I also didn’t really think about how prime lenders look @ subprime cards /bc @ the time I started to rebuild, I needed a ‘rebuilder’ card (have to start somewhere, right?) and first premier and orchard fit the bill. Due to my travel needs, when they offered me 2nd cards, I thought ‘great, now I won’t have to juggle my ccs/debit cards each month to book flights/hotels.’ It’s not so much the flights that were killing me, but rather hotels b/c often, when I’d book a room, they’d want to put a ‘hold’ of $100+/night on my CC. Makes it tough to do when your CL is 300.
Reading this forum and some other boards (and articles/books about credit) indicates that even if you ‘do all the right things’ w/’subprime ccs’, they’re still somewhat frowned upon by ‘prime lenders.’ I’ve not determined the ‘right time’ to close out subprime ccs, and some people just sockdrawer them to keep the TLs open. From my own experience, it seems like my FICOs have ‘stalled’ in the high 500s despite no new ‘baddies’ since 06 and despite my ‘perfect history’ w/first premier and orchard, so I can’t help but wonder if there comes a point where ‘subprime’ cards hurt you (or at least stall rebuilding?) to some degree. It’s kind of frustrating as I feel like I’m going ‘sideways’ to some degree (ex., the only mail preapprovals I get are from subprime lenders like tribute, continental, credit 1, cortrust, etc.). rather than take on any new ‘subprime’ cards, I’m just ‘laying low’. While the BA 99/500 is a secured card, at least I feel like I’m ‘moving up’ a bit as I know it will become unsecured in 6-12 months and if things go as BA’s indicated, I’ll get healthy CLIs and get my foot back in the door w/a ‘prime lender.’ Perhaps other ‘prime lenders’ will see how well I behave w/cap 1 and BA (my first ‘new’ credit cards in just over 1 yr) and they’ll extend me some offers down the road?
Apparently it’s more ideal (and favorable in the views of ‘prime’ lenders) to have 2 CLs of say 2k+ than 6 different CCs w/CLs of 250-300 each, so that’s why I’m trying to consolidate my subprime cards. Plus, in the back of my head, I’m a little worried about having all these ccs as in my 20s, having multiple ccs is what got me into trouble as it can be so easy and tempting to start using credit because it’s ‘there.’ However, I’m MUCH more responsible w/$ now (low utilizations, pay in full, pay cash for most items, etc.), but I guess the fear from the ‘dark days’ will always linger and I do NOT and will NOT go back there, so I’d rather keep the # of ccs I have to a minimum. It was most satisfying when I recently paid off my 4 first premiers and orchards and literally removed them from my wallet (to avoid temptation) and set them aside. If a true emergency arises, I can/will use them, but for now, I’d like to ‘hide them’ and start utilizing my ‘new’ TLs (BA, Cap 1) to build some ‘new’ history.
I’ll try to consolidate w/orchard first as supposedly they’re more ‘friendly’ about it and will often also offer you a CLI at the same time. As I’ve not had a CLI @ all w/orchard since I’ve been w/them for just over 1 year and since I’ve had a ‘perfect history’ w/them, I’m hoping they’ll accommodate my request. Perhaps down the road, I’ll be able to graduate to a higher/better CL w/HSBC. Supposedly, orchard cards have a ‘max CL’ that’s fairly low ($3k), so the card doesn’t appear to be 1 that will ‘grow’ w/you.
I’m going to keep my ‘subprime cards’ through @ least early 2009 as that will give me 2 years of ‘perfect history’ w/them and it will also give me time to builld nearly 1 year of ‘perfect history’ w/my new ‘slightly better/prime’ ccs like cap 1 and BA. I plan to get an auto loan in the next 3-12 mos. and possibly a personal loan, so I thought cap 1/BA ccs would help me ‘build a relationship’ w/them (I also have BA checking and saving accts- as well as checking/savings @ citibank) and so hopefully, as my FICOs rise, perhaps BA will offer me 1 of their ‘regular’ cards. supposedly, once the 99/500 card unsecures, BA often offers you your 1st choice ‘regular’ card. At least that’s what their website said and I’ve read about people starting w/the 99/500 BA and then being able to get another BA cc w/limits of 5k+. supposedly as your CLs rise (which Cap 1/BA are supposedly generous about CLIs, but it varies by person), ‘prime lenders’ start to knock on your door if they see CLs of 1k+/cc.
btw, i don't know what Cap 1's desired FICOs are, but when i recently got approved (1 week ago), they pulled EQ and i had a score in the high 500s, so maybe you want to give them a shot? Cap 1, HSBC, and BA all have 'preapproval' pages that are soft pulls (don't ding you on 'hard' inquiries unless you apply), so maybe you want to check there and see if you can get some new CCs? When I tried BA, they only showed me their $300 secured card (put up 300 and that's your limit), but i decided to apply for a 'regular card' anyway. BA rejected me (based it on EX which is lower than my EQ), but right when i applied, up popped their offer for the 99/500 card, so maybe the same will happen for you?
