topic Re: HSBC platinum MC 2% rewards in Credit Cards

HSBC platinum MC 2% rewards

nothingman02 — Tue, 24 Mar 2009 18:07:01 GMT

Just wondeirng. This is one of HSBC's rebuilder cards. Is this a better option than the subprime cards?

How often are CLIs and how much are those CLIs at a time?

How would an initial $250 card evolve over a period of 1 year or 2 years.

Thanks.

Re: HSBC platinum MC 2% rewards

Anonymous — Tue, 24 Mar 2009 18:18:37 GMT

@nothingman02 wrote:
Just wondeirng. This is one of HSBC's rebuilder cards. Is this a better option than the subprime cards?
How often are CLIs and how much are those CLIs at a time?
How would an initial $250 card evolve over a period of 1 year or 2 years.
Thanks.

Its not a great card, anything HSBC really is not great, but its a decent card. Don't expect too many CLI and too often, in fact pretty much accept that you may never get one so that you are not disappoitned. Now with a limit of only $250, you are bound to see improvement and increases but how quickly is a matter of how much you use the card and if they think they can make money off of you. So some period of heavy usage might get them to raise it quicker. In two years you could be looking at about $1500 if everything goes idealy.

Re: HSBC platinum MC 2% rewards

nothingman02 — Tue, 24 Mar 2009 18:35:29 GMT

Along those lines, what exactly is it that approves CLIs?

1) Utilize 70-80% and PIF before the statement cuts every month? (Demonstrating good usage and management)

2) Utilize 5-10% and PIF before the statement cuts every month? (Demonstrating less usage and good management)

3) Doing the above but leaving out 4-5% UTL and paying some interest (so the bank makes some money)?

4) Socking the card thus demonstrating no/low risk

5) Only the typical factors used when first approving the card such as DTI, FICO, derogs, etc etc..

Or any combination of the above with (5)

Message Edited by nothingman02 on 03-24-2009 11:35 AM

Re: HSBC platinum MC 2% rewards

Anonymous — Tue, 24 Mar 2009 18:43:49 GMT

@nothingman02 wrote:
Along those lines, what exactly is it that approves CLIs?
1) Utilize 70-80% and PIF before the statement cuts every month? (Demonstrating good usage and management)
2) Utilize 5-10% and PIF before the statement cuts every month? (Demonstrating less usage and good management)
3) Doing the above but leaving out 4-5% UTL and paying some interest (so the bank makes some money)?
4) Socking the card thus demonstrating no/low risk
5) Only the typical factors used when first approving the card such as DTI, FICO, derogs, etc etc..
Or any combination of the above with (5)

Ok, please understand that high util is NOT a way to get CLI, it just seems that recent HSBC patterns for CLI/CLD tends to revolve around high util and earned finance charges. So this was a recommendation given specifically for HSBC's current strategy model and should NOT be used globally. In fact high util is a death sentence to your credit, generally speaking. But if say you keep your overall util down and use a small credit line with HSBC at high util, they will be less likely to cut your limit and more likely to increase it. Obviously for your overall credit health, do not let a balance report if you can avoid it and HSBC takes about 5 days to process a payment regardless of what they say and that means if you want to avoid that balance reporting, then pay at least a week in advance of your cut off. Do not bother requesting a CLI with them anytime within the first year, it won't happen generally, so give it time and be patient and even after that, keep it to every 6 months at the most. Good luck.

Re: HSBC platinum MC 2% rewards

Kay_Cee — Tue, 24 Mar 2009 19:08:01 GMT

I've had a HSBC Direct Rewards Discover card and it stinks!! I've had it since October of 2007; no lates, always PIF and hardly ever more than a 10% utilization. In October of 2008 I got the bill for the annual fee of $39 ( I think) and called their CS line to see if I could get my CL increased from their very generous $300. I was told no, they weren't giving out any CLI but they would waive the annual fee. Since then, they've cut my cash advance limit from $150 to $75. I'll be kicking this one to the curb in October of this year when they once again bill me for an annual fee and will continue to use my Target Visa, my Chase Mastercard and my AMEX (just not at Walmart. It would be interesting to see if you get the CLI and how long it takes.

To get around their hold on my money, I use my online bill pay from Chase and it is applied to my HSBC account the day after it comes out of my account.

Message Edited by Kay_Cee on 03-24-2009 12:06 PM

Message Edited by Kay_Cee on 03-24-2009 12:08 PM

Re: HSBC platinum MC 2% rewards

Anonymous — Tue, 24 Mar 2009 19:15:16 GMT

HSBC wasn't really that high on the pedistole to begin with but with their recent "business decisions" they are killing their customer base and in the process losing ALOT of good people. If you search for "HSBC slashed my credit" or similar words you will see all the discussion on it. They are going downhill and have a snowball's chance in hell of ever recovering in the eyes of the good customers, although they might still manage to peddle their subprime rebuilder cards in the future. They are doing this to people with excellent credit, large credit lines too, its nothing just directed towards you but I can image its disappointing and hurts to see it happen, I'll give you that. I have a 4900 CL and it got reduced to 2080 and my cash limit is 250, so you tell me how I should feel Understandably we were all pissed, just read the thread and see, and almost NONE of us "deserved it" if you will, it was a "business decision" based on the fact that they don't make money on those of us that PIF, that don't have an AF, and have low util. I just don't use them, sockdrawered it and figure, two can play this game. You hurt me, I won't use you, simple. I have better. But unfortunately that is not an option for everyone, so each person needs to do what works for their specific situation.

Re: HSBC platinum MC 2% rewards

nothingman02 — Tue, 24 Mar 2009 19:27:44 GMT

Hmm...I dont have this card yet. I have an orchard secured and I was pre-qualified for this one on their website. I had decided not to go for it as I would have to cancel my Orchard card as its only been 3 months and HSBC will not let you have another card in 18 months. More importantly, its going to hurt my AAoA (only 2 yrs right now) and I am not in a position to be able to afford that yet. I have my eyes on a couple of the prime cards toward the end of this year and am working on that and orchard is already 3 months old. But orchard card can not grow and I am right now trying to evaluate this HSBC MC absolutely so that I would not have made a wrong decision,looking back in an year or later, in refusing it.

Thanks for your responses.

Re: HSBC platinum MC 2% rewards

nothingman02 — Tue, 24 Mar 2009 19:36:57 GMT

I was going to be added on as an AU on my brothers HSBC which had some 9000 CL with 0 balance and guess what we learnt. Yep they had just closed the card. I would have to agree on their Business decision however. There are too many reasons and it could be an exhausting talk but I do agree that they could have taken better care of people with excellent credit profiles.

Re: HSBC platinum MC 2% rewards

Anonymous — Tue, 24 Mar 2009 19:42:17 GMT

Well, the advise doesn't change a whole lot, other than to say that Orchard is a card you want to lose at the first chance after it has served its purpose. How long have you had it? CL? AF? Rate? Yeah closing a card that early, even Orchard will not do too good for your credit but taking a hit in the short run to shore up your chances is always worth it, take a look at the long run. Now the question becomes, which is better for you in the long run? That's something that will ultimately come down your own personal preference but if I was in your shoes, I would consider dumping the Orchard for the HSBC one instead, only if you are sure you will get it. Preapproved means very little unfortunately. Compare the potential CL vs what you have now, compare potential rate vs what you have now, compare if there is an AF vs. now, and if you consistently find the now is better, stay with it, and if you find consistently that potential is better, take a chance and see how it goes. Either way there might be a chance for disappointment but at least you made an educated choice.

Re: HSBC platinum MC 2% rewards

nothingman02 — Tue, 24 Mar 2009 19:59:14 GMT

Thanks for the reply. I was actually doing pretty much that. But what stopped me eventually was the AAoA. It would take a hit now but I was looking at 1-2 yrs down the line. Right now, if I accept the HSBC (assuming I get approved) and cancel the orchard secured (3 months, no AF, 200CL, 7.95), my AAoA would drop from nearly 2 to 1.5 years. But I could not figure out how much of an impact this would have on FICO. I wanted to understand the percentage of scoring that AAoA accounts for and thus figure out if it could be offset by other factors such as UTL @9%, high available CL etc which have signiffcant impact on the score. Unfortunately, there does not seem to be a way to determine that so I figured I would stay put until I understand the fico scoring model better. I am still learning.

Message Edited by nothingman02 on 03-24-2009 12:59 PM

Re: HSBC platinum MC 2% rewards

Anonymous — Tue, 24 Mar 2009 20:07:12 GMT

Unfortunately no way to know for sure but yes it will take a bit of a hit. But no more than the fact that your account history is pretty young already. So you may actually get lucky and not hurt any more than you are already. Maybe a little lower but hopefully not too huge. Remember that getting your house in order now will have a better long term effect than trying to walk on eggshells now and end up taking that hit later when you have worked so hard.

Re: HSBC platinum MC 2% rewards

nothingman02 — Tue, 24 Mar 2009 20:30:30 GMT

Would the hit because of AAoA be comparable to that of an inquiry? From what I understand now, even if I cancel the orchard secured and opt for HSBC MC, its a typical $300 card and will not grow atleast in the first year and perhaps not remarkably after that either. I am a little skeptical about it reaching 1500 in a couple of years. If so, it is definitely worth it. Otherwise, it seems to be no better than the orchard secured and instead of taking a hit for this card, I could save it for something else if I keep going the way I am right now.

The way it is that both the cards are similar now and if the HSBC can grow siginificantly,I could take the hit with the AAoA now. Else I could save it for a another card. I only have 2 cards orchard and FP 3 months old and 2 derogs, a chase card and its buyer AAC. I am expecting some pre approvals to start in another 3 months. Scores are 576 and TU 602 ficos.Thanks for the help.

Re: HSBC platinum MC 2% rewards

Anonymous — Tue, 24 Mar 2009 20:46:49 GMT

The hit should hover around that of an inquiry most likely. Maybe a bit more but not enough to cripple you. Expectation of $300 is reasonable and you are right, its skeptic but accurate that it might not grow to $1500 in two years but keep in mind that when you don't have alot of revolving and you are with a credit company, generally speaking when you do good and show good, they will grow it with you. It might not get super big super fast, but it will grow. Now given HSBC's recent shenanigans, I am hard pressed to think they will suddenly grow a conscience and act accordingly but you never know. You are welcome and I hope it has given you some perspective and I wish you all the best no matter what you choose to do and will keep my fingers crossed for the best outcome for you. Good luck.

Re: HSBC platinum MC 2% rewards

nothingman02 — Tue, 24 Mar 2009 21:03:32 GMT

Thanks guardian. I am gonna play again with the excel sheet and then give them a call and probably opt for the HSBC. Will post back about how it goes and how my scores changed.They said they would not do an another inquiry if it is within 60 days so the hit would be for the AAoA.

Would you mind looking at another question of mine? It is about a Collection account. The only one I have. If so, this is the link.

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&message.id=56006#M56006

Thanks for the help.

Message Edited by nothingman02 on 03-24-2009 02:03 PM

Re: HSBC platinum MC 2% rewards

Anonymous — Tue, 24 Mar 2009 21:11:18 GMT

You are welcome and I wish you the best. Please do keep us updated, I always like to know, it helps improve and update the experience and what we know to be true or not. For me its knowledge in practice. Thank you.

I will now go and look at your other post and see if I can help. Unfortunately have lots of dealings with collections (thank my wife) so I will see if anything I know can help.