Can anyone tell me what the differences are between prime and sub-prime cards? I here these words used quite frequently in the credit world but I really do not understand them. I have an Amex Blue, Citibank Platinum Select and in a day or so in the mail, I will have a Discover Platinum. Are these cards prime or sub-prime or a combination of both? Any input would be greatly appreciated.
Re: Prime VS Sub-prime Differe The cards that you have or getting are considered prime. With prime cards you get a lower starting APR, higher starting cl, no annual and other benefits. Sub-Prime usually have lower cl, secured, processing fees, higher starting APR, high annual and no or little benefits. Best regards, Sam
Re: Prime VS Sub-prime Differe In this case the terms "prime" and "sub-prime" do NOT refer to the prime interest rate!
Re: Prime VS Sub-prime Differe Is the Houshold Bank Gold Card sub-prime? I think it is listed on this site as subprime, but there are no fees at all and there's a 3.9% intro rate.
Re: Prime VS Sub-prime Differe I think Household is trying to pass gold card offer as a prime product. I tend to disagree. I received an offer for this product, but the go to rate was 18.99 with a 2-cycle billing method and a minimum finance charge of $2.00. Most banks minimum finance charge is 0 to $.50. I would say stay away. This screams subprime with a slick disguise. JMO :-0
Re: Prime VS Sub-prime Differe I think as time marchs on the difference between prime and sub-prime will be very little. I mean in terms of the APR and the billing method which is the long term profit makers for the cc. In recent news more prime cc companies will try to force a higher APR on established customers. Some of the methods used are a higher APR which can be triggered if the client registers one late payment. Another method is where your cc company will pull your credit report for a review and if they find one late payment anywhere your APR can go up. Best regards, Sam
