topic Re: Orchard Bank Secured Card Question in Credit Cards

Orchard Bank Secured Card Question

Anonymous — Sat, 04 Apr 2009 00:10:45 GMT

I have an Orchard Bank secured card that I opened 6 months ago with a limit of just $250. Now in addition to that I have a Capital One Card that I opened at about the same time (started with a $500 limit and two CLIs later is now up to a $1500 limit). My oldest open card is only 11 months.

However, I have just been added as an AU to my husbands Chase card which has a 7 year reporting period (but a balance of 500 on a 1020 limit), my orchard bank card has a balance of $0.

Since I will be getting extra "time" on my history as of this month I was thinking about what to do with the Orchard Bank card. I called them and asked if it could be graduated to an unsecured card and was told, no. They also will not increase the limit unless I secure it further. I only have a balance of about $210 at the moment on the cap one card and 0 on the orchard and my macys and lane bryant cards which I always pay in full. I am wondering whether since the length of time I will have a report will go up this month I should just bite the bullet and close this card since the limit is lower anyway and get them to return my $250 which I could then use to pay down the balance of the Chase card so that it's utilization would be smaller. (Would also lower my husbands utilization and up his available credit somewhat)

My current utilization ratios:

Cap one - bal $210 Limit $1500

Lane Bryant - bal $0 Limit $300

Orchard - bal $0 Limit $250

Macys - bal $0 Limit $100

Total credit available = $2150

Balance - $210 (just below 10%)

When hubbys card comes on board

Cap one - bal $210 Limit $1500

Lane Bryant - bal $0 Limit $300

Orchard - bal $0 Limit $250

Macys - bal $0 Limit $100

Chase - bal $500 Limit $1020

Total credit available = $3170

Balance - $710 (22.39%)

IF I got rid of Orchard and used money to pay down chase

Cap one - bal $210 Limit $1500

Lane Bryant - bal $0 Limit $300

Macys - bal $0 Limit $100

Chase - bal $250 Limit $1020

Total credit available = $2920

Balance - $710 (15.75%)

So... will closing the Orchard Bank have any negative impact on my history? Other than decreasing the available credit (which is going to be made up by the chase card on there anyway?) Any reasons I should or shouldn't do this?

Re: Orchard Bank Secured Card Question

Creditaddict — Sat, 04 Apr 2009 00:20:34 GMT

Close it!

Re: Orchard Bank Secured Card Question

Anonymous — Sat, 04 Apr 2009 00:23:27 GMT

Ha, you sound so sure about that

What about the length of history? Will this account still look good on my account for another 7 years? Like it won't disappear, correct? Just the limit won't be included for utilization?

And the average age of history? Will I take this card out the running.

If so.. then, yeah, I probably will

Re: Orchard Bank Secured Card Question

Creditaddict — Sat, 04 Apr 2009 00:27:54 GMT

I wouldn't care if it was your only card! haha, no but really, they are on the list with first premier for cards I would get when rebuilding, and I did have them for about 6 months before I found out it would never graduate... but once that fact was known, it was closed 5 min later!

Re: Orchard Bank Secured Card Question

Anonymous — Sat, 04 Apr 2009 00:34:03 GMT

Yup that was why I got mine as I was without any credit history at all at the time and was just trying to get some kind of score! They told me when I applied and spoke to them that if I paid it for 6 months and got a credit score then it would be able to graduate but then when I called them now have changed their minds on that apparently!

Re: Orchard Bank Secured Card Question

Creditaddict — Sat, 04 Apr 2009 00:43:16 GMT

well what they mean probably is if you go back to the website AFTER you close this secured card, they will give you a regular card but it will be new inq and new account.

Re: Orchard Bank Secured Card Question

haulingthescoreup — Sat, 04 Apr 2009 15:57:33 GMT

Closed accounts should keep showing on your reports for 10 years after closing, not 7. Unless the CRA loses them, which Equifax has been known to do.