sub-prime? or prime low CL?

Discussion in 'Credit Talk' started by rhondak, Sep 12, 2003.

  1. rhondak

    rhondak Well-Known Member

    Was just discussing this with my finace.

    Only have a few more derogs to remove, but he doesn't have much good history either - hasn't been a big credit card user in the past.

    Anyway, my thinking was that it would be better to try to get a prime type card with a low CK than get a sub prime card.

    What do you guys think?
  2. RichGuy

    RichGuy Well-Known Member

    I absolutely agree with you.

    If the prime card has no annual fee, then you won't have to close it later or haggle about annual fees just to keep it open.

    Also, a small prime card is more likely to grow into a large prime card than a large subprime card is to magically transform itself into a large prime card.
    Like produces like.
  3. rhondak

    rhondak Well-Known Member

    OK, cool, thanks for the confirmation.

    Next question - let's say I talk to the bank about getting a bank type cc but they want it to be secured for 6 months or a year. Will that be as bad as a sub-prime card? or will they report is as secured? or if they do and they give you your security deposit back after a time and they refund your deposit, will the previously secured card start reporting as unsecured?
  4. RichGuy

    RichGuy Well-Known Member

    Subprime? or low CL Prime?

    Wow! That's an old question I haven't seen much lately...

    I've never had a secured card, but every post I can remember indicated that secured cards report exactly the same as unsecured cards.

    The only red flag would be the typically low credit limit on a secured card.
  5. DanS

    DanS Well-Known Member

    Re: Subprime? or low CL Prime?

    That is actually something one could "fix" by placing a lot of cash on deposit. Could also backfire - if you put $1k on deposit, use the card to report the high balance of $1k and pay it down, then pull money out of the account and your CL goes way below your highest balance.

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