@Anonymous wrote:I was really hoping that the point i was trying to make was understod correctly.lets say u are the Underwriter and are thinking about approving a customer with Capitalone road to credit typocreditcard.Now u are ready to go up to the next level applying for a chase freedom.Why would the underwriter grant you a new prime card when in his mind his thinking ok.. iam dealing with a customer that have been with a rebuilder credit company and does not even have the neccesery experience for a prime 5k credit card.Now when he see that u are no longer willing to do business with a subminus lender closing the suprime credit card and are ready and or taken the neccesery steps to go to prime lender he most likely be serious with your application for credit
Because the lender realizes that everyone has to start somewhere; after all, no one is born with the experience to qualify for a 5K card right off the bat. Closing the subprime card doesn't indicate that you're ready to move on and are taking the necessary steps to be approved by a prime lender; it simply means that you have closed an account in good standing. Keeping the account open shows that you have valued the relationship that you have built with your current lender, and the prospective lender can expect that you will value the relationship with them, as well. One thing that lenders don't care to see is accounts constantly being opened and closed -- who wants to approve you for an account if it looks like it will be closed a few months later, which some people indeed do?
So, what is a prime lender likely to think when reviewing the applicant's file? "Yes, the applicant has starter and/or rebuilder cards, but has been managing these accounts well. They meet our underwriting criteria for risk and have a good debt/income ratio. This person has done well by Cap1, and will likely do well by us. We'd like to be able to take this account away from Cap1 by offering him/her a more attractive card."
See how that works? 
Look iam on the phone with underwriters all the time due to the business relationship of 175.000$ with Chase and Bank of america,I wouldnt sugest it if i dint hear it straight from the source.I hear and agree with you on principal but you know and i know they are not always underwriting base on the book.They are simply not happy to see those accounts on your credit report.YES the rebuilder card is neccesary to get you from A TO B but.....not to C
It's always a YMMV type of thing. But no, having a Cap1 will not stop any UW from granting you credit. If you took everything that BOA CSRs tell people to heart, then the credit world would be in worse shape than it is. I've seen and personally witnessed some of the things they say, and often they don't have a clue. If the creditor doesn't want my business, believe me someone else will. Cap1 serves its pupose and serves it well. Sometimes they are prime, other times not so much. But if they get your foot in the credit door, then use them.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
