Approved for 1st card - what now?

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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omgroman
 
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Approved for 1st card - what now?

Postby omgroman » Sun Jun 23, 2013 8:01 pm

Hi all.

So i have been reading the forums this past week, and after seeing how many of you all recommended the Discover IT for Students card to first timers, I applied, and today I received an email saying my card is on it's way, and i've been approved.

I'm yet to find out how much my credit line will be, I imagine i'm not going to know until I get my card in the mail. But i'm quite anxious and I really don't know what to expect - or what I should or should not be doing with my first card.

I read somewhere you should never spend more than 25 or 30% of your credit line? Or what is a good percentage to spend, vs not spending ?

and say I dont really use my card at all (i'm more interested in building my credit now that i'm graduating college within the next several months) - will this have a negative affect on my credit if it's there and I'm not really using it? Or will my credit score stay the same and not go up any?

Interested on any input - I know you've all been in my shoes and have some tips for me :)

Thanks!


MemberSince99
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Postby MemberSince99 » Mon Jun 24, 2013 5:56 am

You can find out your limit. You can either check their online application status page, just Google "Discover application status" and you will find it, or call them and ask and they will tell you.

You can use as much as you want, as long as you do not exceed your limit, HOWEVER what matters is what reports to the credit bureaus. You have a "statement date" on which your card reports the balance. Make sure that ON THIS DATE (they can tell you what it is) you are ideally reporting under 10% of your limit.

For the highest score you should let an under 10% limit report. If you don't report a balance it will be a slight hit on your score (nothing significant do NOT sweat this), the only danger is they will eventually close it for lack of use so buy a pack of gum or something everything couple of months with it to keep it open.

Be advised that if you do use it, Discover is known to do mid-cycle reporting to the credit bureaus sometimes. I've read it's caused by things like reporting a new address or asking for a credit line increase. Just be aware of this again don't let this keep you awake at night.

Treat it like a debit card and you can't get into trouble. At your age with your first card that's a good thing. Just think of it as a debit card with a Discover logo on it.

takeshi
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Postby takeshi » Mon Jun 24, 2013 10:38 am

omgroman wrote:and say I dont really use my card at all (i'm more interested in building my credit now that i'm graduating college within the next several months) - will this have a negative affect on my credit if it's there and I'm not really using it? Or will my credit score stay the same and not go up any?

If you're interested in building your credit you need to show you're using your credit (i.e. utilization > 0%).

omgroman wrote:Or will my credit score stay the same and not go up any?

Probably not. Consider the factors that determine your credit. AAoA goes up over time. Your score won't improve as quickly if you leave it at 0% utilization though. Your credit is also affected by on time payments and other factors. There are plenty of resources out there for reading up on credit and you should look into them for a better understanding of how your credit is scored. A credit monitoring service (there are free and pay options and pros and cons with each) can be beneficial for keeping an eye on your credit and accounts.

HookEmHorns
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Postby HookEmHorns » Mon Jun 24, 2013 4:57 pm

My first card was a Discover IT. Instead of using cash/debit and receiving nothing in return, I used it for all purchases and got 1% back plus 5% categories. Why not put all your expenses on the card and get paid for making purchases that you were going to make in the first place?
AMEX PRG~1/14--backdated to 2012
AMEX BCE~6/13--backdated to 2012
Chase Freedom~5/13
Discover IT ~12/12

:cool:

FutureBillionaire
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Postby FutureBillionaire » Mon Jun 24, 2013 5:59 pm

HookEmHorns wrote:My first card was a Discover IT. Instead of using cash/debit and receiving nothing in return, I used it for all purchases and got 1% back plus 5% categories. Why not put all your expenses on the card and get paid for making purchases that you were going to make in the first place?


This is the answer you're looking for. In addition, I wouldn't let it report more than 10% usage. That means, you should pay it down before your billing statement closes.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

flan
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Postby flan » Mon Jun 24, 2013 6:37 pm

FutureBillionaire wrote:This is the answer you're looking for. In addition, I wouldn't let it report more than 10% usage. That means, you should pay it down before your billing statement closes.


On the other hand, if you're not planning on applying for other credit, you don't necessarily need to worry about it. When you go to apply for other credit, then you can do this. But don't let that be an excuse to buy things you can't afford.

im_mr_awesome
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Postby im_mr_awesome » Mon Jun 24, 2013 6:55 pm

Agreed. If you're not planning on applying for loans or other cards, you *can* carry a high balance. Just make sure to pay it down several months (3+) before applying for new credit. It's still not advised you carry a high balance because it's not good to owe people money if you can't afford to pay them back at any time.

I got into a bad situation with credit but have been lucky to be able to pull myself out of it. Don't let having lots of available credit give you the illusion you can go spend that money freely. I did and it almost ruined me.
Scores on the mend...
FICO: 650 (Discover/TU, 6/23/2016)
Cards I Use Citi Double Cash, Chase Amazon, Capital One QuickSilver
Sock Drawer Discover IT, Citi Diamond Preferred, AE Visa, QuickSilver One, Walmart CC, CareCredit, CreditOne (keeping for history for now)
Short Goal Reach 680



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