What apr should a prime card have to make it a prime card? I am sure we all agree, a prime card should have no annual fee, at least a 25 day grace period and a fairly large limit (say $3K or more). Maybe $3K is a little low. Some people may say $5K. Juniper is considered a prime card. Among their offerings is a 15.9% apr. My Capital One gold card is now 17.9% Nobody in their right mind would brag about a capital One card but it does seem like the apr. difference is awfully minimal in some cases. My credit union visa cards are 13.9%. At my credit unions, you either get the card with the 13.9% or you don't get the card. No negotiation is permitted. If my Capital One gold card reduces apr. from 17.9 to 15.9% is it now considered prime? Could it be that a subprime card is like pornography. As one Supreme court justice said - "I can't define it but I know when I see it that it's pornographic". (substitute the word subprime for pornographic) It's just a thought.
Jim, Good question; I was wondering the same thing. What exactly is the dividing line between sub prime and prime? Even some really good cards,like Amex platinum, come with an annual fee so I'm not sure that's always part of the criteria. And I'll take a card with a thousand dollar limit, with a decent interest rate, over one of those high-interest, higher-limit sub primers, any day. Yes, limits are important but I think the crucial thing for me is the interest rate. I definitely expect something that's reasonable. You mentioned Cap One. Really, they're not all that bad, especially when compared to others, like CCB or even 1st Premier. I just wish they were a bit more lenient with the increases. Their customer service is pretty commendable but I just can't talk any of the reps into upping my limits. As long as I'm being treated well, and feel valued as a customer, I'm not going to worry much about the credit card company. Of course, the better my credit gets, the stronger position I'll be in. If I don't like the way a particular company is treating me, I'll go elsewhere. For sure, the way I knew I was in sub prime was when there were few other places I could go. I'm sure relieved to know that my options are starting to expand. Donna
Thanks for your view. I temporarily forgot that until 1995, I used to pay the annual fee for an AMEX gold card. It was a handsome card to have but I only ever used it to take my ex-wife out to dinner. When I cancelled it, AMEX offered to waive the annual fee for one year. In days gone by my AMEX card was the only card I paid an annual fee for and I used it the least. Ah prestige!! LOL
Call Capital One and ask for their retention department (it's the dept you talk to if you've threatened to close your acct). Don't bother threatening to close it, just ask for them (I did it today) I got an increase 6 weeks after a previous increase and they lowered the rate on the other card. Worth a try. oh, the first CSR asked why I wanted retention and I was honest: they have more ability to up my credit limit... so I'm told... the original rep agreed and sent me to them! Good luck
I liked your term "Tweene I think that accurately reflects where some of us are. "Tween" subprime and prime.
Prime card: Looks good (hint: Platinum) Company has a known reputation for superb customer service (ie AMEX) Great credit line ($5000 comes to mind). Account Features: Buyers protection(added warranty), $0 fraud protection. Interest rate: the national average is like 16% nowadays, prime is better. i spose. Its pretty safe bet that if they won't give you a card because: 1. Your have too much credit/balances. 2. You have any derogs. 3. You have insufficient established credit. That its a PRIME card. To someone who has had credit problems, a PRIME card is "something i couldn't get for XX years" to somewith with normal credit, it might be a 9.9% AMEX BLUE or other great card. Its all in the eyes of the beholder.
RE: I liked your term "Tw Can't take credit... saw it in an article that recommended Prov/Aria/Cap1/Aspire (yuck)/Merrick Bank (yuck again). I like the term too
Good post, sam. I think you summed up the differences pretty well. Right now, I'm still in limbo but I'm more than halfway out of the basement. I'm probably 3/4 of my way up the steps. And you're right - An offer that would look good to me right now probably wouldn't be acceptable to someone else. Donna
Ok, How do I get there? Great Explanation! Ok, so if subprime is: Cap1/Prov/Aria etc and Prime is Citibank/Amex/Chase is there anyone in between? Bank/offers for someone going from Subprime to Prime? Eg: does Chase have a secured card that will go to unsecures? Is MBNA in the middle? I can eventally (12-24 mos) get a Prov Platinum but I'll still want the feeling that I've "recovered" with some Prime credit... suggestions? I just got a Nextcard w/0 Annual fee, 16.9%, grace period, but 750 in credit. Work that up to Prime?
I agree. The definition deserves more attention. I'd re-think associating a card that carries an annual fee with the term "sub-prime". Here's why: 1. Even if your FICO scores 900 and you make $1M a year, you won't get a decent air mileage card w/o paying an annual fee. 2. The most prestigious charge cards (or semi-charge cards) carry an annual fee: Amex Platinum, Visa Signature, etc. Also, having only 2 categories (either prime or sub-prime) is not enough to classify a given card. Even a lame $500 Cap1 card is so much better than a Net 1st or 1st Premier. Yet if we used common terminology, we'd call both sub-prime. Some suggested the term "sub sub-prime" to describe the latter. They'll have to come up with a catchier term... Saar
RE: Ok, How do I get there? Well I have the Aria platinum card, 5K limit no annual fee and a fixed rate of 7.9%, that to me is a prime card mom
It Ain't Easy Marie, Climbing out of the basement sure isn't easy. Probably, the three most ingredients you'll need are time, patience and hard work. The more time that passes, the less impact derogatory remarks will have on your credit scores and, as you know, eventually, they will come off your reports completely. Patience...This one is hard. But while you're waiting for time to pass, you've gotta be patient, struggling along in the sub prime world. You've done the right thing by getting cards from Providian and Cap One. They will help in the rebuilding process. Hard work...This too is important. Get your credit reports, if you haven't already; look them over and start disputing some of the negative items. hehehe The patience I mentioned earlier applies here, too. The bureaus can be tough but you have to remain resolute and tenacious. Time for me to leave work. I hope this helps a little. Believe me, I've had my own credit struggles and I'm still digging my way out. Fortunately, I'm starting to see daylight. Donna
I once had a First Premier subprime card whose interest rate was 13.4 percent. At the same time, I had a Wells Fargo "prime" card whose rate was 18.9 percent. Bottom line: Wells had a better name, but First Premier was less costly on months I carried a balance. If I had to do it all over again today, I'd keep open the First Premier card for its lengthy history, despite the meager $400 line and vanity concerns. Why? Because a card with a low limit, coupled with discipline, is a safeguard against overspending. Besides, closing down lines as a theoretical means of increasing the FICO score is overrated. While it is true I enjoy the prestige of holding major prime cards with high limits, it is equally true that such cards encourage overspending. A friend of mine who'd worked hard to rebuild "A" credit for 10 years declared BK last week. High-limit cards got the best of him -- again.
http://board.creditnet.com/read.php3?num=1&id=19090&thread=18896 Prime (prim) adj. 1. First in quality, importance, rank, or time. Prime Rate: The Prime Rate is the interest rate charged by banks to their most *creditworthy* customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The rates reported below are based upon the prime rates on the first day of each respective month. Prime rate as of 5/17/2000 is 9.50% (It might be different now since this post is from November 00) So, Citibank is considered by most as a "Prime" bank (according to the definition above). As far as their interest rates are concerned, does anyone have a card from Citibank w/ a 9.50% *Prime* interest rate?? So, I am under the impression that you can be a "Prime" bank but not have *Prime* rates. What I find interesting is that people on this board consider Capital One as a "Sub Prime" bank but I noticed that their Platinum card has an interest rate of 9.9% fixed????? That's seems to be *prime* to me! All the rest of their cards APRs are highway robbery! I guess what it boils down to is what's most important to you: Your interest rate or the Prestige of your Bank. No one is going to care if you have a Prividian Platinum w/ a 9.9% interest rate because all they know is the name *Providian* and the stigma that surrounds the name, hence have people automatically assume that your credit is finished! Pull out the Am/Ex Optima Platinum card card w/ a 17.49% interest rate and people will assume that you have AAA credit! But what about that 17.49% interest rate though? Sure people have had it negotiated down but still...miss one payment with them and your APR just became 23.99% (the same as Providian!). Just a thought....
RE: Catchier Term? Catchier term for First Premier, FNB/Marin, and other cards that impose multiple fees but offer almost no credit? For the Cards: Clunkers? Scarlet Letters? Weekend Passes? Pawnshop Specials? For the Banks: Halfway Houses? Salvage Yards? Nosebleed Section? Soup Kitchens? The possibilities are endless!
