Effects of Closing Subprime Cards

[Anonymous]

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@crunching_numbers wrote:

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@ptkdude wrote:
Amex denied me because of an OPEN First Premier on my reports (it was included as a denial reason). Once it was closed, Amex approved me no problem.

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Of course, that was because the act of closing the card made you SO much more credit worthy..    Give me a break. That is the lamest denial I have heard yet.

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Amex wanted all the fees to themselves.

[laboi_22]

What about Orchard? I got approved for AMEX with a 300 CL Orchard account.

[Anonymous]

 The seriously sub prime cards like FP have terms with huge fees to open, monthly fees, no grace period, fees to get a CLI.   They are designed for people who have terrible credit. These are the type of cards to worry about.

Capital One and Orchard are much better than that, so no need to worry about them.  

[Anonymous]

Well, I guess I should revise my initial assessment.

If the only cards you have are subprime cards - no major bank cards - and you're barely meeting their other criteria, then I'm sure they'll count it against you. But if you have other cards, I doubt they'll deny you just on the sole reason of having some subprime cards.

When I was talking to the credit analyst at Chase on Friday, she commented on how I didn't have many "major bank cards" on my report - she said she only saw NFCU and BofA. Discover and Amex hadn't reported yet. So the two Cap One cards and HSBC card on my report weren't  something they'd consider major bank cards.

It's interesting since she mentioned my BofA and NFCU cards, my student loans and the store cards (Amazon/Walmart) but she said nothing about the subprime (Cap 1/Orchard) cards. So I'm not sure where they fall in their classification.

[crunching_numbers]

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@Anonymous wrote:

Well, I guess I should revise my initial assessment.

If the only cards you have are subprime cards - no major bank cards - and you're barely meeting their other criteria, then I'm sure they'll count it against you. But if you have other cards, I doubt they'll deny you just on the sole reason of having some subprime cards.

When I was talking to the credit analyst at Chase on Friday, she commented on how I didn't have many "major bank cards" on my report - she said she only saw NFCU and BofA. Discover and Amex hadn't reported yet. So the two Cap One cards and HSBC card on my report weren't  something they'd consider major bank cards.

It's interesting since she mentioned my BofA and NFCU cards, my student loans and the store cards (Amazon/Walmart) but she said nothing about the subprime (Cap 1/Orchard) cards. So I'm not sure where they fall in their classification.

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Apparently so far down that she felt they weren't even worth mentioning...

[Anonymous]

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@crunching_numbers wrote:

Apparently so far down that she felt they weren't even worth mentioning...

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Apparently! I thought it was funny coz she listed everything else except those. Since they're not "major" bank cards and she mentioned the store cards, they must be on some garbage tier below everything else.

Which is exactly why I wanted to get rid of them. Now if only HSBC would ever update the account as closed to the CRAs..

[Walt_K]

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@Anonymous wrote:

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@crunching_numbers wrote:

Apparently so far down that she felt they weren't even worth mentioning...

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Apparently! I thought it was funny coz she listed everything else except those. Since they're not "major" bank cards and she mentioned the store cards, they must be on some garbage tier below everything else.

Which is exactly why I wanted to get rid of them. Now if only HSBC would ever update the account as closed to the CRAs..

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Maybe she's just forgetting that Capital One is a major bank now.  They're not who you would think of as a major bank a few years ago.  But with all the acquisitions they've done over the last few years, they're a pretty major bank.  If they aren't, I don't know what qualifies as a major bank.  Wasn't the takeover of ING supposed to make them the country's fifth largest bank.  That's the reason the Fed Reserve originally looked into it because of the allegation that this might make Cap One too big to fail.

[Revelate]

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@laboi_22 wrote:
What about Orchard? I got approved for AMEX with a 300 CL Orchard account.

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Orchard cards report as HSBC to the bureaus, which is about as big as you get as banks go: there's no penalty as a result to an Orchard tradeline of this type, other than the invariable low CLs and the negatives associated with that.

[Tonya-E]

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@ptkdude wrote:
Amex denied me because of an OPEN First Premier on my reports (it was included as a denial reason). Once it was closed, Amex approved me no problem.

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I have seen this many times and I don't get it....I have an open FP and I didn't have a problem. I wonder what it is that makes them approve some with the card and some without. It is obviously not true in all cases.  What was the wording they used in denial? I am curious on this one.

[pizzadude]

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@tonyaether wrote:

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@ptkdude wrote:
Amex denied me because of an OPEN First Premier on my reports (it was included as a denial reason). Once it was closed, Amex approved me no problem.

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I have seen this many times and I don't get it....I have an open FP and I didn't have a problem. I wonder what it is that makes them approve some with the card and some without. It is obviously not true in all cases.  What was the wording they used in denial? I am curious on this one.

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If I recall the wording was something like "past experiences with others who have the same creditors" or something like that.    Basically your're not good enough because AMEX has problems with other people who had the same inferior CCs.  

No idea why they approve some people and reject others though.  It's all part of the smoke & mirrors behind the AMEX approval process.