topic Re: 2 low limit cards..approved for 3rd. Is it a good idea? in Credit Cards

2 low limit cards..approved for 3rd. Is it a good idea?

gettingsmarter — Sun, 30 Jan 2011 15:14:02 GMT

I have 2 capial one credit cards first with 750 limit opened in June 2010 (started at 500 then increased a few months later as part of their "steps" program) - the second is capital one also, was opened in September 2010 with $500 limit about to become $750 in March. So after months of getting weekly offers from Orchard bank in my mailbox, I took the bait and applied nline and was approved for a low $300 limit. Before I activate it, should I even bother? Will it be a good thing score wise in the future as far as revolving accounts or should I just keep working with my 2 capital one cards. One of the capital one card will be a year in just a few months.. And I have seen my scores go up slowly. Any and all advice is greatly appreciated.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

JayRizzo — Sun, 30 Jan 2011 15:27:19 GMT

I would have gardened the the 2 Capital One accounts for a while because they are still new. Geeeez!!! An Orchard Offer?!? That's like taking 3 steps back when you were ahead.

I'm finding more and more people are doing this knee-jerk reaction, THEN come to the forum and ask if they did the right thing?!? I'm still waiting for someone to get online and say they've searched the forum for existing threads on the subject and weighed the Pros and Cons of the offer and based on their findings, blah blah blah. But truly, I'm starting to feel this forum isn't really serving it's purpose to educate consumers if the majority of posters are reactive first, then come to the forums for comforting. Just my opinion.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

Anonymous — Sun, 30 Jan 2011 16:10:06 GMT

@JayRizzo wrote:
I would have gardened the the 2 Capital One accounts for a while because they are still new. Geeeez!!! An Orchard Offer?!? That's like taking 3 steps back when you were ahead.

I'm finding more and more people are doing this knee-jerk reaction, THEN come to the forum and ask if they did the right thing?!? I'm still waiting for someone to get online and say they've searched the forum for existing threads on the subject and weighed the Pros and Cons of the offer and based on their findings, blah blah blah. But truly, I'm starting to feel this forum isn't really serving it's purpose to educate consumers if the majority of posters are reactive first, then come to the forums for comforting. Just my opinion.

Well, FWIW, I have been making recent decisions based upon info found here. For example, I've learned about the effects of inquiries and AAoA. So, when I decided that I didn't want to keep my DH on as an AU on my FP card because they were going to hit me with yet another fee, I sat him down and told him that it was time to get a card under his own name. In the past, I would have applied for another account and put him on as an AU. Bad idea, so I didn't do it. But, I wised up from reading about such things here. I'm in serious gardening mode right now... I learned about that concept from HERE.

I can understand how the OP feels. When you're used to getting rejected, and someone suddenly offers you a card, it can feel like such a boost that it's hard to resist the offer. The OP will do just fine with the three cards, and now most likely realizes that it's time to stop and let them grow. He or she wouldn't have asked if the light bulb hadn't gone off. It might have been better if this had happened before accepting the Orchard Bank card, but in the end it should work out. No need to make the OP feel bad about it... He or she may come to feel uncomfortable asking future questions. Many of us, including myself, have made mistakes with our credit, and I will say that I'm grateful to have a place where I can come and ask questions and learn. Even so, learning doesn't mean that one can't make a few mistakes along the way.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

JaseT — Sun, 30 Jan 2011 16:18:23 GMT

I would'nt open the HSBC/Orchard account. When I was rebuilding last spring/summer, I opened up an HSBC/Household card and regret it now. $300 limit that doesn't increase and an AF. Turd of a card, for sure.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

Anonymous — Sun, 30 Jan 2011 16:19:24 GMT

@gettingsmarter wrote:
I have 2 capial one credit cards first with 750 limit opened in June 2010 (started at 500 then increased a few months later as part of their "steps" program) - the second is capital one also, was opened in September 2010 with $500 limit about to become $750 in March. So after months of getting weekly offers from Orchard bank in my mailbox, I took the bait and applied nline and was approved for a low $300 limit. Before I activate it, should I even bother? Will it be a good thing score wise in the future as far as revolving accounts or should I just keep working with my 2 capital one cards. One of the capital one card will be a year in just a few months.. And I have seen my scores go up slowly. Any and all advice is greatly appreciated.

You've already taken a hit from the inquiry, so you've already lowered your score a bit. By activating the card the account will report to the CRAs and will lower your AAoA. Since you started less than a year ago, it sounds like it's already pretty low. Do you have an AF with this card? If so, is it worth it to you to keep it? You may just want to cancel it before you use it so that you don't have to pay the AF and lower your AAoA.

If you HAVE already started to use the card, you might as well keep it, as you're already on the hook for the AF and the account will report to the CRAs. Even with the low limit, you could still use it once a month for a tank of gas.

Those are just my thoughts on the matter.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

haulingthescoreup — Sun, 30 Jan 2011 16:24:12 GMT

@gettingsmarter wrote:
I have 2 capial one credit cards first with 750 limit opened in June 2010 (started at 500 then increased a few months later as part of their "steps" program) - the second is capital one also, was opened in September 2010 with $500 limit about to become $750 in March. So after months of getting weekly offers from Orchard bank in my mailbox, I took the bait and applied nline and was approved for a low $300 limit. Before I activate it, should I even bother? Will it be a good thing score wise in the future as far as revolving accounts or should I just keep working with my 2 capital one cards. One of the capital one card will be a year in just a few months.. And I have seen my scores go up slowly. Any and all advice is greatly appreciated.

Well, you're stuck with it on your reports, whether you activate it or not. If there's a fee, I might not bother to activate. Otherwise, it's your choice, but it will probably be stuck at $300 for a long, long time.

When you're evaluating your credit opportunities, keep an eye on the calendar. Your first card was opened in June 2010 and the second in September 2010.

If I were you, I wouldn't apply for (or accept) anything more until June-July 2011 at the earliest, and maybe until September-October 2011.

You need to establish a track record of good history, and the longer it is, the more ready better lenders will be to approve you. Right now, you're a building/ rebuilder, so that's probably all you're going to get for now. If you hold off until October, when both cards have reported for a solid year, I think you'll look a lot more attractive to lenders. (Plus your FICO's will be higher.) You might want to research credit unions in your area in the interim, as CU's are generally more generous with initial CL's.

Step back and do some gardening. You've got time, and you'll come out a lot better in the end.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

haulingthescoreup — Sun, 30 Jan 2011 16:26:07 GMT

@Anonymous wrote:

You've already taken a hit from the inquiry, so you've already lowered your score a bit. By activating the card the account will report to the CRAs and will lower your AAoA. Since you started less than a year ago, it sounds like it's already pretty low. Do you have an AF with this card? If so, is it worth it to you to keep it? You may just want to cancel it before you use it so that you don't have to pay the AF and lower your AAoA.

If you HAVE already started to use the card, you might as well keep it, as you're already on the hook for the AF and the account will report to the CRAs. Even with the low limit, you could still use it once a month for a tank of gas.

Those are just my thoughts on the matter.

In almost all cases, accounts are going to report, whether you activate or not. There was discussion about adding a "buyer's remorse" provision to the Credit Card ACT, so that new unactivated accounts wouldn't report, but AFAIK this didn't make it into law.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

Anonymous — Sun, 30 Jan 2011 16:33:42 GMT

@haulingthescoreup wrote:

@Anonymous wrote:

You've already taken a hit from the inquiry, so you've already lowered your score a bit. By activating the card the account will report to the CRAs and will lower your AAoA. Since you started less than a year ago, it sounds like it's already pretty low. Do you have an AF with this card? If so, is it worth it to you to keep it? You may just want to cancel it before you use it so that you don't have to pay the AF and lower your AAoA.

If you HAVE already started to use the card, you might as well keep it, as you're already on the hook for the AF and the account will report to the CRAs. Even with the low limit, you could still use it once a month for a tank of gas.

Those are just my thoughts on the matter.
In almost all cases, accounts are going to report, whether you activate or not. There was discussion about adding a "buyer's remorse" provision to the Credit Card ACT, so that new unactivated accounts wouldn't report, but AFAIK this didn't make it into law.

Ah, I wasn't aware of this. Another new thing that I've learned here. That's too bad, though. If you apply for a card and you don't like the terms, I assumed that you had the right to decline it and go on your way. It almost sounds as if you're entering into a contract without being allowed to review it first. After all, you don't know what CL and APR you'll be offered until AFTER you apply. I thought that activating and using the card constituted your final, binding agreement to that contract. I don't understand why it should be reported to the CRAs if you have decided not to agree to the terms and accept the card. Somehow, this doesn't seem right to me, and I wish that the law would address it.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

Anonymous — Sun, 30 Jan 2011 17:24:43 GMT

@gettingsmarter wrote:
I have 2 capial one credit cards first with 750 limit opened in June 2010 (started at 500 then increased a few months later as part of their "steps" program) - the second is capital one also, was opened in September 2010 with $500 limit about to become $750 in March. So after months of getting weekly offers from Orchard bank in my mailbox, I took the bait and applied nline and was approved for a low $300 limit. Before I activate it, should I even bother? Will it be a good thing score wise in the future as far as revolving accounts or should I just keep working with my 2 capital one cards. One of the capital one card will be a year in just a few months.. And I have seen my scores go up slowly. Any and all advice is greatly appreciated.

The account is already open, so not activating the card does nothing.

This is a OK move. Developing a positive relationship with HSBC (who owns Orchard) will help you get one of their better cards in the future. I suggest you activate the card and use it along with the Capital One cards. I would wait about a year for the next application when your scores should be better. Pick one you want for the long term.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

Anonymous — Sun, 30 Jan 2011 17:30:24 GMT

@JayRizzo wrote:
I would have gardened the the 2 Capital One accounts for a while because they are still new. Geeeez!!! An Orchard Offer?!? That's like taking 3 steps back when you were ahead.

I'm finding more and more people are doing this knee-jerk reaction, THEN come to the forum and ask if they did the right thing?!? I'm still waiting for someone to get online and say they've searched the forum for existing threads on the subject and weighed the Pros and Cons of the offer and based on their findings, blah blah blah. But truly, I'm starting to feel this forum isn't really serving it's purpose to educate consumers if the majority of posters are reactive first, then come to the forums for comforting. Just my opinion.

You, on the other hand, like to pass off rumor and hearsay as fact. I find that much more annoying!

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

Anonymous — Sun, 30 Jan 2011 17:32:55 GMT

I had Orchard when I was rebuilding. They

gave auto clis. Definately helped me rebuild

especially with BK.

EX 782

EQ 802

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

JayRizzo — Mon, 31 Jan 2011 00:15:50 GMT

@Anonymous wrote:

You, on the other hand, like to pass off rumor and hearsay as fact. I find that much more annoying!

I'm still trying to figure out which part am I passing off rumor and hearsay as fact?!? I stated something like, if the OP did a search in the forum they would've found information pertaining to their card from other posters beforehand. Also, a large majority of those posters communicated an average CL of around $300 dollars. Many even discussed the high AFs and interest rates. Seeing that it's only a forum and we don't have actual financial records of each member, then the information they are providing is about the most accurate depiction that we are given. I, at no time, said each poster communicated 100% truth, but I'm pretty sure they're trying to share their actual experiences so the next member doesn't follow the same rabbit trail without being forewarned.

My advice to the OP was to garden as their other cards were still new, which was recapped by other members. Even by their own admission, they decided to take a chance on a pre-approved offer. Not having seen that particular offer, I'm sure somewhere on the website there's a link to the Terms & Conditions or on the material there are asterisks (*) to some fine-print stating the phrase, "based on creditworthiness" while displaying a range of interest rates from 0 - 29.99% or whatever the range (you never know which you're going to get). Bottom line, it's always good to do some research before pulling the application trigger. I was merely trying to understand why some people shoot first and ask questions later. And, of course, I ended with... just my opinion.

If I missed something, please let me know exactly what I'm passing off as rumor or hearsay as fact to any member in the forums.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

haulingthescoreup — Mon, 31 Jan 2011 01:16:14 GMT

@Anonymous wrote:
@JayRizzo wrote:
I would have gardened the the 2 Capital One accounts for a while because they are still new. Geeeez!!! An Orchard Offer?!? That's like taking 3 steps back when you were ahead.

I'm finding more and more people are doing this knee-jerk reaction, THEN come to the forum and ask if they did the right thing?!? I'm still waiting for someone to get online and say they've searched the forum for existing threads on the subject and weighed the Pros and Cons of the offer and based on their findings, blah blah blah. But truly, I'm starting to feel this forum isn't really serving it's purpose to educate consumers if the majority of posters are reactive first, then come to the forums for comforting. Just my opinion.
You, on the other hand, like to pass off rumor and hearsay as fact. I find that much more annoying!

Hey, hey, hey now! As JayRizzo stated, just his opinion.

I'm not sure that I would have written it as "starting to feel that this forum isn't really serving it's purpose...", although I think I understand what he was saying. IMO, it's more of a case of "You can lead a horse to water, but you can't make him drink."

And plenty of people (me definitely included) find the forums after they painted themselves into a corner. These are the first forums that I ever participated in, and I still barely post on the other two that I track. So an awful lot of us get the benefit of the forums after we have, umm, made a few missteps.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

haulingthescoreup — Mon, 31 Jan 2011 01:18:26 GMT

@Anonymous wrote:
@haulingthescoreup wrote:
@Anonymous wrote:

You've already taken a hit from the inquiry, so you've already lowered your score a bit. By activating the card the account will report to the CRAs and will lower your AAoA. Since you started less than a year ago, it sounds like it's already pretty low. Do you have an AF with this card? If so, is it worth it to you to keep it? You may just want to cancel it before you use it so that you don't have to pay the AF and lower your AAoA.

If you HAVE already started to use the card, you might as well keep it, as you're already on the hook for the AF and the account will report to the CRAs. Even with the low limit, you could still use it once a month for a tank of gas.

Those are just my thoughts on the matter.
In almost all cases, accounts are going to report, whether you activate or not. There was discussion about adding a "buyer's remorse" provision to the Credit Card ACT, so that new unactivated accounts wouldn't report, but AFAIK this didn't make it into law.
Ah, I wasn't aware of this. Another new thing that I've learned here. That's too bad, though. If you apply for a card and you don't like the terms, I assumed that you had the right to decline it and go on your way. It almost sounds as if you're entering into a contract without being allowed to review it first. After all, you don't know what CL and APR you'll be offered until AFTER you apply. I thought that activating and using the card constituted your final, binding agreement to that contract. I don't understand why it should be reported to the CRAs if you have decided not to agree to the terms and accept the card. Somehow, this doesn't seem right to me, and I wish that the law would address it.

Absolutely! And that was the thinking behind adding a provision that consumers could decline a card that wound up being something other than what they thought that they were applying for.

I also wish that this had made it into law.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

gettingsmarter — Mon, 31 Jan 2011 05:56:26 GMT

RE: JayRizzo***: ""But truly, I'm starting to feel this forum isn't really serving it's purpose to educate consumers if the majority of posters are reactive first, then come to the forums for comforting""***

You know, sometimes I lurk and dont ask because I read posts and see people get slammed for daring to ask a question that may have been asked in another post. 99% of the time I have found these forums to be really great and dont often post because after doing a search I usually find my answer and all is well. There are times however when as a memeber of the forums you may want to ask your question so that you can include your owns specific details. Sometimes when I see questions that have been asked back in early 2009 or even 6 months ago I wonder if conditions have changed and if the information contained in the answer still applies today. Maybe a law was recently passed that changes everything... Maybe someone who wasnt previously a member of the forums when other questions were asked has better information today? Also, remember that these forums have thousands and thousands of questions, answers and information burried in them. You may not always run into your answer after a search. In asking my question JayRizzo, I wasn't looking for comforting. I was looking for help and was open to any answer or truth. I did something after thinking about it and then wondered if it was the right thing to do. i will bet that at some point in your life you have done the same. Perhaps even recently! Please try to be tolerant of others who may not be as wise, successful and informed as you are. Everyone is coming from a different place and financial situation. Some are just beginning their journey to recovery while others (assuming YOU) have learned it all and can sit on their throne and criticize what they deem as bad judgement by making biting comments. Boy I would really hate to ever be that way. If I ever I get to that place where I know it all I do hope that I remain kind and thoughtful towards others. Thanks for the lesson.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

JayRizzo — Mon, 31 Jan 2011 11:58:55 GMT

Well, to put a nice ending to this story... I never once claimed to know or have done it all or even insinuate sitting on a throne. In fact, I stated that I was asking a question in order to understand something, myself. I'm a regular member like most of us. I'm not a moderator nor a super-contributor. I'm kind, thoughtful, and bring a good sense of humor to many of the threads to let others know things will be okay, especially those currently fighting CAs. If any of us read into comments as harsh or critical, then it just may be that dose of "tough love" or "truth" to prevent each of us from doing the same thing or to take additional steps necessary to avoid adverse action.

This forum is a great knowledgebase! I visit as often as my busy schedule would allow in order to keep up on those latest changes you spoke about or to provide my own 2, 2.5, or 3 cents worth of advice. You did receive a wealth of knowledge and direction from members, thus far, but I'm 110% sure you would have received even more including being pointed in the right direction to the latest and greatest "updated" information with links or someone posting their recent experience if your question was prior to applying as a member just thinking of applying for a 3rd card...Good idea / Bad idea? Again, just my 3 cents worth.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

Smug — Mon, 31 Jan 2011 12:59:03 GMT

I have to agree with JayRizzo on this one.

Re: 2 low limit cards..approved for 3rd. Is it a good idea?

woozy — Tue, 01 Feb 2011 02:50:52 GMT

Do you guys think there's any chance that the op could call a backdoor number and get an HSBC with the pull instead of an Orchard? I got an HSBC when I was a nobody, and they gave me $2000. The interest rate is poo, but I don't care, it's a credit building device.

BTW, rumor and hearsay have zip to do with a persons personal observation and opinion, no matter how harsh the opinion. In fact, rumor and hearsay are the dictionary opposite of an observed opinion.