valued Member
Siobhanmairead
Posts: 26
Registered: ‎07-26-2012
0

Sub-prime CC's prevent approval for prime cards???

I am rebuilding and have been approved for a Credit One Platinum card. The fees are high but I feel it's worth it. I need a few accounts to show good history so I'll eventually have a good enough credit score for prime cards. I have read on the forums that sub-prime cards can "red flag" you with prime lenders like Chase and AMEX. Is this true? My goal is to get a Chase Freedom in about a year. What are the chances with the sub-prime card listed above?

 

What's in my wallet?

WalMart $250 Limit

Amazon $400 Limit

Victoria's Secret $350 Limit

 

Also AU on Cap 1 Secured $200 and Chase Slate $26k. 

 

I also have a truck loan thru Toyota Motor Corp. All accounts, even the truck loan were opened in Jan 2013. 

The AU accounts are older, the Cap 1 was opened in Sept 2012 and the Chase Slate is 19 years old.

 

Thank you


Starting Score: 600
Current Score: 663
Goal Score: 720


Take the myFICO Fitness Challenge
Valued Contributor
chnceit
Posts: 1,524
Registered: ‎08-17-2008
0

Re: Sub-prime CC's prevent approval for prime cards???

Some say they do some say they dont its what you think is considered Prime. Rewards and interest rate to me is a huge factor. Walmart and Amazon to me is not sub prime because GE is a good company and generous with CLI. Credit One is a Sub Prime because the fees. But it should not hinder you from getting other lenders .

$100K in Credit
Last Credit Card App: 11/16/13
Established Contributor
jamie123
Posts: 902
Registered: ‎03-22-2012
0

Re: Sub-prime CC's prevent approval for prime cards???

Don't do it! Yes, some lenders won't give you credit if you have sub-prime cards.

 

You only need 3 credit cards to maximize your credit scores. You have 3 really nice cards to start your rebuilding.

 

It is time to go to the garden and just manage what you have at the moment. Make sure you use all your cards gently each month and that you pay them in full, on time or early. Do not carry more than a 9% balance month to month.

 

You should now put your efforts toward having your baddies removed either by PFDs or GWs. Having baddies removed is the fastest way to increase your scores now. Once you have 3 credit cards adding more cards won't help and may even hurt your scores.



Starting Score: EQ 658 6/18/12
Current Score: EQ 697 10/26/14 - EX 687 7/21/14 - TU 682 7/21/14
Goal Score: EQ 720+
Take the FICO Fitness Challenge

Valued Contributor
Swapmeet
Posts: 1,569
Registered: ‎11-10-2012
0

Re: Sub-prime CC's prevent approval for prime cards???


jamie123 wrote:

Don't do it! Yes, some lenders won't give you credit if you have sub-prime cards.

 

You only need 3 credit cards to maximize your credit scores. You have 3 really nice cards to start your rebuilding.

 

It is time to go to the garden and just manage what you have at the moment. Make sure you use all your cards gently each month and that you pay them in full, on time or early. Do not carry more than a 9% balance month to month.

 

You should now put your efforts toward having your baddies removed either by PFDs or GWs. Having baddies removed is the fastest way to increase your scores now. Once you have 3 credit cards adding more cards won't help and may even hurt your scores.


+1. Jamie is absolutely right.



My Wallet:
WalMart: ||15k|| USAA Platinum MC: ||26k|| BCE: ||9k|| Chase Freedom Siggy: ||10k|| Discover it: ||6.5k|| SG Visa: ||11k||
USAA World MC: ||23k|| US Bank Cash+ Siggy: ||7.5k|| Citi TYP World MC: ||12k|| Barclays Arrival World MC: ||13k||Citi Double Cash World MC ||25k||Sallie Mae World MC ||18.8k||Fico Scores (3 Fico Monitoring): EQ 751,TU 749, EX 743. Last app: 9-12-14 Sallie
Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Sub-prime CC's prevent approval for prime cards???


Siobhanmairead wrote:

I am rebuilding and have been approved for a Credit One Platinum card. The fees are high but I feel it's worth it. I need a few accounts to show good history so I'll eventually have a good enough credit score for prime cards. I have read on the forums that sub-prime cards can "red flag" you with prime lenders like Chase and AMEX. Is this true? My goal is to get a Chase Freedom in about a year. What are the chances with the sub-prime card listed above?

 

What's in my wallet?

WalMart $250 Limit

Amazon $400 Limit

Victoria's Secret $350 Limit

 

Also AU on Cap 1 Secured $200 and Chase Slate $26k. 

 

I also have a truck loan thru Toyota Motor Corp. All accounts, even the truck loan were opened in Jan 2013. 

The AU accounts are older, the Cap 1 was opened in Sept 2012 and the Chase Slate is 19 years old.

 

Thank you


I think the sub prime CC preventing approval is mostly rumor.    I suspect it might happen in very rare cases. 

 

However, I don't see how Credit One card helps you enough to be worth all the fees.    For instance, Getting a Cap1 secured card of your own would be much cheaper, and better in the long run.

Established Contributor
jamie123
Posts: 902
Registered: ‎03-22-2012
0

Re: Sub-prime CC's prevent approval for prime cards???


Wolf3 wrote:

Siobhanmairead wrote:

I am rebuilding and have been approved for a Credit One Platinum card. The fees are high but I feel it's worth it. I need a few accounts to show good history so I'll eventually have a good enough credit score for prime cards. I have read on the forums that sub-prime cards can "red flag" you with prime lenders like Chase and AMEX. Is this true? My goal is to get a Chase Freedom in about a year. What are the chances with the sub-prime card listed above?

 

What's in my wallet?

WalMart $250 Limit

Amazon $400 Limit

Victoria's Secret $350 Limit

 

Also AU on Cap 1 Secured $200 and Chase Slate $26k. 

 

I also have a truck loan thru Toyota Motor Corp. All accounts, even the truck loan were opened in Jan 2013. 

The AU accounts are older, the Cap 1 was opened in Sept 2012 and the Chase Slate is 19 years old.

 

Thank you


I think the sub prime CC preventing approval is mostly rumor.    I suspect it might happen in very rare cases. 

 

However, I don't see how Credit One card helps you enough to be worth all the fees.    For instance, Getting a Cap1 secured card of your own would be much cheaper, and better in the long run.


It is not rumor! Sure the lenders won't come right out and tell you that they denied you because you have a First Premier credit card but that IS the reason for denial.

 

There was somebody that stopped by this forum the other day wondering why they were denied an AMEX card. They had about 8 quality credit cards with an average of 5K CLs. His scores were about 736 across the board. He also had a First Premier credit card with a $500 CL. The First Premier was the first credit card he ever received about 8 years ago and he just kept it open but hadn't really used it in years.

 

In lender's eyes all credit is not created equal. You can be denied credit for the quality of your previous credit.



Starting Score: EQ 658 6/18/12
Current Score: EQ 697 10/26/14 - EX 687 7/21/14 - TU 682 7/21/14
Goal Score: EQ 720+
Take the FICO Fitness Challenge

Valued Contributor
Swapmeet
Posts: 1,569
Registered: ‎11-10-2012
0

Re: Sub-prime CC's prevent approval for prime cards???

I know that I have said this a couple times in the last few days, but Amex approved me with scores in the upper 6s and a First Premiere cc with a 300 cl. YMMV.



My Wallet:
WalMart: ||15k|| USAA Platinum MC: ||26k|| BCE: ||9k|| Chase Freedom Siggy: ||10k|| Discover it: ||6.5k|| SG Visa: ||11k||
USAA World MC: ||23k|| US Bank Cash+ Siggy: ||7.5k|| Citi TYP World MC: ||12k|| Barclays Arrival World MC: ||13k||Citi Double Cash World MC ||25k||Sallie Mae World MC ||18.8k||Fico Scores (3 Fico Monitoring): EQ 751,TU 749, EX 743. Last app: 9-12-14 Sallie
Established Contributor
namvet
Posts: 866
Registered: ‎09-22-2011
0

Re: Sub-prime CC's prevent approval for prime cards???

It is well documented that Credit One in your portfolio will not prevent you from obtaining a prime card once you become eligible!  Time and good credit management will take you to prime land.

Valued Contributor
chnceit
Posts: 1,524
Registered: ‎08-17-2008
0

Re: Sub-prime CC's prevent approval for prime cards???

This is all a myth and rumors that having a sub prime card will not let you get a Prime lender.

There is no way a lender will know your terms of your cc that you hold. They will know the basics about fees and interest rates about the company but not the terms of your card member agreement.

Prime and Sub Prime are in the eyes of the beholder.IMO

$100K in Credit
Last Credit Card App: 11/16/13
Senior Contributor
Open123
Posts: 4,194
Registered: ‎02-23-2011
0

Re: Sub-prime CC's prevent approval for prime cards???

The most important step is to build a good credit history asap, and that requires revolving credit lines.  If Credit One is the only option, than it's the best options.

 

Once you reach a good credit profile, than you can worry about whether or not a subprime lender reflects badly on your file.  If it does, then just close the account.  Don't worry about step 2, especially since there is *no* step 2 without step one.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}