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sandman2435
Posts: 365
Registered: ‎01-22-2011
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Why does HSBC Give such low limits?

I applyed for a GM Card so I can get some rebates to use so when I get a new truck..I can save some money.So I was approved for a $600 limit...why they give such low limits?

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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Why does HSBC Give such low limits?

 


sandman2435 wrote:

I applyed for a GM Card so I can get some rebates to use so when I get a new truck..I can save some money.So I was approved for a $600 limit...why they give such low limits?


 

Because that's the segment of the credit market that they decided to go for. Maybe they figure that they'll make more money? I dunno. At any rate, this is pretty well known about them.

 

Their store card (Best Buy store card; not the RZMC) has good limits, but their bank cards are typically pretty low.

 

Oh, another exception: their Union Plus card is often pretty good.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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scottwagnon
Posts: 1,344
Registered: ‎02-07-2010
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Re: Why does HSBC Give such low limits?

hauling, not knowing much about hsbc, but having had a great past with them in addition to having had their union plus card limit of 7000, had been a great motivation in trying to get back in with them. but as i have learned over time, i was trying to get with a 4 that didn't have much to offer when 7s and 8s were ready to go steady with me!

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
card line up here: http://ficoforums.myfico.com/t5/Credit-Cards/How-Many-Credit-Cards-Do-YOU-have/m-p/1034512#M290859
Established Member
Cranston
Posts: 36
Registered: ‎08-08-2010
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Re: Why does HSBC Give such low limits?

hsbc has lost loads of money in the US over the last 10 years. Whilst at the same time they have been making big profits in the Far East. Some of HSBCs shareholders have been very vocal at complaining about the US losses. HSBC has just under gone a major internal review and the results are due to be released on May 11.

 

Rumors abound about what we be said.

 

I dont see any reason to have a long term relationship with this bank in the US. Make alternative arrangements with companys that want the business and will grow your limit.

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creditguy-378
Posts: 190
Registered: ‎03-23-2011
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Re: Why does HSBC Give such low limits?

other than the best buy mc there isn't any cards you can get that are good from hsbc unless you have a banking relationship with them on the us.hsbc.com website there are 2 cards listed there and when you log in you can see the other 5 or 6 they offer and all of those are prime i love my world premier mc infact they just lowered my interest rate down to 8.9% and gave me a cli if you really want a good hsbc card i guess you could put a 100 dollars in a online savings and then apply  

always use credit wisely and you won't ever feel like you're working just for the task master
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Why does HSBC Give such low limits?

[ Edited ]

HSBC is a monster elsewhere in the world, especially in the Far East and in Britain. Those who are familiar with its profile in other countries are astonished to see what they have here, which is definitely Mickey Mouse in comparison to how they're viewed elsewhere.

 

For whatever reason, they chose to acquire some pretty low-level banks (Orchard, Household Finance) to establish their presence here in the US, and they simply never moved beyond this. I'm surprised, and I think it's a shame, because they had enormous goodwill from those who were familiar with them in other countries. HSBC = Hongkong and Shanghai Banking Corporation = Honkers and Shankers. They were hit hard by the mortgage crash due to the US accounts that they took over.

 

I'm not at all surprised to hear that their stockholders are upset with their US operations and might force them to cut their losses here. If I were looking for new cards, especially if I were in rebuilding mode, I think I'd hold off on them for now. Ain't no tellin' what they'll wind up doing, and especially who might buy their portfolio should they decide to bail on the US market.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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