PRIME VERSUS SUBPRIME

[Anonymous]

I hear alot of conversating about which card is which type?  So are most cards like WAMU HSBC CAP1 JUNIPER HOOTERS & store cards considered SUBPRIME? and DISCOVER AMEX and others from major banks and credit unions considered PRIME?

[Anonymous]

I thought WaMu was considered prime

[Anonymous]

This question is a difficult one as most of the prime banks even have subprime offers/and or subprime unit- ex. is Wells Fargo vs. Wells Fargo Financial I believe (if I am wrong someone plz. correct me)- where Wells Fargo is prime.

It is generally agreed that the following are prime even w/ their ridiculous interest rates- plz others add to the list:

Chase

Citi

Wamu

BankOne

5/3 Bank

Discover

Amex

Now some lists will include the following- which leads to huge arguements cuz in some cases they can be prime and in other cases subprime:

Captial One

Providian

MBNA

So- here is the deal- ALL of the prime lenders issue subprime products and secured cards but are viewed as PRIME lenders,

and yet SUBPRIME lenders offer some very limited "what cans be considered prime" produsts esp. from HSBC, Orchard and Junny/Barclays.

For example HSBC and Orchard have black cards that one would need to have close to 700's and up to app and recieve.

[haulingthescoreup]

It makes for fun arguments! The important thing is that the issuer makes no difference in how a card is scored.

There is a difference is scoring for store cards vs bank cards. If you card has the words VISA, Master Card, American Express, or Discover on it, it carries more weight in your scores, regardless of whether it was issued by American Express, Citi, First Premier, or a credit union, or if it has a store name on it (for instance, a Citi Sears Mastercard and a Target VISA both are scored as bank cards.)

Bank cards are also called "majors."

There is an ongoing argument as to whether you need to have a retail (store) or gas card. It is listed as part of the credit mix, but so are consumer finance loans, which are negatives, so I'm not convinced one way or another.

But if all you have are store or gas cards, shoot for a bank card or two. If you have all bank cards, you may or may not "need" a retail/ gas card.

[Anonymous]

great info guys I appreciate it--I have 1 Cap1 card and HSBC card I am sure they are poss subprimes and then I also have a Walmart card which I got this past week--I also have 2 WAMU and 1 Juniper so I think I may have a good mix--I was offered a Shell gas card preapproved from Citi Financial I think--they sent it in the mail with the confirmation of my auto refinance with them--I may get that card and then just chill for awhile I think I have a comforatble mix of credit--considering I cant get an AMEX sicne prev BK--now I am just going to work on getting GW letter accomplished for old lates on my account which are all 12 mos or older--and a few Collection ACCTS from years ago would look good removed as well--thanks guys again for your input

[Anonymous]

That Shell Gas card would be a good thing to have to increase your insurance scores.  They like you to have an oil company card.  They say it means that you'll take care of your car better.  I'm not really sure why this is since I haven't been to a Shell station in probably 20 years that you can get your oil changed, and Jiffy Lube won't take the Shell card, but there ya have it  LOL.

Van

[haulingthescoreup]

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@Anonymous wrote:

That Shell Gas card would be a good thing to have to increase your insurance scores. They like you to have an oil company card. They say it means that you'll take care of your car better. I'm not really sure why this is since I haven't been to a Shell station in probably 20 years that you can get your oil changed, and Jiffy Lube won't take the Shell card, but there ya have it LOL.

Van

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OMG, that is hilarious! And these people are in charge of our insurance. sigh

[fused]

I have never considered MBNA (while they existed) to be sub-prime or have sub-prime offers.

[Anonymous]

I think prime vs. subprime is in the eyes of the beholder.

The major bank cards are imo, prime. This includes Cap1 & Juniper/Barclay's.

But they also offer starter/rebuilder cards. So I guess it comes down to credit limit on a particular card which makes it one or the other.

I have both a Juniper and HSBC cards with low cl's, sooooo I consider them subprime.

If any of that makes sense.