Should I go for Blue and question about scholarship

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Should I go for Blue and question about scholarship

Postby ronaldo » Fri Mar 15, 2013 3:57 pm

Age 20

1 Credit Card (Discover) that I have had for 19 months
Balance paid off every month the day after I receive a statement
Credit score around 735
Income from job: $8000
Scholarships: $18000/yr

1) Do you think I should apply for the Amex Blue Card and can the scholarship legitimately be used? I know some of you do but I wont if it'll get me in trouble.
2) If I don't use scholarships, do you think there is any chance I can make it with 19 months of perfect credit with no balance?

Barack Obama
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Postby Barack Obama » Mon Mar 18, 2013 4:02 am

With regards to scholarships, technically you're only supposed to report it as income if it can be used to pay off credit card debt. This would apply to any excess aid checks you may get. This is true for all forms of "income".

I'm not endorsing lying about your income, but I do want to add that a credit card company will generally only care whether or not your balance is being paid. Some people inflate their income by adding scholarships or household income. Unless you're not paying your bill, most credit lenders won't come after you.

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Postby swipe_masta » Mon Mar 18, 2013 11:52 pm

Since you're only 20yrs old, I'm assuming that you don't do your own taxes and that your parents put you on their tax return (which is smart). By law, Any person of or under the age of 22 who is in school, is technically considered a dependent, tax-wise speaking. That's not really important, but I'm just stating it for reference...

Now, if you were filing taxes yourself, any scholarships, grants, loans, etc. money that is leftover after paying for your tuition and SCHOOL expenses that you can pocket and use for PERSONAL expenses, is technically considered income, therefore can be taxed, which in turn means that you are not lying by stating that it is in fact your income.
Let me break it down for you:
School related expenses: textbooks, school supplies, anything related to school.
Personal expenses: cost of living, gas, food, any expenses you have while attending school.
$18,000 scholarship
- $10,000 tuition
- $3,000 educational expenses
=$5,000 that you can pocket
so you can claim $5,000 plus whatever you make from an outside job, in your case $8,000 = $13,000/yr as your income. This is ONLY if you pocket the leftover money. Some scholarships, grants, loans, whatever, only pays for your school expenses and you don't physically get the money, in which case, you cannot claim it as income.

With all this said, you should never lie on any legal document or contract, which includes financial services, but I have never heard of anyone getting in trouble for adding a couple zeros on their income status on a credit card application. The worst they can do is decline you. Actually, that's a lie. The WORST they can do is report you for trying to commit fraud (this is totally legit; if you don't believe me, google it) but this 99.99% of the time does not happen. No one is ever going to waste their time concerning a little fib when they can just decline you and move on to the next application. I'm sure more than half the people in the US have lied on a credit card application at least once. Also, I don't know if you've ever looked at a credit report, but nowhere does it state your income. As long as you have a clean report and high score, you can get any credit card you want!

I'm betting you have a student version of Discover? How big is you CL? Where did you get this 735 score? FICO/FAKO? IMO Amex will not approve you. They usually pull Equifax or Experian depending on what you're trying to do. Also, you should really consider a Visa or MC. What if you run into a place that doesn't take Discover or Amex? I suggest you try for Citi Forward for students.

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Postby ronaldo » Tue Mar 19, 2013 1:08 pm

Thanks for the advice guys. I don't think I'll include scholarships and will probably hold off applying until I get a few more months just to make it to 2 years at least.

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