topic Re: Prime v. subprime? in Credit Cards

Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 07:20:49 GMT

Could someone explain the difference to me? I'm starting to repair my credit, and I recently got a First Premier card. I know that this is a subprime card (I'm guessing because my credit is 'subprime' the card i got approved for would be too), but what exactly does that mean??

Re: Prime v. subprime?

marty56 — Wed, 23 Jul 2008 10:13:12 GMT

They only diffrence between the prime and so-calloed subprime card is the CL is low and or interest rates are high. Also may have a monthly fee and a large yearly fee. IMHO it would have no effect on your FICO score the fact that is is subprime.

I dont like the term since it implies that it hurts your credit or that somehow you are subprime. Everyone needs to start somewhere or somewhere again.

I would call it a creit builder/re-builder card.

Re: Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 16:15:13 GMT

Thanks for the clarification!!

Re: Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 16:20:37 GMT

@marty56 wrote:
They only diffrence between the prime and so-calloed subprime card is the CL is low and or interest rates are high. Also may have a monthly fee and a large yearly fee. IMHO it would have no effect on your FICO score the fact that is is subprime.

I dont like the term since it implies that it hurts your credit or that somehow you are subprime. Everyone needs to start somewhere or somewhere again.

I would call it a creit builder/re-builder card.

I agree. The Ts & Cs of the account is what makes the difference between prime and subprime. They don't report any different from a prime card, nor does the scoring algorithm take the lender into affect when it calculates the score.

Re: Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 16:21:15 GMT

There are many threads about this-

Prime vs Sub-prime is subjective -

"prime" cards from CCC's that specialize in sub-prime (hsbc, cap1)

Sub-prime cards from Prime issuers

My Amex Delta Sky Miles is a "prime" example as the CL is not huge and the APR stinks and has a AF. I am very happy with it and consider it "Near Prime"

Re: Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 17:29:06 GMT

prime cards are those you want in your wallet.

sub-prime cards are those you settle for in your wallet.

So one man's prime could be another man's subprime

Re: Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 17:29:42 GMT

thrasher865 wrote:

prime cards are those you want in your wallet.

sub-prime cards are those you settle for in your wallet.

So one man's prime could be another man's subprime

Well put.

Re: Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 17:43:43 GMT

I consider any card that has an annual fee without a rewards program subprime.

If they charge a fee just for the "privilege" to have the card and give nothing in return they are likely not in the prime category.

I guess technically the interest rate is the determining factor on prime vs sub-prime - but I factor the annual fee into the overall "cost" of having the card (I now PIF so the interest rate doen't "cost" me anything even if it is higher than some).

-TP

Re: Prime v. subprime?

Anonymous — Wed, 23 Jul 2008 18:44:33 GMT

@Anonymous wrote:
So one man's prime could be another man's subprime

Quote of the day!