Capital One buying HSBC/Orchard Bank..what it means

[jetsfan2010]

A friend of mine who works for Capital One recently told me that as of May 1st, Capital One had purchased the credit card dept of HSBC, which includes many cards that are popular for rebuilding credit i.e Orchard Bank.

Some looking to establish credit after a discharged BK may be limited to either Cap One or Orchard, but likely not both.

Just wanted to pass the info along

[Bell30656]

Wow! I have a Capital One MasterCard, HSBC Orchard Bank MasterCard and an HSBC Best Buy MasterCard. I wonder if they will try and consolidate them to one card.

[ValleYum]

Hmmm. That could limit rebuilding for many people.

I wonder if they will try and consolidate them to one card.

I wonder if HSBC will now give a CL increase of more than $100. LOL

[jetsfan2010]

Not sure but I had an old HSBC CC that was included in my 7 that discharged, and this pretty much confirms I wont attempt to get addtional credit from them(cap 1)

[DesdemonaB]

I got my letter on Monday – I wasn’t paying attention to this particular cc to cc purchase so I had no clue that HSBC sold its accounts.

Letter says last year HSBC announced plans to sell most of US CC accounts – Orchard Bank, Household Bank, Direct Merchants and several other brands – sale was completed 5.1.2012.

I will continue to use my Household Bank card till it expires – and payment addresses and online payments will remain at the HSBC website only. The letter addresses if I have a Cap1 and HSBC card can they or will they be combined or consolidated – the answer is no – not at this time.

The letter address credit reporting – the history and name of account will transfer to Cap1 and all future communications regarding the card will be co-branded Cap1 and HSBC till my card is replaced (when it expires).

I had no clue of the sale and the funny thing is on May 2 I was reviewing my CR and checking to see if I got a score increase from last month – I have had my HSBC since 10.11 and since I passed my 6 month mark I decided to ask on-line for a credit limit increase – I was approved for 400 in 10.11 – the on-line request asked how much I was planning to spend how much I would like to increase the limit. I asked for the limit to be increased to 750 – which is what my Cap1 is and HSBC increased the limit to 550 so I got a 150 increase that night.

I received a letter from Household Bank dated 5.3 regarding the increase – they increased the CL to 550 but they could not grant my requested of 750 for the following reason:

Account has received maximum credit line increase under current policy. Interesting.

[tobee43]

i don't know how they figure out how they increase you. i know that after about a year and a half and orchard never reported anything to any of the credit agencies i closed the account. they tried to tell me they report and they would increase my line. i said you don't report and why would i need you to increase a $300 line which i have 3k with cap one and barcleys i have over that both at 12.9% ( that one just got increased again the other day i have no clue why).

i also have a best buy i haven't used becaue it was one of the first companies that offered us a line right out of bk for over 1k each. we didn't get any letters?

[HHM]

It won't mean anything to the average consumer.

[tazunemono]

What if I have charge-offs with both? lol I am attempting to discharge $5,000+ from Cap1 and $1,500 from Orchard, so I guess I'm blacklisted now

[ValleYum]

What if I have charge-offs with both? lol I am attempting to discharge $5,000+ from Cap1 and $1,500 from Orchard, so I guess I'm blacklisted now

LOL Not trying to be a smarta$$, but how does this buyout change anything for you? If you would have been 'blacklisted' before with both companies you still will be and actually this may make it easier on your ego, you will only get one rejection not two!

[DesdemonaB]

Tazunemono

I BK'ed all three - Cap1, HSBC and Orchard - and Cap1 sued me prior to the BK - Cap1 approved one month after discharge - and I applied for HSBC 6 months later, I had no plans to touch an Orchard card again.

As HHM said wouldn't affect me till my HSBC expires and I am issued a new card. I will cash out my rewards on my HSBC card prior to my new card is issued in 10/14 as I doubt it will convert to a Cap1 rewards card.

[Flamingo]

I remember when Chase bought out Washington Mutual which gave us our first Visa after discharge with a nice limit and annual percentage rate of 11.99%. When the change took place a few years back and the informatoin sent to all Washington Mutual former card holders, Chase upped the percentage rate on all accounts; our increase went up to 12.50%. Expect a percentange increase with your new card when all is said and done. Hopefully it will be only 1/2 percentage point as ours was...The only way out will be to close the account and not make any more purchases.

[IBroke]

I got my letter on Monday...

I received that letter, too.

[tobee43]

I remember when Chase bought out Washington Mutual which gave us our first Visa after discharge with a nice limit and annual percentage rate of 11.99%. When the change took place a few years back and the informatoin sent to all Washington Mutual former card holders, Chase upped the percentage rate on all accounts; our increase went up to 12.50%. Expect a percentange increase with your new card when all is said and done. Hopefully it will be only 1/2 percentage point as ours was...The only way out will be to close the account and not make any more purchases.

oh those where the days! as flamingo points out one can expect an increase in their percentage rate!

[jetsfan2010]

Interested to see if anyone gets new credit from both companies now in the rebuilding stages.

[DesdemonaB]

Here's showing my credit age: Providian to WAMU to Chase. In my girls dress-up bin are my old Providian cards from 1998.