About Orchard Bank
Orchard Bank issues MasterCard and Visa credit cards through HSBC Bank Nevada, N. A., a subsidiary of one of the world's largest financial organizations, which has almost 10,000 offices in nearly 80 countries. The Orchard Bank frequently mails credit card offers to people with a poor credit history or no credit history at all, offering them the opportunity to get a card either with a matching deposit or with a low credit limit.
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History
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The Hongkong and Shanghai Banking Corporation, or HSBC, was established in 1865 at a time when trade was growing rapidly among China, India and Europe. In 2003, the company acquired Household International Inc., the parents of both Household Finance Co. and Beneficial Finance Company, which provided deposits and loans to over 53 million customers. That acquisition was HSBC's springboard into becoming one of the world's largest issuers of credit cards through the Orchard Bank.
Warning
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Orchard Bank can charge some of the highest interest rates among credit card issuers because of the risk in lending to people with poor credit. The interest rate, if the account is paid "as agreed," is about 21.9 percent, but it can reach almost 30 percent for those accounts in technical default. So, unless you have poor or nonexisting credit, be sure that the credit card you choose from the Orchard Bank is appropriate to your financial situation.
Features
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Orchard Bank issues credit cards based on the credit-worthiness of the person making the application. If you have poor or nonexistent credit, Orchard Bank Secured MasterCard may be a way to get a fresh financial start. It calls for a deposit matching the credit limit so the interest rate charged is relatively small. Or if you are on the opposite end of the spectrum, you can apply for a Household Bank Low APR MasterCard that charges 9 percent or less for purchases.
Geography
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Unlike doing your banking at a branch, all Orchard Bank credit cards are issued by mail, and your periodic statements will be sent to you each month. In 2008, Orchard Bank will mail over 25 million offers for its card to people all over the world.
Misconceptions
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Some people feel that companies like HSBC exist only to charge high rates of interest on the funds they lend. Actually, there is a place for this company that takes extraordinary risks in order for people with poor credit, or those just starting out, to establish a good credit history.
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