What is a Premium Bank Credit Card?
Author: phantomega1
Posted: Thu Jul 13, 2006 1:01 am
Post subject: What is considered a "Premium Bankcard"?
I monitor my credit report like a maniac, and recently when I was checking True Credit for their suggestions about what I can improve on my report. Here is one that just showed up recently:
There are not enough premium bankcard accounts on your credit report. [TransUnion] A healthy balance of credit and loan accounts is key to achieving a high credit score. It is important to build a record of responsible credit use over time with different types of accounts. Consider opening a new account to strengthen your credit report and improve your score.
So what is a premium bankcard? I think I read somewhere on the forum that the Visa Signature cards are considered premium. What about the AMEX Blue Cash card that I just opened? It's not on my report yet, but is American Express considered premium any more, or has their rep been tarnished a little since they seem to be handing out cards like candy? What about Discover? I hear they require a really high FICO score, like almost 800. I was denied by them in August of 2004, should I try again?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: hdporter
Posted: Thu Jul 13, 2006 6:25 am
Post subject:
A premium card in this case means one that isn't issued by a sub-prime issuer -- one that targets lesser quality credits.
It doesn't mean an issuer that requires a very high credit score. (FWIW, Discover issues on as low as high 600's, through 700+ will put you in a stronger position for approval.)
It would be helpful if you listed all your open credit accounts to assess more strongly what might be advisable in your case. However, adding a couple of cards from someone like BofA, Citi, or Chase should be sufficient.
It would also be very helpful if you'd let us know what your score with TrueCredit is. Be advised, however, that TrueCredit scores are based upon a proprietary TransUnion model ("FAKO", in slang reference), and a FICO model that would be similar to what a credit card issuer would use in their evaluation. TrueCredit scores have been known to vary up to 50-100 points from a "true" FICO score. To get a firm idea of where you stand, you may wish to purchase the 3-in-1 product from myFICO. (check around creditboards.com for a discount code)
author: phantomega1
Posted: Thu Jul 13, 2006 10:16 am
Post subject:
As far as I know, I don't have any "subprime" lender credit cards. I thought I had pretty decent cards, and they are all fairly established. Here is an idea of what I have:
Chase platinum opened in 2002
BOA platinum opened in 2002
MBNA elite rewards opened 2001
I also have some store cards like Best Buy, Home Depot, JC Penney, etc.
I have never had any late payments or any other negative info on my credit report. True credit says my scores are
TU: 735 EX: 719 EQ: 722
Like I said, I just opened AMEX Blue Cash also, but it is not on my report yet. The only thing I had that could be considered Subprime was a Providian card back in 2001 that I cancelled in 2002, because the APR was too high.
Author: hdporter
Posted: Thu Jul 13, 2006 10:40 am
Post subject: What is a Premium Bank Credit Card?
Thanks for the info; it's helpful.
Ok. Once your scores climb into the 700's, the reasons that differentiate you from an 800 are going to have very modest nuances.
I wouldn't be surprised if most 750+ credits have more bank cards then you have (whether currently open or now closed). Certainly the banter around here would suggest that's true.
So, when they compare you against the 750+ group, you show up as light in credit cards. There's nothing about that which necessarily makes you a poorer credit. But the whole statistical model thing identifies common characteristics within a high credit performing group and may determine that if your characterists more closely reflect a poorer credit performing group (say, fewer cards), you should be rated accordingly -- using that characteristic as a predictor. Like it or not, that's the entire basis of the credit scoring thing.
So, you might simply add one or two new cards to your portfolio. I don't think a signature card is going to gain you anything more than any other prime bank card. Simply go for one with better terms.
That said, the simple act of opening a new account might hurt you more than help. Your history on existing accounts is relatively short. A new account will disproportionately shorten it further. The ding for that shortening might well be stronger than the positive benefit of showing another bank account.
Such are the vagaries of trying to boost your credit score.
Tell you what. Once you're in 720+ score turf, you're pretty much gonna rate the strongest terms when you go for credit. Frankly, I expect you have better things to do than fine tune your credit score given that.
As your accounts age your credit score will climb on its own. Keep your balances modest (all accounts ideally, no more than 20%-30%) of limits, and your score will benefit further. But on that count, many around here admirably reason "Screw another 10pts -- If it's to my economic advantage to take a card to 40%-50% on a promo rate (or higher), I'm going for it.
The point is to let your FICO score take a modest back seat to your credit needs. Bottom line, you're in very good shape. Tell the model to kiss off .
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: dascxs
Posted: Thu Jul 13, 2006 11:42 am
Post subject: What is a Premium Bank Credit Card?
My TU Fico is 765, and it STILL says that I should lower my revolving balances. I am at 7% utilization!! Of course, that 7% is my Amex which is PIF each month.
You could be 849 and it would still say you are lacking in something.
I still have a Cap1 with a low ($3000) limit from when I had "issues". It's 5 or 6 years old and pristine, but does that show up as sub-prime? It's not secured or anything like that. It's just a regular Platinum. Unfortunately it carries an annual fee, which gets waived when I call.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Thu Jul 13, 2006 1:01 am
Post subject: What is considered a "Premium Bankcard"?
I monitor my credit report like a maniac, and recently when I was checking True Credit for their suggestions about what I can improve on my report. Here is one that just showed up recently:
There are not enough premium bankcard accounts on your credit report. [TransUnion] A healthy balance of credit and loan accounts is key to achieving a high credit score. It is important to build a record of responsible credit use over time with different types of accounts. Consider opening a new account to strengthen your credit report and improve your score.
So what is a premium bankcard? I think I read somewhere on the forum that the Visa Signature cards are considered premium. What about the AMEX Blue Cash card that I just opened? It's not on my report yet, but is American Express considered premium any more, or has their rep been tarnished a little since they seem to be handing out cards like candy? What about Discover? I hear they require a really high FICO score, like almost 800. I was denied by them in August of 2004, should I try again?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: hdporter
Posted: Thu Jul 13, 2006 6:25 am
Post subject:
A premium card in this case means one that isn't issued by a sub-prime issuer -- one that targets lesser quality credits.
It doesn't mean an issuer that requires a very high credit score. (FWIW, Discover issues on as low as high 600's, through 700+ will put you in a stronger position for approval.)
It would be helpful if you listed all your open credit accounts to assess more strongly what might be advisable in your case. However, adding a couple of cards from someone like BofA, Citi, or Chase should be sufficient.
It would also be very helpful if you'd let us know what your score with TrueCredit is. Be advised, however, that TrueCredit scores are based upon a proprietary TransUnion model ("FAKO", in slang reference), and a FICO model that would be similar to what a credit card issuer would use in their evaluation. TrueCredit scores have been known to vary up to 50-100 points from a "true" FICO score. To get a firm idea of where you stand, you may wish to purchase the 3-in-1 product from myFICO. (check around creditboards.com for a discount code)
author: phantomega1
Posted: Thu Jul 13, 2006 10:16 am
Post subject:
As far as I know, I don't have any "subprime" lender credit cards. I thought I had pretty decent cards, and they are all fairly established. Here is an idea of what I have:
Chase platinum opened in 2002
BOA platinum opened in 2002
MBNA elite rewards opened 2001
I also have some store cards like Best Buy, Home Depot, JC Penney, etc.
I have never had any late payments or any other negative info on my credit report. True credit says my scores are
TU: 735 EX: 719 EQ: 722
Like I said, I just opened AMEX Blue Cash also, but it is not on my report yet. The only thing I had that could be considered Subprime was a Providian card back in 2001 that I cancelled in 2002, because the APR was too high.
Author: hdporter
Posted: Thu Jul 13, 2006 10:40 am
Post subject: What is a Premium Bank Credit Card?
Thanks for the info; it's helpful.
Ok. Once your scores climb into the 700's, the reasons that differentiate you from an 800 are going to have very modest nuances.
I wouldn't be surprised if most 750+ credits have more bank cards then you have (whether currently open or now closed). Certainly the banter around here would suggest that's true.
So, when they compare you against the 750+ group, you show up as light in credit cards. There's nothing about that which necessarily makes you a poorer credit. But the whole statistical model thing identifies common characteristics within a high credit performing group and may determine that if your characterists more closely reflect a poorer credit performing group (say, fewer cards), you should be rated accordingly -- using that characteristic as a predictor. Like it or not, that's the entire basis of the credit scoring thing.
So, you might simply add one or two new cards to your portfolio. I don't think a signature card is going to gain you anything more than any other prime bank card. Simply go for one with better terms.
That said, the simple act of opening a new account might hurt you more than help. Your history on existing accounts is relatively short. A new account will disproportionately shorten it further. The ding for that shortening might well be stronger than the positive benefit of showing another bank account.
Such are the vagaries of trying to boost your credit score.
Tell you what. Once you're in 720+ score turf, you're pretty much gonna rate the strongest terms when you go for credit. Frankly, I expect you have better things to do than fine tune your credit score given that.
As your accounts age your credit score will climb on its own. Keep your balances modest (all accounts ideally, no more than 20%-30%) of limits, and your score will benefit further. But on that count, many around here admirably reason "Screw another 10pts -- If it's to my economic advantage to take a card to 40%-50% on a promo rate (or higher), I'm going for it.
The point is to let your FICO score take a modest back seat to your credit needs. Bottom line, you're in very good shape. Tell the model to kiss off .
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: dascxs
Posted: Thu Jul 13, 2006 11:42 am
Post subject: What is a Premium Bank Credit Card?
My TU Fico is 765, and it STILL says that I should lower my revolving balances. I am at 7% utilization!! Of course, that 7% is my Amex which is PIF each month.
You could be 849 and it would still say you are lacking in something.
I still have a Cap1 with a low ($3000) limit from when I had "issues". It's 5 or 6 years old and pristine, but does that show up as sub-prime? It's not secured or anything like that. It's just a regular Platinum. Unfortunately it carries an annual fee, which gets waived when I call.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 12:28 PM
0 Comments:
Post a Comment
<< Home