Orchard question please.

They may waive the fee. Retention departments can usually do that.

Have you gotten some other cards to start building your history?

 

Teg,

I know you hate the annual fee, but if you can get the AF reduced, I think keeping the card is in your best interest for the larger picture. Since it is your oldest CC, it is worth it to hang onto it for a few years. Let the account age, and then when all your accounts have good history age, close it or renegotiate.

If you can get the AF down to a small enough figure, it's worth it just for the credit history.

 

I had an Orchard Card (silver), had it for about 2 years. They called offered me a platinum Orchard a year later. The card did exactly what it was supposed to do, i was able to build up my credit. Then Move on to better CC companies. My credit line was extended 1800 on the Silver from $300, The other card had a limit that was either $1500 or $1800.

I caution everyone here about Orchard bank. These guys are real sneaky if you let your credit limit build up. I got a letter out of the blue telling me they were going to increase my interest up to some crazy number 29% something like that. I called them and canceled my both cards. I was able to get better cards so it was no big deal. When I paid down the card and canceled, they wanted me to come back and offered me everything you could think of but i was done with them. That interest rate if I would have had a high balance and the wrong circumstances could have been deadly.

However, my advice to any one with a Orchard Card is don't carry a high balance. My record with them was perfect it had to be for me to have it increase that much in 2 years. Read all of your statements and communication because they will jack up the interest rate on you, atleast they did on me. Once you build up your history move on to something better, these guys are a stepping stone to something better.

 

I agree with Biz. $49 a year isn't a lot to pay for the history it will give you. In fact, if you have to get a car loan in the next few years, you may save that much in interest if it makes a score difference.

I'd wait until your cards are 3-4 years old before canceling.

 

There must have been something in your credit file to cause them to increase the rate. It didn't have to be something with them. It's called universal default, and if you have anything negative reported on ANY account (even if it's erroneous) they use that as justification to jack your rates.

 

I thought it was universal default as well, I pulled my credit. I feared Identity theft, because everything else was very smooth. Nothing, my credit score jumped a lot and at the time I had negative items but they were there when I got the card. They stated that they were doing this to a lot of card holders, that they had the option to change the terms on the card as they wish as long as I was given enough warning. They gave me about four months warning.

The worst part about orchard bank to me is that their call center is in the Philippines and you have to go through this song and dance to speak with some one that speaks fluent English and is based in the US. Trust me when i tell you these guys just jacked up my interest and they just did it because they felt like it, the only problem I could see is that they weren't making money off of me in interest, late fees, annual fees, etc. the predatory items they make their money on with their typical demographic. They also reduced my interest rate to 10% after I threatened to leave, but at the point it was to late. i was done with them and HSBC in general, I had my student loans, a car loan with HSBC, high interest savings account. I shut switched everything and I got a call from a relationship manager at HSBC and she apologized and told me some one dropped the ball. Honestly I think if the call center was in the US, some one would have exercised good judgment and it would not have went that far. At the end of the day though it all worked our for the best and if the call center comes back to the US you know why. It's because of Issues like this where it costs them money and good customers.

 

Keeping the car and paying off your bills is a wise decision. You're getting the hang of it--keep up the good work!!

 

Teg, to protect yourself from Universal Default, and help your credit scores, determine when your "closing date" is each month. Make sure to pay your account before this date. That way the account reports with a $0 balance every month. This little trick can give a big boost to your credit score (if you pay in full each month). Years back, Money Magazine did an article on this, and it helped people raise their FICO scores 40-50 points.

P.S. Merry Christmas to you also!

 

I've heard that a small balance is better than a zero balance, so paying some before the closing date but having a small balance when the statement closes may be useful.

 

I've seen it work the opposite to thus, who knows.

 

Only FICO knows for sure. And the same things sometimes seem to work the opposite for different people.

I sure don't know how FICO figures everything--just passing along what some have observed. Others have observed something the opposite. Maybe each person needs to test it herself.

I bet if we had 100 people with the same exact facts, they wouldn't all get the same score.

 

HSBC/Orchard treated me good. 3 months after my bankruptcy discharge in October 2004, they offered me and I accepted a $300 limit MC card, AF $49. Six months later they sent me one of their Visa cards - same terms. By now, December 2007, both have $1000 limits.
BUT - HSBC - through which Orchard is run, but have their own credit card approved me for one of their MCs in January of this year - $2500 limit, no annual fee - and in July upped the limit to $4500.

 

I should add that Orchard Bank was good to me as well, they helped me repair my credit. I never had to pay a late fee, over limit fee, etc. they were fair with the limit increases and better than the capital one card geared towards credit repair because they show the your limit. In hind sight, I think the Orchard Starter card is exactly that and you deal with predatory policies aimed at that tier of card holder so I should have canceled it as soon as I got my other card. However if you want to re-establish credit. Orchard is a great card, they will offer you an upgrade to thier other cards if you keep your record clean and are generous with the credit limit increases. I just would not keep a high balance on the card.

 

There's your answer, they are literate.