Is Apple GS Card considered as Prime Card and CLIs

[Aim_High]

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@Remedios wrote:

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@Anonymous wrote:

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@Remedios wrote:

What's a prime card? 

My Amex has $29K limit and payday loan APR at 24.47% 

My little $500 CU card from eons ago has 5.99% apr. 

Which one is which? 

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Where are you getting payday loans with that APR!   That's more like a monthly one.

Payday loans: Map shows typical APR in each state (cnbc.com) give 391% as the typical payday rate in WA.   So, the Amex is prime!

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I dunno, I think I'm supposed to be offended by APR on one and limit on the other one. 

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This prime-subprime topic has come up a lot lately and why I linked to other threads in my message above.  It's an interesting topic and I think it's easy to try to oversimplify instead of seeing it in shades of gray.  I believe that determining whether a card is more oriented towards a "prime' or "subprime" consumer depends on looking at the entire package to include credit limit, APR, fees, rewards, and other terms of service.   And all of that needs to be done in the context of what the average similar mainstream credit cards offer.  In the case of @Remedios above, as long as the AMEX has lucrative rewards and a generous credit limit, I would consider that a "prime" card even with a higher APR since rewards cards typically charge a higher APR anyway.  And even with a low $500 credit limit, if that credit union card isn't charging an annual fee or other excessive fees, I would also consider it "prime."  So I think the answer is not which one is subprime, but neither.  

I see card offerings on the subprime-to-prime scale as a continuum with all of those factors.  For example, seriously-subprime card might have a high application fee, an annual or even monthly maintenance fee, high late fees, no rewards, low limits, a high APR, or require a security deposit.  A moderately-subprime card might have some but not all of those traits.  A neutral card might not have annual fees or low limits but might have a higher APR or no/low rewards or both.  A moderately-prime card might have few or no fees but lower rewards.  And a full "prime" card might offer much better rewards, perks, or higher credit limits.  I think the highest level of prime cards can start to get confusing again because they tend to start adding back in more annual fees or higher APRs than the moderately-prime cards (like the AMEX example) but in lieu of that, they pay high rewards and perks as well as offer credits for using the card in certain ways.  

This why I groan when I see questions asking if a certain lender or card is subprime.  Consumers are subprime or prime.  For cards and lenders, well, it usually depends and more information is needed. 

[Anonymous]

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@Aim_High wrote:

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This why I groan when I see questions asking if a certain lender or card is subprime.  Consumers are subprime or prime.  For cards and lenders, well, it usually depends and more information is needed. 

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I agree, and in some ways I stop the analysis there rather than go into the sort of details @Aim_High mentions.    At best, a "true" subprime card is one that caters more or less exclusively to customers with subprime scores/records and, to make sure that such consumers are suitably grateful, tack on all sort of fees, low CL and high APR.     And as it might be hard for someone to know clearly the target audience of a particular card, things like these fees act as proxy for identifying them.

When people ask if a card is prime, it could mean "Is this card good?", which has the answer (if not NO!!!!) "It depends on your spending patterns and your goals and your other cards"  But often it seems to mean something like "Would this card show I am done (or getting done) with rebuilding"

[Anonymous]

I very much agree with @Aim_High and the statement that consumers are prime or subprime. There are certainly lenders that specifically target subprime markets and if you are a prime consumer you should stay away from them, as there are better options out there for you. That being said, I don't believe you are going to be hurt when applying for new credit if you only have accounts from lenders that target subprime markets. Which seems to be a thought that many people have during/after rebuilding.