topic Re: Difference between prime and subprime? in Credit Cards

Difference between prime and subprime?

krushin84 — Sun, 05 Aug 2012 18:56:48 GMT

New to the forums and couple things stuck out at me. I dont the difference between prime and sub prime. Looking for advice.

Recently my Amex blue cash card has been up to. 12k. Have a capital one card that's at 6.5k but no sure if It's that
High cuz they kept the cl that chase was using. Also have a 6.5k on HSBC. Now that capital one has bought HSBC should I be lookin to dump my cap one cards? I been forced into capital one cards never applied to them. I had a Sony rewards chase card that turn into a capital one card.

Re: Difference between prime and subprime?

iMacDrew — Sun, 05 Aug 2012 19:04:22 GMT

@krushin84 wrote:
New to the forums and couple things stuck out at me. I dont the difference between prime and sub prime. Looking for advice.

Recently my Amex blue cash card has been up to. 12k. Have a capital one card that's at 6.5k but no sure if It's that
High cuz they kept the cl that chase was using. Also have a 6.5k on HSBC. Now that capital one has bought HSBC should I be lookin to dump my cap one cards? I been forced into capital one cards never applied to them. I had a Sony rewards chase card that turn into a capital one card.

Velcome! Prime to me is a card with a No AF or an AF that basically pays itself off with rewards, something with a decent APR, and a card that typically requires a relativly high credit score. Subprime to me is a card with an AF with crappy rewards and a high APR for no reason..

You have 3 credit cards from what ive read and would keep all of them especially with those CL. assuming that your AF isnt outrageous. If you dont like those cards apply for cards you do like and dump them down the road once those cards establish high credit limits and age.

Re: Difference between prime and subprime?

tcbofade — Sun, 05 Aug 2012 19:09:43 GMT

"Prime" is a relative term.

I've got an HSBC card that I've had for nearly five years...most on here would call it "sub prime", but it's 2% cash back is the best rewards card I've got...it does have an AF, but I generally earn $200- $250 cash back in year, which MORE than covers the $39 annual fee.

Re: Difference between prime and subprime?

Anonymous — Sun, 05 Aug 2012 19:18:33 GMT

I don't think an annual fee card with decent rewards would be subprime. After all, a lot of the good Amex cards have annual fees, and no one would call Amex subprime.

Re: Difference between prime and subprime?

iMacDrew — Sun, 05 Aug 2012 19:20:48 GMT

@Anonymous wrote:
I don't think an annual fee card with decent rewards would be subprime. After all, a lot of the good Amex cards have annual fees, and no one would call Amex subprime.

absolutely not! American Express imo is probably the hardest lender to obtain a membership with!! as far as credit union goes i think Penfed platinum rewards is right behind american express.

Re: Difference between prime and subprime?

krushin84 — Sun, 05 Aug 2012 19:25:44 GMT

All of my cards have no af.

was actually just looking into trasffering a balance from my cap1 card to my amex.

my cap1 is at 4k out of 6k. and my amex is at 500 out of 12k.

never done a balance transffer though. gotta look more into this.

Thanks for the replies btw.

been scared of all the cap1 threads saying they dont grow and give out cli.

Re: Difference between prime and subprime?

Anonymous — Sun, 05 Aug 2012 19:47:26 GMT

@krushin84 wrote:
New to the forums and couple things stuck out at me. I dont the difference between prime and sub prime. Looking for advice.

Recently my Amex blue cash card has been up to. 12k. Have a capital one card that's at 6.5k but no sure if It's that
High cuz they kept the cl that chase was using. Also have a 6.5k on HSBC. Now that capital one has bought HSBC should I be lookin to dump my cap one cards? I been forced into capital one cards never applied to them. I had a Sony rewards chase card that turn into a capital one card.

There is no official distinction, it is in the eyes of the CC holder. If you think the CC terms are good for your credit situation, that would be prime for you, if you consider them bad for you, it is subprime.

If you don't like your Capital One, close them. Closing them because someone else thinks they are sub prime is a silly reason.

Re: Difference between prime and subprime?

Anonymous — Sun, 05 Aug 2012 20:02:13 GMT

@tcbofade wrote:
"Prime" is a relative term.

I've got an HSBC card that I've had for nearly five years...most on here would call it "sub prime", but it's 2% cash back is the best rewards card I've got...it does have an AF, but I generally earn $200- $250 cash back in year, which MORE than covers the $39 annual fee.

I have a similar card but with no af. Funny thing is clam waiting for it to gO to cap one but nothing so far. 2% on visa/mc is great. Prime and subprime don't mean much when it comes to credit cards anymore. Originally referred to whether or not borrower got prime rate or below. Now more a matter of perspective.

Re: Difference between prime and subprime?

Anonymous — Sun, 05 Aug 2012 20:14:10 GMT

@Anonymous wrote:
@tcbofade wrote:
"Prime" is a relative term.

I've got an HSBC card that I've had for nearly five years...most on here would call it "sub prime", but it's 2% cash back is the best rewards card I've got...it does have an AF, but I generally earn $200- $250 cash back in year, which MORE than covers the $39 annual fee.
I have a similar card but with no af. Funny thing is clam waiting for it to gO to cap one but nothing so far. 2% on visa/mc is great. Prime and subprime don't mean much when it comes to credit cards anymore. Originally referred to whether or not borrower got prime rate or below. Now more a matter of perspective.

Not all HSBC cards were transferred to Capital One, I think you are stuck with HSBC.

Re: Difference between prime and subprime?

Revelate — Sun, 05 Aug 2012 21:00:45 GMT

If you can regularly qualify with a score beneath 680 = subprime. And that's a pretty arbitrary figure these days too.

You can't really call many lenders prime or subprime these days, anyone prime only is moving into subprime (see: Amex Zync) faster than, insert your own overly colorful euphemism here.

Amex Zync = subprime. Amex BC Anything = prime

Chase Freedom = subprime *and* prime, Chase Sapphire = Prime

Discover More = subprime.

These cards have plenty of rewards, some have AF's, some don't, and the line is blurring all the time. I have a 5K BOFA 1-2-3 rewards card... prime or subprime? Without the information that it's secured, it's probably prime; however, it is secured = subprime, yet still a good card.

The whole distinction is really pretty moot: that Orchard card tcfobade has: originally subprime no doubt, and now with a most excellent reward tacked on to it (2% on ALL SPENDING), which I don't know of any other lender matching, including the big 5ish.

Re: Difference between prime and subprime?

LS2982 — Sun, 05 Aug 2012 21:06:41 GMT

@krushin84 wrote:
New to the forums and couple things stuck out at me. I dont the difference between prime and sub prime. Looking for advice.

Recently my Amex blue cash card has been up to. 12k. Have a capital one card that's at 6.5k but no sure if It's that
High cuz they kept the cl that chase was using. Also have a 6.5k on HSBC. Now that capital one has bought HSBC should I be lookin to dump my cap one cards? I been forced into capital one cards never applied to them. I had a Sony rewards chase card that turn into a capital one card.

Prime cardfs are cards that have great rewards, high CL's, in most cases no AF's, and will grow with you. Do your current cards fit this bill?? I would say for sure your AMEX is.

Do the Cap 1 cards have:

-AF's?

-Good rewards?

-have they incresed the lines any?

Those are some of the things to think about before axing a card.

Re: Difference between prime and subprime?

LS2982 — Sun, 05 Aug 2012 21:10:07 GMT

@Revelate wrote:
If you can regularly qualify with a score beneath 680 = subprime. And that's a pretty arbitrary figure these days too.

You can't really call many lenders prime or subprime these days, anyone prime only is moving into subprime (see: Amex Zync) faster than, insert your own overly colorful euphemism here.

Amex Zync = subprime. Amex BC Anything = prime

Chase Freedom = subprime *and* prime, Chase Sapphire = Prime

Discover More = subprime.

These cards have plenty of rewards, some have AF's, some don't, and the line is blurring all the time. I have a 5K BOFA 1-2-3 rewards card... prime or subprime? Without the information that it's secured, it's probably prime; however, it is secured = subprime, yet still a good card.

The whole distinction is really pretty moot: that Orchard card tcfobade has: originally subprime no doubt, and now with a most excellent reward tacked on to it (2% on ALL SPENDING), which I don't know of any other lender matching, including the big 5ish.

I wouldn't call AMEX Zync subprime. It's AF is low compared to others and its a charge card. The rewards arent on the same level as other AMEX charge cards but it's decent.

Re: Difference between prime and subprime?

DaveSignal — Sun, 05 Aug 2012 21:18:49 GMT

I think of subprime as a card that is targeted toward a subprime market of consumers. In order to mitigate the inherent risk in issuing credit to this subprime market, these lenders compensate by imposing high fees and interest rates, low credit limits, and usually no rewards. These lenders have their place and it is often the only way for consumers with subprime credit ratings to build a history sans going the secured route. These cards are not meant to be kept forever, especially after a consumers credit rating becomes 'prime' for the big banks goals of issuing significant credit to quality clientele.

Re: Difference between prime and subprime?

Revelate — Sun, 05 Aug 2012 21:28:24 GMT

@LS2982 wrote:

I wouldn't call AMEX Zync subprime. It's AF is low compared to others and its a charge card. The rewards arent on the same level as other AMEX charge cards but it's decent.

It's designed as a product for people with six months history (students), or one for people recovering from prior credit issues. With a rough 640 FICO requirement, and being able to qualify for one as a near thin-file, how is it prime?

By a pure FICO measurement, I could assert none of the Amex charge cards are prime.

Re: Difference between prime and subprime?

LS2982 — Sun, 05 Aug 2012 21:44:57 GMT

@Revelate wrote:
@LS2982 wrote:

I wouldn't call AMEX Zync subprime. It's AF is low compared to others and its a charge card. The rewards arent on the same level as other AMEX charge cards but it's decent.

It's designed as a product for people with six months history (students), or one for people recovering from prior credit issues. With a rough 640 FICO requirement, and being able to qualify for one as a near thin-file, how is it prime?

By a pure FICO measurement, I could assert none of the Amex charge cards are prime.

The ones that get approved with a 640 are more than likely the ones with hard limit/autopay tacked on to it. AMEX is a prime lender to me no matter what the card is. It may not be to others but thats perfectly fine. It felt extremely good to get in with them with a 700 score when they declined me twice with a 640 and and 670.

Re: Difference between prime and subprime?

CreditCrusader — Sun, 05 Aug 2012 22:01:55 GMT

@Revelate wrote:
@LS2982 wrote:

I wouldn't call AMEX Zync subprime. It's AF is low compared to others and its a charge card. The rewards arent on the same level as other AMEX charge cards but it's decent.

It's designed as a product for people with six months history (students), or one for people recovering from prior credit issues. With a rough 640 FICO requirement, and being able to qualify for one as a near thin-file, how is it prime?

By a pure FICO measurement, I could assert none of the Amex charge cards are prime.

That's a pretty low bar you have set. Some people with 700+ FICO scores have 6 months of personal credit history combined with 30 years of piggybacked credit as an AU. Plus, I read of BOA, Discover and Citi giving people with 640 FICOs their "prime" products. To disparage AMEX Zync is to label the others "sub-prime" as well.

IMO, AMEX is prime...period.

Re: Difference between prime and subprime?

CreditCrusader — Sun, 05 Aug 2012 22:03:26 GMT

@LS2982 wrote:
@Revelate wrote:
@LS2982 wrote:

I wouldn't call AMEX Zync subprime. It's AF is low compared to others and its a charge card. The rewards arent on the same level as other AMEX charge cards but it's decent.

It's designed as a product for people with six months history (students), or one for people recovering from prior credit issues. With a rough 640 FICO requirement, and being able to qualify for one as a near thin-file, how is it prime?

By a pure FICO measurement, I could assert none of the Amex charge cards are prime.

The ones that get approved with a 640 are more than likely the ones with hard limit/autopay tacked on to it. AMEX is a prime lender to me no matter what the card is. It may not be to others but thats perfectly fine. It felt extremely good to get in with them with a 700 score when they declined me twice with a 640 and and 670.

Heck, AMEX won't let me in with 700+ FICO scores and AAoA of 10 years and no lates due to a BK7 over piles of medical bills that would have destroyed my financial life (but saved my son's life). I'd say that's a prime lender any way you slice it.

Re: Difference between prime and subprime?

MarineVietVet — Sun, 05 Aug 2012 23:18:44 GMT

@Anonymous wrote:
There is no official distinction, it is in the eyes of the CC holder. If you think the CC terms are good for your credit situation, that would be prime for you, if you consider them bad for you, it is subprime.

If you don't like your Capital One, close them. Closing them because someone else thinks they are sub prime is a silly reason.

I agree. It all comes down to personal opnion and where you are in your credit journey.

Re: Difference between prime and sub-prime?

jamesdwi — Sun, 05 Aug 2012 23:27:57 GMT

Zync with Hard limit 250/500 my be the bottom of the list prime card but a ZYNC NPSL most definitely is a prime card, I dare you to find a sub-prime card that will grow your limit to $3500 in 11 months? And mine is probably higher and the Max I have ran through mine is about $1100... Typical month is $600. Others here have pushed 2-3k and have much higher limits even with sub 700 ficos.

Re: Difference between prime and subprime?

Repo-ed — Mon, 06 Aug 2012 01:38:12 GMT

So the AMEX Platinum w/ $450 AF is not a prime card?