A Few Questions

[flapjack]

If I close an account, is it removed from the AAoA calculation at that time, or does it continue to age closed until it falls off ? The second question, is what constitutes a sub-prime card, a particular ccc or just certain lines they provide which are available with less than good credit ? Along those lines, should one work to get rid of sub-prime cards so long as they can work around the AAoA and utlization issues ?

[MarineVietVet]

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@flapjack wrote:

If I close an account, is it removed from the AAoA calculation at that time, or does it continue to age closed until it falls off ? The second question, is what constitutes a sub-prime card, a particular ccc or just certain lines they provide which are available with less than good credit ? Along those lines, should one work to get rid of sub-prime cards so long as they can work around the AAoA and utlization issues ?

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Hi there.

Any closed account in good standing will usually report for up to 10 years after closing which helps your AAoA and credit length history. Here is a good thread about Closing Credit Cards.

As for your question about sub prime cards I will let others answer that because I'm not sure what is considered sub prime.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[vish1]

Sub prime cards may have a different definition for everyone. For me, I separate cards as prime and subprime based on the business model of the issuer. If the issuer intends to make money from the merchant by virtue of me using the card, it would most probably be prime. If the issuer intends to make money from my like AF, setup fee, CLI fee, astronomical APRs etc etc they are definitely sub prime

If the cards are from any of the following issuers, they most probably fit my definition of subprime

1. Issued by FP

2. Issued by orchard

3. Issued by credit one

4.

5.

6.

7. Capital One (I know they have a venture card, but when I see someone using a cap1, i know they had sumth wrong with their credit. Though, I won't feel the same if I saw someone using cap 1 venture card, but I don't want others to think that I have bad credit by using a cap 1 card. Anyway, I left 4 empty slots to keep cap 1 away from fp/orchard/credit one as cap 1 is certainly way better than them. Call it semi subprime?

I am keeping store cards out of this as you don't really choose the issuer there, you actually choose the store.

[Walt_K]

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@vish1 wrote:

Capital One (I know they have a venture card, but when I see someone using a cap1, i know they had sumth wrong with their credit. Though, I won't feel the same if I saw someone using cap 1 venture card, but I don't want others to think that I have bad credit by using a cap 1 card. Anyway, I left 4 empty slots to keep cap 1 away from fp/orchard/credit one as cap 1 is certainly way better than them. Call it semi subprime?

I am keeping store cards out of this as you don't really choose the issuer there, you actually choose the store.

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I don't know if I would make that assumption, but I'm probably biased.  Back before I ran into credit trouble, I opened a Capital One No Hassle Miles card.  I had a USAir Miles Card (BoA) that I used for most everything, and I had a Discover and Amex, but I wanted a second miles reward card with no AF that wasn't tied to a specific airline.  I had seen some Cap One adverts so I applied for the card and got a $5000 CL.  I had no idea they were considered a rebuilder/semi-prime type company until I tanked my credit a few years ago and ended up here.  So maybe its just my initial experience with them, but I don't make any assumption one way or the other when I see a Cap One card.

ETA:  I take your overall point though.  It reminds me of an anecdote on askmrcreditcard.com.  When he reviews the Amex Platinum card he says it might be a more important card to have if you are in the service/entertainment business.  He relates a story of meeting with a couple financial advisers and they both offered to pay the tab after drinks or lunch (I forget).  Upon noticing that they offered to pay with either First Premier or Orchard platinum cards, he says he didn't let them handle his money.  So I suppose I better always use my Amex to pick up anything with clients and leave my CapOne in my wallet.   

[Anonymous]

There is no definition for Prime vs Sub Prime, that I know of.  

IMO, If you like the terms, and have a good experience, it is prime card.   If you don't like the terms, or have a bad experience, it is sub prime.  I think you also have to look at from your own creditworhiness.

Personally I would put Capital One in the prime category, since I think they offer some of the best terms when you consider your credit score.    I think American Express borders on sub prime, when you consider all the Adverse Actions, Finacial Reviews that they put their customers through.

[clocktick]

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@vish1 wrote:

7. Capital One (I know they have a venture card, but when I see someone using a cap1, i know they had sumth wrong with their credit. Though, I won't feel the same if I saw someone using cap 1 venture card

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That's interesting.  One of my best friends, with excellent credit, just applied (and was approved for) a Cap One No Hassles card because she's going to England and wanted a card with no transaction fees.  People apply for different cards for different reasons.   One doesn't always "know" why certain people have certain cards.

[MarineVietVet]

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@vish1 wrote:

. Capital One (I know they have a venture card, but when I see someone using a cap1, i know they had sumth wrong with their credit.

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Really? My oldest card is Cap 1.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[flapjack]

Thanks for the responses. I too have a cap one visa that's my oldest card at 10 yrs and one I was considering closing. I have never had any problems with capital one but then I've always been on time and given them no reason to have a problem me; Nonetheless, I am at a point where I want more from the cards I am carrying. I would consider keeping the card if they could upgrade/change it to a cash rewqrds card so perhaps it's time to give them a call and tell them what I want. If they say no, I say goodbye.

Along the way, I also picked up an HSBC card to do a BT but got a low $2000 CL. It was good for that and now it's paid and even though It's only a year old, I want to close it, Since opening, I have been bombarded with seemingly unlimited affiliate marketing campaign garbage via email, snail mail and every time I log in to manage the card. If nothing else, this makes it sub prime to me.