A Good Sub-Prime Bank

With all the stories about how credit card companies are lowering credit limits and raising rates, we thought it would be refreshing to talk about a credit card company doing the right thing for their customers. We looked to the Credit Karma Community for bright spots in a dim market.

Low credit score borrowers know all too well that most sub-prime products are costly with high APRs and riddled with every imaginable fee possible. In one sub-prime credit card comparison, we showed how one bank was charging $265 in up-front fees for a credit card with a $300 credit limit. At the same time, that same card had an additional $230 in annual fees, did I mention the APR for the card is 19.92%. With products like these, we wonder how any consumer can improve their score without paying an exorbitant penalty.

That is where Orchard Bank steps in. Serving the same sub-prime market, Orchard Bank has developed a sub-prime secured credit card that is actually in our opinion good for consumers. In stark contrast to the credit card above, Orchard Bank provides a secured card with 7.9% APR, a $35 annual fee (waived in year one), and no processing fee.

Our members and other consumers seem to have nothing but praise for the Orchard Bank card, their credit limit increase, and their general approach to helping consumers improve their credit. Comments in our Orchard Bank review range from stories of good customer service to a credit line increase program designed to help consumers move off the secured credit card.

• “…this card is so great at rebuilding credit that Chase recommended it to me. [They] said to start with this card before getting their card.”
• “Orchard Bank is probably the best place to start building credit. They helped me. I started with a secured card with a $200 deposit and a $35 annual fee… After about a year, their parent company, HSBC sent me a pre-approval for an unsecured card.”
• “I’ve been with Orchard for several years now. They have been good to me and stuck with me even through some financial challenges.”

Other sites seem to suggest the same.

To be fair, some members do complain about the quality of the customer service which is out sourced to India, but the complaints are about the communication not the service. Also, we have seen a few reviews about a steadfast over limit fee they apply to their customers.

In general, we don’t normally promote a particular bank. But with all the bad news about how banks are abusing their customers, we thought about it would be refreshing to hear about a bank who is doing the right thing for their consumers. Let us know if you have had similar experiences with your credit card providers.

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