Credit card advice for someone about to turn 18

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JamesTN
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Credit card advice for someone about to turn 18

Postby JamesTN » Thu Feb 12, 2015 12:05 pm

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!


popamode72
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Postby popamode72 » Thu Feb 12, 2015 1:07 pm

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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PlyrStar93
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Postby PlyrStar93 » Thu Feb 12, 2015 1:14 pm

Since you are a student, assuming without any credit history, a Discover it for Students should be OK for you at this time. The underwriting criteria tends to be easier than other cards not intended for students, as long as you provide necessary materials for identity verification, which are generally your course schedule, SSN card, address verification (can be utility bill and others), and ID. This is a great way to get started, so try to be satisfied with it for the time being.

As of FIA or American Eagle, it can be hard to say if you are approved or not, not to mention without any credit history. Personally I am negative over this, and would not apply at this time, and only apply for the Discover card and wait several months, at least get my FICO score available (which can be viewed in Discover website and statements). It generally takes 6 months, but I would rather wait even longer to strengthen my credit profile. 1 year should be plenty enough. It doesn't mean you should never try right now - you can try, but you may have a hard time getting them at this time. You might be approved, but if you just pile up two inquiries out of nothing, wait at least 6 months to get stronger credit history and inquiries to fade, which is not a big deal since it's not adding inquiries like app-o-rama. Take it easy, and apply or not to apply at your own discretion.

For your third question, you mentioned the PayPal debit card gives cash back on CREDIT purchases, which means you swipe the card, have it run as credit, and sign (some online purchases may also qualify), instead of entering the PIN by choosing debit on the terminal. ATM withdraws and billpays are not purchases, and should not even count as credit purchases. When you pay your Discover card bills, you either go to Discover website and pull the funds from checking, or go to your bank and push the funds into Discover. Either way, it's not credit purchase, just ACH transfer.

Congratulations on getting 18, and good luck applying for Discover.
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Postby takeshi » Fri Feb 13, 2015 10:16 am

popamode72 wrote: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.

I'd suggest establishing AmEx membership at some point (not necessarily right now) to leverage backdating down the road -- that is, if the OP can find an AmEx issued card suited to the OP.

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Postby Mitch » Fri Feb 13, 2015 1:24 pm

I shouldn't advocate this, but, ask, your parents, if you can include there "annual income" in your discover application. Since your in the same household, technically (according to what a representative told me) It's fine.

I'd apply for the Discover It (for students, make sure you select the right one) and the Capital One Journey card, and Stop. I know for a fact you'll get approved for those cards, if you apply, and just stop there.

Don't app for the American Eagle card. You probably won't get approved unless you have at-least four months of history.

Fiedilty Amex. Definitely don't apply for any american express card yet. Also avoid Chase & Citi until you have at-least 6 months of history.
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JamesTN
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Postby JamesTN » Fri Feb 13, 2015 10:46 pm

My parents have been AMX members since 97. (18 years) would them adding me as an authorized user and me not using it help my credit history at all? I know you can backdate with AMX but I was wondering since I'm just turning 18 if that would even count. Thanks for all of the advice. I will wait on the AEOCC and just worry about the discover it right now. I really appreciate you guys.

JamesTN
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Postby JamesTN » Fri Feb 13, 2015 10:48 pm

The reason I ask about the paying bills off with my debit card is because it counts my Comcast bill as a credit purchase and lets me get CB for that so I was wondering if it would work the same way with cc bills but I guess not

popamode72
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Postby popamode72 » Sat Feb 14, 2015 10:49 am

JamesTN wrote:My parents have been AMX members since 97. (18 years) would them adding me as an authorized user and me not using it help my credit history at all? I know you can backdate with AMX but I was wondering since I'm just turning 18 if that would even count. Thanks for all of the advice. I will wait on the AEOCC and just worry about the discover it right now. I really appreciate you guys.


AUs don't really have as much of an impact as they used to, though I still hear about people getting in with Chase that way.

And Amex stopped doing that after 2011 so if you're trying to get your own MSD to 1997 it won't work.
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PlyrStar93
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Postby PlyrStar93 » Sat Feb 14, 2015 11:51 am

JamesTN wrote:The reason I ask about the paying bills off with my debit card is because it counts my Comcast bill as a credit purchase and lets me get CB for that so I was wondering if it would work the same way with cc bills but I guess not

For utilities you may use credit or debit card as forms of payment, but that usually doesn't apply to lenders, especially credit card issuers.

To be specific, you cannot pay Discover card like the way you are paying Comcast right now. You will have to use a checking or savings account, billpay function, or a check.
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