Advice on my second card?

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dreamymind
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Advice on my second card?

Postby dreamymind » Sun Apr 10, 2016 12:59 pm

Hello,

I am a college student (18yo) and I'd like to build credit. I have had a Comerica College Rewards Card for 6 months ($500 CL). I pay off balance in full and keep utilization ratio around 5-10%. My credit score (according to Credit Karma) is 675 (TU) , 682 (Equifax). I applied for the Discover it for Students credit card 2 months ago and was declined due to a short credit history.

I am thinking about taking out a credit builder loan and getting a second credit card.

Here's my top spending categories (the ones that I can pay for with a credit card):

Groceries and Restraunts - mostly Walmart (18% of spending)
Misc shopping - mostly Amazon (15% of spending)
Air travel (8% of spending)

If I could get any credit card, I would get City Double Cash, but unfortunately it requires excellent credit. What card would you recommend that I should get? I'd like to build credit and if possible, maximize rewards.

Thanks!


takeshi
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Re: Advice on my second card?

Postby takeshi » Tue Apr 12, 2016 7:06 am

dreamymind wrote:My credit score (according to Credit Karma) is 675 (TU) , 682 (Equifax).

These scores aren't relevant except for creditors/products that actually use a TU or EQ VantageScore 3.0. It's never just about score but you can refer to the Credit Pulls Database (Google to find).

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kcm7
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Re: Advice on my second card?

Postby kcm7 » Tue Apr 12, 2016 10:23 am

Have you considered getting a student card? Discover has one, for example, which also has rewards. Your limit will probably still be low (so really maximizing rewards will be tricky). But you're 18 with scores in the 600s. Work on the building and the maximizing rewards can come later.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

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Vattené
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Re: Advice on my second card?

Postby Vattené » Tue Apr 12, 2016 9:31 pm

If you got turned down on Discover's student card I think you will have trouble getting a good rewards card at this point. You might try Capital One's annual fee version of their Quicksilver. A $39 AF isn't exactly appealing, but it may be attainable at this point and the rewards will compensate for it once you spend $2,600/year on it.

I think you'd be better off applying for a store account, like Walmart or Amazon. It's probably not what you want to hear, but the truth is at your age and with your history you'll need to establish some credit before rewards can become much of a priority. I'd also avoid a loan just for the purpose of building credit (it will take A LOT of rewards to make up for the interest you will pay). Plus, it is totally not necessary to get your credit on good footing. I speak from experience because I've done it myself with nothing but credit cards. It's good you are thinking about this now and it is easy to build great credit at a young age if you are proactive and don't slip up, but it still takes a few years.

Good luck!
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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kcm7
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Re: Advice on my second card?

Postby kcm7 » Wed Apr 13, 2016 9:35 am

kcm7 wrote:Have you considered getting a student card? Discover has one, for example, which also has rewards. Your limit will probably still be low (so really maximizing rewards will be tricky). But you're 18 with scores in the 600s. Work on the building and the maximizing rewards can come later.



Ooops my reading comprehensions skills are obviously not great. I totally missed the fact that you got turned down for the Discover Student card. Vattene's advice is perfect. Follow that. :)
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

Kevin86475391
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Re: Advice on my second card?

Postby Kevin86475391 » Thu Apr 14, 2016 9:33 pm

I absolutely agree.

The reality is that building strong credit takes time. Use what you have for at least another 6 months, then consider trying again with Discover's student card or another student-oriented card. Above all else, don't get discouraged. It SHOULD take a couple of years (minimum) to qualify for your 'dream' cards. Take it slow and just focus on continuing the responsible usage you've demonstrated so far.

Avoid the loan unless you actually need a loan and would want/need to take it out regardless of building credit. It's an expensive, unnecessary option for building credit.



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