What's the different between all the credit cards? Secured ( I have one) but whats the diff between sub and sub prime cards? Also can a secured card ever be upgraded to a prime? Thanks me
A sub prime card is a credit card from an issuer that targets business from people with bad credit and low scores. Examples of sub prime issuers are FCNB, First Premier, Sterling Bank, Orchard Bank, Capital One. Prime cards are credit cards from issuers that generally have tighter underwriting requirements and solicit business from people with good credit. Examples of a prime card issuer woud be MBNA, Citibank, American Express, etc. As far as converting a subprime to a prime, I have heard of peole on this board with Captial One secured cards that after a year or so of good history have had their accounts unsecured and moved into 'prime-like' terms (low rates, better perks, etc). IMHO, Capital One is a good company to start with if you have bad credit. I started with them and they have always been very accomodating for me. The only bad thing about Capital One is that they do not report your limit to the CRAs so if you're like me and keep a low balance (and pay it off each month) it really screws up your debt ratios which impact your scores significantly (at least they do mine). One month I will have a 620 score, the next month I will have 550 because it looks like my cap1 cards are maxed out when they really aren't.
Matt Great INfo!! Thanks! After I keep cap one sec for a while, what should I move to next? Thanks me
Well I'm not too sure about that one because I haven't gotten to the point yet where I would qualify for a prime card anyway -- I have a loooooooong ways to go... But, after I had my Cap1 secured card for about a year, I applied for an unsecured. Of course, they denied but counteroffered with a $500cl/$49 deposit card, which I accepted. I then called them to complain and they tripled the cl on my existing card. So, we both won in a way. The only thing I suggest though is maxing it out (of course, don't go overlimit or you'll get socked with an OL fee) and returning or paying off the balance. That way the "high credit" Cap1 on your CRAs will more closely reflect your actual credit line and your debt ratios won't be off kilter. I just wish that Cap1 would make life simpler and just report the CLs, but based on what people have said on the board, they feel strongly against that for some bizarre reason.
