Dead end credit cards vs Keep forever credit cards

[Anonymous]

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Don't ever default on a Capital One.

EVER

They will stay on your report until the very last day possible, will not PFD, probably don't GW, and will actively mess with your credit report even in the last 2 years before their negatives fall off.

YMMV, but from personal experience I can see why they have no problems handing out more low limit cards instead of CLIs, for LEVERAGE, as well as for Afs.

Message Edited by reots on 03-05-2009 06:18 PM

[Guardian]

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@shalane85 wrote:
What kind of rewards can you get with prime cards? I know about cash back and apr, but exactly how does that work? Someone made the comment that you can make money off of your cards. How is that possible?

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They have the added value of how other creditors see and respect and evaluate them too, being on your report. If certain companies have stringent or high standards, then that is a good sign that you got a card with them, it will carry more weight with anyone looking over your credit.

[Guardian]

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@Anonymous wrote:

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Don't ever default on a Capital One.

EVER

They will stay on your report until the very last day possible, will not PFD, probably don't GW, and will actively mess with your credit report even in the last 2 years before their negatives fall off.

YMMV, but from personal experience I can see why they have no problems handing out more low limit cards instead of CLIs, for LEVERAGE, as well as for Afs.

Message Edited by reots on 03-05-2009 06:18 PM

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Their practices are less than ethical, so yeah you don't want to deal with them if you can avoid it.

[Anonymous]

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@Guardian wrote:

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@shalane85 wrote:
What kind of rewards can you get with prime cards? I know about cash back and apr, but exactly how does that work? Someone made the comment that you can make money off of your cards. How is that possible?

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They have the added value of how other creditors see and respect and evaluate them too, being on your report. If certain companies have stringent or high standards, then that is a good sign that you got a card with them, it will carry more weight with anyone looking over your credit.

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Is that true?  I didn't know certain cards carried more weight, so to speak.  

oh, a whole new topic to research!  

Amex used to be THE card, back in the day.  Now I get the sense it's has lost its cache and can actually be a hassle.

[Guardian]

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@Anonymous wrote:

Is that true?  I didn't know certain cards carried more weight, so to speak.  

oh, a whole new topic to research!  

Amex used to be THE card, back in the day.  Now I get the sense it's has lost its cache and can actually be a hassle.

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Its anecdotal evidence and not a rule that is written somewhere. But I know a lot of great people on this forum who can weigh in on this one.

[haulingthescoreup]

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Guardian wrote:

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@Anonymous wrote:

Is that true?  I didn't know certain cards carried more weight, so to speak.  

oh, a whole new topic to research!  

Amex used to be THE card, back in the day.  Now I get the sense it's has lost its cache and can actually be a hassle.

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Its anecdotal evidence and not a rule that is written somewhere. But I know a lot of great people on this forum who can weigh in on this one.

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Many lenders are pretty chicken, and they love to play follow-the-leader.

You do get a halo effect from "good" cards, as well as from higher-CL cards. We hear about this a lot, as rebuilders start moving out of the $200-$300-$500 CL cards into $1K and above. As they start closing the lower-limit cards, the newer ones seem to get better. Sort of a lender snowball!

[YoungEntrepeneur]

I felt insulted when AMEX decreased my limit by 50 percent from $1,000 to $500. I didn't have a balance on the card and use it once a month to keep it active. I called and told them to close my account.

[shalane85]

I can only imagine how mad that may have made you feel but cc companies are only taking drastic measures due to the current credit crunch. I wouldnt suggest closing prime cc  b/c this epidemic is only temporary.

[hawkeye33]

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@WhirledPeasPlease wrote:

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@haulingthescoreup wrote:
Cap One does have some good cards, and we'll probably hear from some of the members who have them, if they haven't gotten tired of speaking up for C1, lol.

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You rang?  LOL!

I opened a Cap1 acct in Jan 08 w/ a 3k limit (wow at the time).  I figured I had the card that ranged from 300-3k, so therefore I'd hit the ceiling on day one.  Not so.  I went from 3k to 3750 to 4250 and again to 5250.  I asked the CSR about my ceiling and was told hit would be awhile before I hit it.  Who knows where it is, but I got the feeling I'm not really close.

This is a boring no rewards Plat MC w/ a nice IR for someone w/ my scores (640s to 680s).  Good BT offers most of the time as well.

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I second this (as of this afternoon). I got my Capital One Platinum Mastercard in the mail today. I have also been rebuilding. My only open revolvings prior to this card were Credit One VISA ($400 CL / started at $200 in 05/2008) and Orchard Mastercard ($420 CL / started at $300 in 05/2008). I had been reading threads with people who had gotten some bumps from these cards (especially Orchard), but even backdoor numbers recently had only yielded $100 increases.

Based on this, as well as the fact that I had a Capital One MC ($300 CL) back in 2004 that went over limit and then to collections, I was expecting the minimum $300 CL with this new Capital One card. To my surprise, I'm finally one of those success stories, getting $3K CL to start with. And, i'm on the Steps program, so I'll get a bump up in 4 months.

Yes, still a sub-prime card, but I'll stick up for Capital One (at least for tonight).

One note on this. I have been getting LOTS of preapprovals from Capital One in the mail for the Platinum MC with $39 annual fee. I actually went out on their web site and entered some basic info, and it provided me with the list of cards for which I was preapproved. There were two flavors of the Platinum MC, one with a $39 annual, one with $0 annual. So I chose the $0 annual and was approved.

Very happy with $3K starting limit and ZERO annual fee!

[cobaltnv]

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@shalane85 wrote:
What kind of rewards can you get with prime cards? I know about cash back and apr, but exactly how does that work? Someone made the comment that you can make money off of your cards. How is that possible?

 It is not hard to make money off your credit cards. My wife and I charge ~$2-3k per month on our cards and always pay in full. Since we pay in full we pay no interest. So we have no annual fees and pay no interest so our charging costs us nothing. Now you factor in that the cards we charge everything on have between 1 and 3% rewards (cash back). We are currently making ~$50/months off of our credit cards.