Hello all, I am one year post bankruptcy and I was attempting to build my credit over the last year. I use my Orchard Bank card a lot, but I do make multiple payments a month and I have never been late on that card or any other account since the BK. Long story short, they are raising my rates from 14 percent to 27 percent as a business decsion, despite the fact that my score have risen over 75 points since first getting the card and the reasons they give me are " Limited satisfactory credit history" and "Length of time accounts have been established", both of which were factors when I first got the card. What is going on here? I am over 50% ofthe credit limit but do have have any other recourse than to pay it off and not use it anymore? Thanks Diane
I have one I have an orchard bank card, and thank goodness they have not done that with me. The only thing I could say is that you should give them a call and talk about the problem and try and get your rate lowered. I too have had the card for about a year. Funny thing. At first I had it maxed out and then I was making regular payments. I asked for a credit limit increase, they denied me cause they said I had held too high of a limit. So I paid the card off. Then after six months asked for a credit limit increase. They declined me cause they said the card was not in use. Now My strategy is too keep 30% utilization and make double the payment. Im gonna call them in 6 months and see what happens. Its weird too cause my other 2 cards have given me credit increases.
Rather than call, you might want to contact the executive offices. You might also want to get another card, start using it and not use theirs much. Then when they check your account again they'll see that you have another card that you're using. Hopefully the other card will have a higher limit and Orchard will try to match it, but don't bet on it. I've never had an Orchard card, I'm just telling you what works with some other companies.
I think their is something going on at Orchard. I do have a Capital One card with a $500 limit and that account has been reported for about 8 months. That too is over 50% ut but also have always paid more than the min and they have me at 0% and eventually to around 16% APR.
All of the sudden OB has been a little bit caucious. They approve you easily and then they seem to be throwing road blocks up. What gets me is the reason that they are raising it. My reports are better than they where when I was first approved. Thier really is no reason that is a good one. I mean it is a measely $300 credit limit.
Stop using it for a while, or only buy something like a tank of gas that you can pay off quickly. Show them that you are not going to play their games, but you want to keep the card active.
Economy may be slowing, Fed may be continuing to raise short term rates to fight "inflation" (which appears to be mostly energy related) even though high energy costs are a deflationary "tax", and the banks want to cut their risk. In a run to safety, the first one out gets the best deal, the laggards get stuck with the bad accounts. Just like a bank run. OCC's requirements that banks increase minimum payments also indicates a concern that some consumers may have taken on too much debt. Orchard has traditionally had a lot of subprime accounts, so they might have more incentive to reduce risk than some other banks.
I just got a letter in the mail stating my rate was going up from 14% to 27% as of Sept 2006. I have never been late with them either, make well over the minimum payment and am not over the limit. My credit has improved dramatically in the 7 months I've had the account. I have had about 6 things removed from my CRA's and my score has increased by about 45 points. I think it's a scam what they are doing-they approve you with horrible credit, as you build up your credit they hit you with this horribly high rate. It's deception. I agree....just use the card for like $5 and pay it off. Don't let them run up that kind of interest on you.
First Premier advertizes 9.9% fixed rate. + $6. monthly + $48 annual After the fees are paid, it might be a better deal than the Orchard. I would use the Orchard as a tool to get a better card, then quit using it.
I thought I'd post here coz I'm having trouble getting Orchard's CC selector to offer me a proper credit card. They only offer the secured card to me. My scores are around 530-570 from three bureaus. Looks like Orchard's toughening up their criteria. I wouldn't mind getting higher APR because I pay the balance in full every month. Do you have any other recommendations?
