credit/charge card for a responsible student?

For just about anything you want to get off your chest about credit cards.
10 posts
patrick201112
Green Member
Green Member
 
Posts: 5
Joined: Sun Dec 04, 2011 1:39 pm
Location: CT

credit/charge card for a responsible student?

Postby patrick201112 » Sun Dec 04, 2011 4:00 pm

Hello,

I will be turning 18 in a couple of months, and I'd like to start establishing credit. I have looked into the student credit cards, like the Citi Platinum for College, Discover for Students, etc, but I'm not satisfied. I want to purchase a laptop for around $1500, and I want to get the automatic extended warranty through my credit card.

I make about 5k a year on a part time basis, and I'd rather not have my parents cosign, but if they had to, it wouldn't be a problem.

I would pay my balance in full every month, so a charge card or credit card would be fine.

Realistically, would I get approved for an Amex green card or a Marriott Rewards credit card from Chase? By the way, I know about the Zync and I'm not interested...the rewards stink.

Any help would be appreciated.


ivotedale
Centurion Member
Centurion Member
 
Posts: 232
Joined: Sun Jul 17, 2011 11:47 am
Website: http://www.ivotedale.tumblr.com/
Location: Mesa, AZ

Postby ivotedale » Mon Dec 05, 2011 11:57 pm

You don't really have too many choices as far as a super rewards card goes, mainly since you don't have any credit. If anything, I'd shoot for a student card, a card from your bank, or better yet in my opinion, a secured credit card.

I recall attempting to apply for a handful of credit cards (before I cared about credit) when I was working part time as you are- and consequently did not meet income requirements for most, though I shot for Chase Freedom/other similar cards. Eventually I 'settled' for Capital One, which built me enough credit over time for Amex/Chase Freedom (though the CapOne card is still great, $0 foreign transaction fees, double cashback for travel, etc).

For me personally, I went with Zync not because it has a stellar rewards program, but it too for its 'easier' approval, Amex's benefits and customer service: I knew that's the company I wanted to stick with for the rest of my life, not because of silly introductory offers or immediate rewards. I do think it's great to see others in their 50's, 60's, and beyond utilizing Amex cards still from when they first got one- Amex praise aside, I digress.

Since you only make around $5k/ yearly for now, the $95 annual fee is probably not worth it, as far as any rewards go (though the first year is free). Not too entirely knowledgable about Mariott Rewards though.
Currently: American Express Blue Sky, American Express Zync, Chase Freedom Visa, Capital One Newcomers--->converted to Capital One Quicksilver Mastercard NO AF

patrick201112
Green Member
Green Member
 
Posts: 5
Joined: Sun Dec 04, 2011 1:39 pm
Location: CT

Postby patrick201112 » Tue Dec 06, 2011 10:46 am

I wouldn't mind getting the Zync, but what kind of credit limit would they give someone with no credit? Also, I've heard that Amex charge cards are not great for building credit because they don't report your "credit limit."

commdiver
Gold Member
Gold Member
 
Posts: 35
Joined: Tue Nov 29, 2011 4:42 pm
Location: USA

Postby commdiver » Tue Dec 06, 2011 12:53 pm

I stopped by a local bank and had my father cosign with me. I suggest you do that or get a student card. After two to three years of paying at least the minimum payment each month, you should have good enough credit to get a "better" credit card.
Current credit cards:
American Express: Blue Cash Everyday, Fidelity Investment Rewards
Discover: It
MasterCard: Chase Ink Cash
Visa: BB&T Visa Signature, Capital One Business Platinum, Chase Freedom, Citi Forward

DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Tue Dec 06, 2011 1:48 pm

commdiver wrote:I stopped by a local bank and had my father cosign with me. I suggest you do that or get a student card. After two to three years of paying at least the minimum payment each month, you should have good enough credit to get a "better" credit card.


Don't get in the habit of paying the minimum every month. If you cannot afford to pay the full balance, you cannot afford to make the purchase. Get in the habit of asking yourself "Do I have the cash to pay the bill now?" before every purchase. If the answer is "no" then don't make the purchase. It's as simple as that.

amexguy321
Centurion Member
Centurion Member
 
Posts: 115
Joined: Wed Nov 16, 2011 4:28 pm
Location: Massachusetts

Postby amexguy321 » Tue Dec 06, 2011 2:51 pm

since you are not even 18 yet, this is what i did... btw im turning 21 soon...

start with a student credit card from your bank, they will give you <1000 limit. make use of this card responsibly, and then go for something like capital one. i personally went with the lufthansa miles and more from barclaycardus. they gave me a 1k limit and i earned 1/2miles/$. not very good, but another stepping stone for getting something better. another year later i was instantly approved for a zync, and an hhonors from amex.

my buddy recently applied for the zync (also a student) and was denied. i believe that the reason for this is that he only has a student credit card from his bank (limited history)

i would not apply for amex right away for the marriot or w/e. you will lower your credit score by having them do a hard pull and odds are you will get denied, especially these days and your income is low as you are a student.

hope this helps!

ivotedale
Centurion Member
Centurion Member
 
Posts: 232
Joined: Sun Jul 17, 2011 11:47 am
Website: http://www.ivotedale.tumblr.com/
Location: Mesa, AZ

Postby ivotedale » Tue Dec 06, 2011 8:31 pm

patrick201112 wrote:I wouldn't mind getting the Zync, but what kind of credit limit would they give someone with no credit? Also, I've heard that Amex charge cards are not great for building credit because they don't report your "credit limit."


For those newer to credit on the forum, some have reported a slim $250 credit limit to begin with regarding the Zync, although it's been lifted either when the card was activated, or within the first month's statement. Fortunately for me I didn't have a limit upon receiving the card.

Although the major bureaus do not report a credit limit, charge cards do still help building credit in the ways of:

Image

1. Payment History (35%)
2. Length of Credit History (15%)
3. New Credit (10%)
4. Types of Credit used (10%)

as per MyFico.com, what's in your credit score?

See also, What's Not in your Credit Score.

Ultimately though, pay your bills on time, and in full.

Again, I'd vote for your own bank's card, a secure card, or a lower-tiered card like Capital One- then work your way up to the bigger guys.
Currently: American Express Blue Sky, American Express Zync, Chase Freedom Visa, Capital One Newcomers--->converted to Capital One Quicksilver Mastercard NO AF

sdoonan
Gold Member
Gold Member
 
Posts: 32
Joined: Wed Nov 02, 2011 9:02 am
Location: Hempstead, NY

Postby sdoonan » Tue Dec 06, 2011 10:13 pm

I'm 20, applied for my first card at 18 (this was before the CARD Act made this more difficult to do). My first card was the CitiForward for College Students. Decent rewards program, no annual fee, worked for me then and still does with their automatic APR decreases (3 months of on-time payments in a row = -.25% to APR up to 8 decreases for a 2% total reduction.)
Cards I Carry:

Visa: CitiForward Student (1k CL, 15.24%), Capital One Student Journey Rewards (.5k CL, 19.8%)
Discover: More Student (1k CL, 17.99% regular, current rate 1.9% through 3/6/12) (Primary card at this time)
AMEX: Blue Cash Everyday (2k CL, 21.25%)

patrick201112
Green Member
Green Member
 
Posts: 5
Joined: Sun Dec 04, 2011 1:39 pm
Location: CT

Postby patrick201112 » Wed Dec 07, 2011 4:47 pm

What about the people that say, "If you get approved for the Zync, you'll get approved for the Green or Gold." Any truth to this? After all, Amex is making more money off of a Gold card, and since its a charge card, how risky is it to give one to a college student?

amexguy321
Centurion Member
Centurion Member
 
Posts: 115
Joined: Wed Nov 16, 2011 4:28 pm
Location: Massachusetts

Postby amexguy321 » Thu Dec 08, 2011 8:58 pm

i really doubt that statement. a gold card is not geared towards students with an income of ~10,000. i also dont believe the high fees can be justified for the kind of spending an average student does..



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 1 guest