"Denied"
Orchard Bank Classic MasterCards Review
Written by: borats1mom on 2011-06-26
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borats1mom's review: 
Transunion is my highest score at 640 and Experian is my lowest at 614. On derogatory record which is an old medical bill from about two years ago that I refuse to pay(out of principal). I gave my account info for the 19.00 and went through the entire process(which I was a bit weary about) only to be denied. I have perfect payment history aside from that one derogatory medical bill. My current creditors will not increase my limits, but I want a larger amount of available credit in my credit report because I am trying to build my credit up to so that I am able to purchase a home within a year or so. I was very disappointed after giving out my bank account info that I was denied. It is not because the funds were not available for the 19.00 either, because my bank account way exceeds that.
Transunion is my highest score at 640 and Experian is my lowest at 614. On derogatory record which is an old medical bill from about two years ago that I refuse to pay(out of principal). I gave my account info for the 19.00 and went through the entire process(which I was a bit weary about) only to be denied. I have perfect payment history aside from that one derogatory medical bill. My current creditors will not increase my limits, but I want a larger amount of available credit in my credit report because I am trying to build my credit up to so that I am able to purchase a home within a year or so. I was very disappointed after giving out my bank account info that I was denied. It is not because the funds were not available for the 19.00 either, because my bank account way exceeds that.
8 Comments
Comment 1 by jayrizzo
Re: Denied 
on 2011-06-27
At this point, be VERY THANKFUL that you did not join HSBC (Orchard). They are currently going through some financial issues and trying to sell off their U.S. Credit Card division or close it down if no other bank buys it -- so you may have just saved $19. Also, you would NOT have received a large credit limit from Orchard -- that's not the process for rebuilder cards, they start you off low.
I don't know who your current creditors are that won't increase your limits, but I have a good idea that these are also rebuilder cards. If you do not want to go the secured route via your local credit union, then just keep using and paying on what you currently have -- it's usage, not volume that counts. Pay before your Statement End date (not due date) and keep utilization low -- you pretty much know the routine. Good Luck!
on 2011-06-27 At this point, be VERY THANKFUL that you did not join HSBC (Orchard). They are currently going through some financial issues and trying to sell off their U.S. Credit Card division or close it down if no other bank buys it -- so you may have just saved $19. Also, you would NOT have received a large credit limit from Orchard -- that's not the process for rebuilder cards, they start you off low.I don't know who your current creditors are that won't increase your limits, but I have a good idea that these are also rebuilder cards. If you do not want to go the secured route via your local credit union, then just keep using and paying on what you currently have -- it's usage, not volume that counts. Pay before your Statement End date (not due date) and keep utilization low -- you pretty much know the routine. Good Luck!
Comment 2 by majtykamadness
Re: Denied on 2011-06-27
You are probably better off denied. Those cards rape you in fees and the APR's are insane. Depending on how much the medical bill is, I would swallow my pride and pay it if your real serious about getting a house. It will look better for you when you apply and believe me anything you can do to improve your rate on your mortgage you won't regret. Your scores are just about there. Experian will need to be over 620 to get a mortgage i believe. I would try a secured card from a bank or credit union to get started instead of being ripped off by any bank that wants to charge you bogus fees. They are only looking out for themselves. NOT you.
GL and stay focused on your goals. Improving your score takes time and patience.
on 2011-06-27 You are probably better off denied. Those cards rape you in fees and the APR's are insane. Depending on how much the medical bill is, I would swallow my pride and pay it if your real serious about getting a house. It will look better for you when you apply and believe me anything you can do to improve your rate on your mortgage you won't regret. Your scores are just about there. Experian will need to be over 620 to get a mortgage i believe. I would try a secured card from a bank or credit union to get started instead of being ripped off by any bank that wants to charge you bogus fees. They are only looking out for themselves. NOT you.GL and stay focused on your goals. Improving your score takes time and patience.
Comment 3 by kdb030609
Re: Denied on 2011-06-27
I agree with MajtykaMadness ! They probably did you a favor. However you're probably going to have to do something about the medical bill. That's probably holding you back! Good luck!
on 2011-06-27 I agree with MajtykaMadness ! They probably did you a favor. However you're probably going to have to do something about the medical bill. That's probably holding you back! Good luck!
Comment 4 by borats1mom
Re: Denied on 2011-06-28
Thank you all, but now the 19.00 is out of my account... So I think I'll be receiving a card from them in the mail. Maybe, since it will be such a low limit, I'll use it as a gas card. I only have actual credit cards with Capital One(two) because no one else approves me :( and I'm not sure why because I monitor my credit reports and like I said, the only negative mark I have is the medical bill. Which is actually in dispute right now(I did not file a dispute and am confused as to how it is being disputed since I didn't initiate it..) The reason I have two cards with Capital One is because (in case of emergencies) I do need to be able to utilize more than 500.00, so a few months back, when they would not approve an increase, I applied for a second card and got it. I'm not sure why they will approve a second card, but not a limit increase, but that's what happened. I do have a few of those online store cards, because they kept sending me catalogs with credit offers and when this all happened with capital one, I figured, "Hey, why not. It will give me more credit on my credit reports. And that's exactly what it did. It has been increasing my score, but very slowly and the store cards are not as practical as a regular credit card. Also, if I want to make a very large purchase I can not do that on credit because I have two cards that equal out to 1000.00 but they're split. Anything over 500, I have to pay up front. If I could just have one card with a 1000.00 limit, rather than two with a 500.00 limit, I would be very happy.
This was long... Sorry. Any advice on the situation would be appreciated. (By the way, I am only 20 so I think the fact that I only have two years of credit history affects everything in a big way too...)
on 2011-06-28 Thank you all, but now the 19.00 is out of my account... So I think I'll be receiving a card from them in the mail. Maybe, since it will be such a low limit, I'll use it as a gas card. I only have actual credit cards with Capital One(two) because no one else approves me :( and I'm not sure why because I monitor my credit reports and like I said, the only negative mark I have is the medical bill. Which is actually in dispute right now(I did not file a dispute and am confused as to how it is being disputed since I didn't initiate it..) The reason I have two cards with Capital One is because (in case of emergencies) I do need to be able to utilize more than 500.00, so a few months back, when they would not approve an increase, I applied for a second card and got it. I'm not sure why they will approve a second card, but not a limit increase, but that's what happened. I do have a few of those online store cards, because they kept sending me catalogs with credit offers and when this all happened with capital one, I figured, "Hey, why not. It will give me more credit on my credit reports. And that's exactly what it did. It has been increasing my score, but very slowly and the store cards are not as practical as a regular credit card. Also, if I want to make a very large purchase I can not do that on credit because I have two cards that equal out to 1000.00 but they're split. Anything over 500, I have to pay up front. If I could just have one card with a 1000.00 limit, rather than two with a 500.00 limit, I would be very happy.This was long... Sorry. Any advice on the situation would be appreciated. (By the way, I am only 20 so I think the fact that I only have two years of credit history affects everything in a big way too...)
Comment 5 by jayrizzo
Re: Denied on 2011-06-28
Ok, here's a little bit of Tough Love for ya! Don't think for a minute that Capital One is doing you any favors by giving you 2 cards -- they're making money off you with 2 Annual Fees. And if you carry balances, 2 Interest Payments. And finally, Forbid if you default on them... well, we don't want to think negative.
I think you're going about this all wrong. You don't build credit by acquiring more and More and MORE credit cards... you just manage the ones that you have and over time (yes, it's time consuming -- not a rush job), your score will increase and you will qualify for better cards with more incentives -- not "rebuilder" cards which is what you currently have.
Finally, more than likely, if you were denied a card from HSBC Orchard, they WILL refund your $19. It may take a month or two, but you will get your money back.
Oops! I forgot one bit of good advice... DO NOT apply for so much credit too quickly. The normal is 1 or 2 cards per year and spread those out about 1 every 5 or 6 months. You will set off Red Flags with current creditors and it makes them very nervous to see you agressively seeking credit -- it can do more damage than good.
on 2011-06-28 Ok, here's a little bit of Tough Love for ya! Don't think for a minute that Capital One is doing you any favors by giving you 2 cards -- they're making money off you with 2 Annual Fees. And if you carry balances, 2 Interest Payments. And finally, Forbid if you default on them... well, we don't want to think negative.I think you're going about this all wrong. You don't build credit by acquiring more and More and MORE credit cards... you just manage the ones that you have and over time (yes, it's time consuming -- not a rush job), your score will increase and you will qualify for better cards with more incentives -- not "rebuilder" cards which is what you currently have.
Finally, more than likely, if you were denied a card from HSBC Orchard, they WILL refund your $19. It may take a month or two, but you will get your money back.
Oops! I forgot one bit of good advice... DO NOT apply for so much credit too quickly. The normal is 1 or 2 cards per year and spread those out about 1 every 5 or 6 months. You will set off Red Flags with current creditors and it makes them very nervous to see you agressively seeking credit -- it can do more damage than good.
Comment 6 by majtykamadness
Re: Denied on 2011-06-29
Excellent advise JayRizzo.
The fact that you are only 20 and fairly new to credit is defiantly preventing you from large CLI because you have no proven credit history. A minimum of 5 years is best. Like Rizzo said, don't apply for too much credit or it will just hurt you more then help you. Most 18 - 22 year old's get lots of cards and never pay them. So you have to prove to them you are responsible and you will be rewarded. BTW, Capital One is very stingy and rarely even gives the best scores CLI. Keep positive and be patient. The more you rush and keep applying the farther you will get behind.
I still think a secured loan through a credit union would help you though only because it gives you a better mix of credit and the rate would be lower then a CC. Just my opinion.
GL
on 2011-06-29 Excellent advise JayRizzo.The fact that you are only 20 and fairly new to credit is defiantly preventing you from large CLI because you have no proven credit history. A minimum of 5 years is best. Like Rizzo said, don't apply for too much credit or it will just hurt you more then help you. Most 18 - 22 year old's get lots of cards and never pay them. So you have to prove to them you are responsible and you will be rewarded. BTW, Capital One is very stingy and rarely even gives the best scores CLI. Keep positive and be patient. The more you rush and keep applying the farther you will get behind.
I still think a secured loan through a credit union would help you though only because it gives you a better mix of credit and the rate would be lower then a CC. Just my opinion.
GL
Comment 7 by borats1mom
Re: Denied on 2011-06-29
Well, I have a loan from a credit union, but it's an unsecured personal loan. I have the five months or so paid off. I didn't want to pay it all at once because I wanted it to at least be on my report for a little while to maybe build some history. I've got it paid way in advance though and I think I'll keep doing that every few months or so until it's paid. Unless I'm going about that all wrong.... I don't know if it's better to just pay it off asap (the rate is like 15% or something...) or if it's better to spread it out like I've been doing.. Or just pay a small amount extra each month...
on 2011-06-29 Well, I have a loan from a credit union, but it's an unsecured personal loan. I have the five months or so paid off. I didn't want to pay it all at once because I wanted it to at least be on my report for a little while to maybe build some history. I've got it paid way in advance though and I think I'll keep doing that every few months or so until it's paid. Unless I'm going about that all wrong.... I don't know if it's better to just pay it off asap (the rate is like 15% or something...) or if it's better to spread it out like I've been doing.. Or just pay a small amount extra each month...
Comment 8 by wanderer
Re: Denied on 2011-06-29
HSBC's Orchard Bank is a great starter card. They generally do not grow with you but after a year or two you are ready to move up to pirme so it really doesn't matter. As to Capital One, they are known on the starter cards (small limtis) to issue several cards but not move on the CL... it is said (a couple of years ago) they use small limits with several cards as a way to control the amount of credit you have with them... anotherwords you can't do much with $300 to $500 dollar CL's and by setting you up with several small CL's they limit their liability against nonrepayment. As one who is new to credit, patience and consider the comments made by other posters here as they gave insight and background for your use.
on 2011-06-29 HSBC's Orchard Bank is a great starter card. They generally do not grow with you but after a year or two you are ready to move up to pirme so it really doesn't matter. As to Capital One, they are known on the starter cards (small limtis) to issue several cards but not move on the CL... it is said (a couple of years ago) they use small limits with several cards as a way to control the amount of credit you have with them... anotherwords you can't do much with $300 to $500 dollar CL's and by setting you up with several small CL's they limit their liability against nonrepayment. As one who is new to credit, patience and consider the comments made by other posters here as they gave insight and background for your use.
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Disclaimer: This content is not provided by Capital One Bank (USA), N.A.. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Capital One Bank (USA), N.A.. Review content is powered by Finance Globe.
