JamesTN wrote:I have been looking at this forum for a long time and soaking up all the knowledge i can but this is my first post!
I turn 18 a week from today and would like to apply for a credit card on my birthday (does that look bad for creditors?)
I want a credit card to get cash back and to get my credit history started as soon as possible. From looking at the forum I have decided to get the Discover it student card. I made 11K last year that was taxed but nearly 20K from other sources of income that weren't taxed. (when applying i can only put 11K, right?) and i have 3 checking accounts: 1 1.5 years old, 1 2.5 years old, and 1 18 years old. I know this doesn't make my credit score amazing, but i do know it helps a little. I feel that my chances of getting approved for the Discover it Student card is fairly good.
Also i would like to get the American Eagle store card (not the visa) because i spend a good amount of my income there and you get 10$ for every 250$ you spend on it (4%) which would beat most other cards i could qualify for.
MY QUESTION IS: If i applied for both would it hurt my chances of being approved for either? Should i apply for the discover it (my main priority) and only apply for the AEOCC if I'm approved for the IT.?
MY OTHER QUESTION IS: I would really rather have the fidelity cash back visa b/c i have a fidelity acct and would love the 2% cash back rather than the 1% CB from Discover, but i feel my chances of getting that would be very slim and would be a waste of an inquiry. Do you guys agree?
MY 3rd QUESTION IS: i have the paypal business debit mastercard which gives me 1% cash back on all credit purchases. This card deducts directly out of y checking acct anyways so could i / should i make all my payments with the discover card and then pay off the discover bill with the paypal card thus increasing my CB % from 1% and 5% to 2% and 6%? Does it work like that?
Thank you guys for taking the time to help me answer these questions. I really appriciate your time!
I'd focus on getting Discover's student card first. Don't get caught up with too many store cards this early. If that doesn't work out, look into BoA's Cash Rewards card for students and once you get one of those cards to start out with (CapOne Journey I'd consider if you can't get any of those), work with those card(s) for six months, make sure you're paying on time, not maxing out your cards, and if you can, pay in full too after letting a small balance report if you're interested in maximizing your FICO scores as well as avoiding paying interest too.
If you ever end up in a position where you need to carry a balance, never make just the minimum payment on any of your cards and look at 0 APR or low APR cards if you wanna do that.
They sometimes offer that $99 deposit $500 limit secured card that can graduate early too you can look into. Since you really want Fidelity Amex, look into getting in with Bank of America as soon as you possibly can. Use Credit Pulls Database to help you determine which credit bureaus the CC companies pull from where you live and be very careful with how many hard pulls you accumulate from apping for cards.
I think you need to think long term and think about what kinds of bank cards can cover those categories better than what American Eagle can. I'd look into the Amex BCE for department store purchases after six months of using credit.
Take it slow and don't rush too quickly with trying to get everything together. Focus on one thing at a time. With Fidelity Amex, I'd wait until you've established some kind of payment history with BoA on one of their other cards, preferably over six months and then you can possibly look into that card though I think your file would still be pretty thin. Look into getting in with Chase at 11-12 months and Barclays too.
For your last question, you can't use debit cards to pay credit cards usually. It has to come out of your bank account or you can send the CC companies a check, etc.
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