Prime & Subprime Cards...

Discussion in 'Credit Talk' started by Larry, Aug 28, 2000.

  1. Larry

    Larry Guest

    What is a prime/subprime card?... any info would be greatly appreciated...
  2. Jim

    Jim Well-Known Member

    RE: Prime & Subprime Cards

    Prime Cards = Good Credit, Good Rates, Choices, Rewards, High Credit Lines, Many Reputable Banks, Barganing Power......

    Sub-Prime Cards = Bad Credit, High Rates, Few if any choices, No Rewards, Extremely Low Credit Lines, Few Reputable Banks, Many Crooked Banks, No Barganing Power......

    Definatley Choose the Prime !
  3. RichGuy

    RichGuy Guest

    RE: Prime & Subprime Cards

    We could use an operational definition, namely that a subprime card is a card that someone could still obtain even with a poor credit record. A prime card is one that only someone with a good credit record could obtain.

    While there are no exact boundaries between the two types, and some people such as me have cards from both categories, there are certain cards that are definitely in one group or the other. Look at these characteristics to evaluate any particular card:

    High or low interest rate
    High or low credit limit
    Arbitration or legal rights
    High annual fee or none
    Application and monthly fees
    (sure sign of a subprime card)
    Special Balance Transfer Rates
    (offered only with prime cards)
    Delays in crediting monthly payments
    (another sure sign of subprime status)
    Interest from date of purchase
    or grace period for purchases.
    Surprise increases in interest rates
    or long-term stability in interest rates.

    Would anyone care to add to this list?
  4. CardReport

    CardReport Guest

    RE: Prime & Subprime Cards

    I would also point out that, while some banks specialize in one or the other (First USA=prime vs. Cross-Country=sub-prime), other banks have both types of products.

    Providian used to be very sub-prime focused, but then introduced Aria for the prime segment, while NextCard started out as strictly prime, but just expanded with a couple of sub-prime versions. So the wide variation in terms, fees, interest, etc. can be present even among the offerings of the same bank, with an effort to match the product to the particular customer.

    CardReport.Com - Credit Tools, News, And Reference
  5. RichGuy

    RichGuy Well-Known Member

    RE: Prime & Subprime Cards

    Things that go bump in the night...
  6. Sheepshead

    Sheepshead Well-Known Member

    Welcome. If you want to share some specifics (FICO if you know it, credit history, etc.) without posting personal information we can help some more if you're trying to make a card decision.
  7. Brad J

    Brad J Well-Known Member

    I think what some of you are describing is the so-called "super-prime" cards, which usually have the following atributes:

    Credit lines starting at 8K and over
    Air/dining/cash/retail rewards card
    single-digit APR's
    0% BT offers from time to time

    The point is, there is a difference between prime and super-prime.

    A good example is Capital One moving upstream and aggressively marketing it's Miles One and No Hassle Cards.
  8. willgator

    willgator Well-Known Member

    Re: Re: Prime & Subprime Cards...

    WHAT capitol one is sub prime right. super prime what?????????????????
  9. RichGuy

    RichGuy Well-Known Member

    Another point is, there's a difference between subprime and sub-subprime cards.
  10. Sheepshead

    Sheepshead Well-Known Member

    OK, class. Pay attention. We have:

    and sub-sub prime

    In the back...Larry...any questions?
  11. RichGuy

    RichGuy Well-Known Member

    I would put superprime above prime, not below it, so as not to mislead the class.
  12. Sheepshead

    Sheepshead Well-Known Member

    Re: Re: Prime & Subprime Cards...

    I should pay more attention rather than getting sucked into answering a post from years ago. Yes, you got me.

    Now Larry will be getting an email that people are answering his question.

    Class dismissed.
  13. willgator

    willgator Well-Known Member

    Re: Re: Prime & Subprime Cards...

    short and sweet


    DID i GET IT AM I RIGHT IS THAT IT///////////////////// I sure hope so cause I'm all confused please hold my hand.
  14. daveberk

    daveberk Well-Known Member

    Re: Re: Prime & Subprime Cards...

    I posted on this subject a couple of years ago:

    The following 18 characteristics differentiate prime form subprime cards. No particular one is determinative and no card is likely possess all of the features listed as prime or subprime.

    1. Prime: You must have decent but not necessarily perfect credit to get the card.

    Subprime: The card is marketed to people building or rebuilding credit.

    2. Prime: The APR is moderate to low (15% or below) except for rewards cards.

    Subprime: The APR is high--18+.

    3. Prime: The card offers rewards.

    Subprime: ha-ha

    4. Prime: The card has no annual fee (except rewards cards).

    Subprime: Annual fee, participation fee, application fee, expedite processing fee, fee calculated on the average of the fees, after the fees fee, etc.

    5. Prime: The card offers teaser rates.

    Subprime: Not offered.

    6. Prime: The card offers platinum or gold benefits.

    Subprime: No benefits.

    7. Prime: The cc company has 24/7 customer service at an 800 number and if you're overseas, it's ok to call collect. The call is picked up quickly and the rep. knows what he/she is talking about. When you get off the phone, you are confident that whatever action the rep. promised to take will be taken.

    Subprime: You pay for the call at daytime rates and since you forgot they're not in your time zone, you hear the recording that they are closed or you wait 20 minutes and then have a very unsatisfactory conversation with a Neanderthal who says he/she can't help you and there is no supervisor willing or available to help either. Any promises made to you are not binding because later when you call to complain, you can't prove what was said. . . so there.

    8. Prime: If the card is lost or stolen, a replacement gets to you within 48 hours.

    Subprime: If the card is lost or stolen, you get a new one in 2-3 weeks. The replacement fee will be charged to your account, of course.

    9. Prime: The credit limit is high (5K or more).

    Subprime: The credit limit is low ($200-$1K) and will remain that way for a very long time.

    10. Prime: The account comes with access checks or balance transfer checks.

    Subprime: "We don't do that".

    11. Prime: The card comes with offers for low balance transfer rates months or years after the account has been established.

    Subprime: Nope.

    12. Prime: Credit line increases are substantial (20-30% or more of the credit line each time).

    Subprime: Credit line increases are rare and you have to ask for them. Expect 100-200 increases. You may be charged for them.

    13. Prime: The card has concierge service.

    Subprime: What's that?

    14. Prime: The card has no preset spending limit (e.g., Amex green and gold, Visa Signature, World Mastercard).

    Subprime: Spending limited to cigarettes, gas and beer or other items of equivalent value charged in moderation.

    15. Prime: The card has a grace period for purchases.

    Subprime: You are charged interest from the date of each charge even if you pay in full on the next statement.

    16. Prime: Cash advance fees range from 0-3%.

    Subprime: Cash advance fee range from 4-5%.

    17. Prime: The card is unsecured.

    Subprime: The card is partially or totally secured.

    18. Prime: When calling customer service, you are treated with courtesy and respect.

    Subprime: When calling customer service, you are treated like dog shit.
  15. RichGuy

    RichGuy Well-Known Member

    Very good, Dave. I always find that type of list interesting.

    I might add that enormous fees are basically a way of securing a subprime card. They keep you from spending any more than you pay the bank. And it really is in a separate account, only it's their account.
  16. Sheepshead

    Sheepshead Well-Known Member

    Mr.'re a piece of work.
  17. Brad J

    Brad J Well-Known Member

    Well done. Not suprising that so little has changed in 2 years.

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