In recent credit card industry shaking news Capital One bought the U.S. HSBC Credit Cards division. This includes the very popular Orchard Bank Secured Credit Card line of products.
We can only speculate but it does appear that the credit card or lending industry in consolidating, just like the banking industry in earlier years. We further speculate that one of the driving factors in Capital One buying HSBC and Orchard Bank was to place Capital One Bad Credit Cards as a cornerstone in the sub prime lending industry.
Orchard Bank Credit Card is a trusted, established, brand name in bad credit credit cards. Orchard Bank was one of the few sub prime lenders that continued almost uninterrupted through the mortgage collapse and sub prime lending disasters (both credit cards and mortgages).
One of the more unique and consumer appreciated was the orchard credit cards application process. The way it worked is you applied or provided you information and necessary details. And then you were matched up with the credit card offers you qualified for.
Ultimately you were ‘accepting’ the final card offer that was best suited for you (unsecured, secured …) We heard from many people with bad and even people looking for a credit card with no credit who ‘loved they application’ process.
Capital One Dominating Sub Prime Lending
In recent years Capital One has taken large and aggressive steps to place themselves front and center when it comes to bad credit and credit cards. They created a very good prepaid MasterCard.
They have a secured credit card, and an unsecured credit card for fair credit applicants. We certainly hope that Capital One is able to create a similar application approach for consumers as it truly makes a lot of sense.
If you are applying for a credit card but aren’t sure what you will qualify for then – run my credit and tell me what types of cards I qualify for!
Orchard Bank Credit Card Discontinued!
Capital One has quickly stopped accepting application for the Orchard Bank Credit Cards. It is arguable as to the exact reasons but it could be that Capital One wants to increase the brand market share with bad credit lending?
It doesn’t make a lot of ‘academic business’ sense in the fact that Orchard Bank has had MILLIONS of card holders over the years and as mentioned is a trusted brand in an otherwise market that same may even call ‘shady’ and some credit cards marketed to individuals with bad credit are VERY BAD DEALS!!
It will be a loss to sub prime lending with the Orchard Bank Credit Card departure. We certainly hope that Capital One or others will rise to fill the void and offer a secured credit card to help build credit.
So we will see what happens in the future of bad credit lending and watch Capital One closely. We believe thus far they are a reputable and legitimate bank and creditor.
We are unsure the current viability or if HSBC Bank continues to operate on a global scale. Earlier mentioned they have sold all the credit card holding in the United States, so we will have to see.
(The history below was accurate at the time of it’s writing – it appears that a lot of HSBC future and future holdings may be in question and / or moving now or in the near future – we will update as often as possible)
The HSBC Bank operates in 85 different countries and has over 9,500 offices world wide.
They are headquartered in London and are one of the largest banking and financial companies. They have stocks listed on the; New York, Paris, Hong Kong, and London stock exchanges.
There are roughly 200,000 share holders through out 100 different countries. Often people are curious what the HSBC stands for?
It is from the founding group that was called the Hongkong and Shanghai Banking Corporation. It was founded in Hongkong and later moved their headquarters to London.
It was established in 1865 by Thomas Sutherland a Scotsman he wanted to run the bank on “sound Sottish banking principles.”
It is the largest bank in Hongkong. The tag ‘The Worlds Local Bank’ comes from the local expatriate community calling it ‘The Bank’.
They offer a variety of services including; personal financial services, commercial banking, corporate banking, investment banking and markets, private banking and more.