Which card to get (beginner)

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danielvdm
 
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Which card to get (beginner)

Postby danielvdm » Sat Mar 14, 2015 6:39 pm

Hey guys, I come here after a frustrating few months with dealing with Chase.

I opened a student account in Dec and they told me I was pre-approved for any of their cards. I said I'd think about it and then decided I wanted a Sapphire Preferred, but when I applied online I was rejected. I recently visited a branch and they told me I should have gotten a letter saying why I was rejected (which I never got). Now they say if I apply again I could take another hit to my score (well thanks, Chase...).

Anyway, I need to build credit ASAP. Here's my background:

I'm 19.
I've never taken out loans and never been in debt (apparently that's a bad thing when applying for a card though).
I have a good amount of cash assets to my name.
I recently withdrew from my university to create a startup. Said startup has decent funding from good investors.

Sorry if I gave too much/too little info. Not really sure how specific I need to get.

Basically I don't want to have to have a $100 limit card for forever until I can qualify for the ones I want. I feel like I'm a very low-risk person but I understand that the American credit system doesn't really care.

I'm really an idiot when it comes to credit and I have no idea what I'm doing. So with the provided background info, could someone more knowledgeable in this space give me advice as to what track I should take to get to something like the Sapphire Preferred? I travel a lot, so stuff like no foreign transactions fees and points for travel really appeal to me.

Thanks a lot!


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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Mar 14, 2015 9:24 pm

The Sapphire Preferred (which is often called 'CSP' here) has a $5k minimum credit limit. It would be unusual for a lender to give an unsecured card with an limit that high to someone with little history. Chase, from what I can tell, likes to see that a customer already has a card with a comparable limit.

Since you have the cash, I'd go for a low/no fee secured card with modest rewards from a credit union.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

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obxfisherman
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Postby obxfisherman » Sat Mar 14, 2015 9:54 pm

I would start out with store cards, such as Walmart, Amazon, Lowes, etc. These suck, and they have high interest rates, and no real rewards, but it is a start. Secured cards are a route you may have to take first however, and so in that case i'd go with a credit union, or Capital one, that's how I started. It went capital one, store cards, now chase and others. I'm only 20 so I can relate. If you don't mind me inquiring what is your startup? What field is it in? If you don't want to go into detail thats fine, i'm just curious.
Cards Currently In My Wallet(See Avatar)
Chase Marriott Rewards Visa Signature (Daily Purchase): 13.4K
NFCU Visa SignatureCash Rewards: 5K
Sheetz Discount Card 3c Off PerGallon Of Gas Everyday

Total Credit Card Limits Roughly: 61.5K

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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Mar 14, 2015 10:19 pm

obxfisherman wrote:I would start out with store cards, such as Walmart, Amazon, Lowes, etc. These suck, and they have high interest rates, and no real rewards, but it is a start. Secured cards are a route you may have to take first however, and so in that case i'd go with a credit union, or Capital one, that's how I started. It went capital one, store cards, now chase and others. I'm only 20 so I can relate. If you don't mind me inquiring what is your startup? What field is it in? If you don't want to go into detail thats fine, i'm just curious.


Getting store cards is a very slow and inefficient route to getting the high-spending, general-purpose cards that an entrepreneur would need. Store cards might work for someone who isn't spending much money and has a lot of time. A high-limit secured card with a credit union would work until the OP can qualify for a CSP or PRG-caliber card. Since the OP has the cash, why not make good use of it as collateral?
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

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otter
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Postby otter » Sun Mar 15, 2015 7:36 pm

CarefulBuilder14 wrote:Getting store cards is a very slow and inefficient route to getting the high-spending, general-purpose cards that an entrepreneur would need. Store cards might work for someone who isn't spending much money and has a lot of time. A high-limit secured card with a credit union would work until the OP can qualify for a CSP or PRG-caliber card. Since the OP has the cash, why not make good use of it as collateral?


+1

Secured card with CU is a better option than store cards. They tend to graduate within a year. Another option might be a secured card with Bank of America or perhaps Wells Fargo or US Bank. The Bank of America secured card graduates quickly and you can get one with rewards as well.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

LessIsMore
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Postby LessIsMore » Sun Mar 15, 2015 8:42 pm

I'm going to chime in with everyone else in suggesting a secured credit-card through a credit union. I used one to rebuild my credit following the discharge of a Chapter 13 bankruptcy. If you're lucky like I was, you'll find a credit union that charges no fees (beyond the required and refundable security deposit). And, if you're lucky, you'll find a credit union (like mine) that guarantees to convert the card to an unsecured card after so many consecutive on-time payments (12 in my case). Bottom line? It did the trick. A year after I got the card, It was converted to an unsecured card. And a year later (after my Chapter 13 notes were removed from my credit file), I used the good CRA notes on that one card to acquire 13 others.
"People with a clever plan can assume the role of the mighty."
Paul Kantner

liberate
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Postby liberate » Mon Mar 16, 2015 7:27 pm

My first card was the Discover More at $500 CL. You could try that, but I'm not sure if the It has the same acceptance.

Add me to the secured card crowd. My friend (international student) came here with no credit and put ~$1,000 down on a secured card. She's since (~2 years) upgraded to the Discover It and is sitting on ~700 FICO.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...

takeshi
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Postby takeshi » Tue Mar 17, 2015 7:54 am

danielvdm wrote:I'm really an idiot when it comes to credit and I have no idea what I'm doing. So with the provided background info, could someone more knowledgeable in this space give me advice as to what track I should take to get to something like the Sapphire Preferred? I travel a lot, so stuff like no foreign transactions fees and points for travel really appeal to me.

Building credit takes time. Don't choose the CSP now. Generally one needs a lot of spend to make the CSP worthwhile. Don't just rely on "travel", no FTF and "points". Run the numbers for your spend. If considering points'miles cards then look at redemptions as well since they impact value per point/mile. If the CSP suits your needs/wants at a point in the future you can consider it but things may change by then.

Standard advice for someone starting out with no credit is secured and/or credit unions with more lax approval criteria.

danielvdm wrote:I've never taken out loans and never been in debt (apparently that's a bad thing when applying for a card though).

Mix of credit is just one factor. It's not the debt itself that helps.



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