Did I just get really lucky?

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lnelson4
 
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Did I just get really lucky?

Postby lnelson4 » Sat Jul 14, 2012 3:06 am

Alright so I just turned twenty yesterday, am a college student, and only have a part-time summer job. My taxable income is only ~$9000 yearly. I have been an AU on a credit card of my mother's for two-three years now. A couple weeks ago I got a Discover Open Road offer in the mail, and since I did not have a CC solely in my name, decided to give the application a go. I figured there was a decent chance of approval due to my college status and AU history.

I apply and find that I have been Instant-approved with a CL of $1000. Pretty exciting considering its my first real card and all. Whenever I got the credit score portion of my new account info with them I was surprised to see that my TU FICO was 750. Way higher than I was expecting given my limited history. Also, my interest rate is the lowest available for the card (12.99 or 12.49, can't remember). When calling to activate the card, the CSR and I were talking for a bit and he couldn't seem to believe that this was the first card I had solely in my name due to the APY and such.

So I wait for a week or so and decide to apply for an AMEX gold. Probably a dumb decision, I know, but what the heck, its just 1 inquiry. I wasn't really thinking I was going to get approved, and sure enough, I got a dreaded wait message. Don't call us, we'll call you type of thing. Check my email a couple hours later to find that they need my home address verification. I call them up, and upon providing that info I find out that I've been approved! That was Tuesday, so I'm still waiting on the card/credit score associated with the pull, but needless to say, I'm pretty ecstatic. I got my realistic "dream card" (I love the points to miles conversions and towing benefits) within the first month of caring about my credit.

So I guess my question is, did I get lucky, or was an AMEX gold not actually a stretch card for me? For instance, my report is so thin that CreditKarma can not give me a score, nor can the other one that has Sesame in its name. I do have a checking, savings, and brokerage account, all with reasonable assets in them, so I suppose that helped. On the application I was very genuine with my asset totals and income amount. (The prospect of being disingenuous and then getting hit with a FR sounds horrifying) My father has been a high-spending AMEX member since 1982 (I don't know if that type of thing ever factors in to their decisions at all), and he is also my technical employer, although I assist one of his underlings. I know that AMEX charge cards are not as hard to get as the average person might think, but still..it seems to me given such a limited history I shouldn't really have been approved.

Also, thanks to everyone who contributes on this site, there is tons of stuff to learn here.


DavidNY
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Postby DavidNY » Sat Jul 14, 2012 9:51 pm

Amex charge cards aren't a stretch at all as they aren't necessarily extending much credit.

The different Amex charge levels (green, gold, platinum) refer to the benefits the cards offer, not the spending capability.

If any creditor attempted to do a "financial review" I would simply decline.

Good luck with the new cards.

MemberSince99
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Postby MemberSince99 » Sat Jul 14, 2012 10:29 pm

I guess the answer is well it's always lucky to get cards you want but since you were honest, great, then they approved you knowing that. Obviously if you start putting 5k a month through your card with 9k a year reported income, that will raise some flags. But you told the truth and they approved you, so just enjoy and don't sweat it, congratulations to you.

2percentPlus
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Postby 2percentPlus » Sun Jul 15, 2012 12:04 am

MemberSince99 wrote:Obviously if you start putting 5k a month through your card with 9k a year reported income, that will raise some flags.


I think as long as you pay it off they won't mind. Maybe that's a stretch though, I spend about 3X my income

sfoboy85
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It is not luck...

Postby sfoboy85 » Sun Jul 15, 2012 9:49 am

My friend, this was not luck, nor was this accidental...

You were an AU, therefore you do NOT have a limited history... Being an AU means you inherited your mother's entire payment history (on that specific card where you are an AU) and financial institutions consider it like you have been paying those bills for 5-10-15-20+ years....
So that's how you won the game! ;)
AMEX Platinum - NO preset limit!
Credit Union Platinum Visa - $5,000

MemberSince99
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Postby MemberSince99 » Sun Jul 15, 2012 10:17 am

2percentPlus wrote:I think as long as you pay it off they won't mind. Maybe that's a stretch though, I spend about 3X my income


I'm trying to picture how that could work, unless you're wealthy and have money that isn't reported as income? Just curious about that so if you'd like to share, I'd like to be educated, but I'll admit it's none of my business. I'm just assuming of course you don't spend 3x your income and leave the balance hang!

sfoboy85
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Postby sfoboy85 » Sun Jul 15, 2012 1:18 pm

MemberSince99 wrote:I'm trying to picture how that could work, unless you're wealthy and have money that isn't reported as income? Just curious about that so if you'd like to share, I'd like to be educated, but I'll admit it's none of my business. I'm just assuming of course you don't spend 3x your income and leave the balance hang!


That is not impossible at all... My family lovest to come visit me in LAS from Europe and their plane tickets cost approx $1k per person... for a family of 4, that's $4k.... Many times I pay that to get the 1% money back from AMEX (in rewards points) and they just reimburse me later...
That's $4K right there one-time....

Just an example, how all this is possible...
AMEX Platinum - NO preset limit!
Credit Union Platinum Visa - $5,000

2percentPlus
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Postby 2percentPlus » Mon Jul 16, 2012 2:10 am

sfoboy85 wrote:Many times I pay that to get the 1% money back from AMEX (in rewards points) and they just reimburse me later...
That's $4K right there one-time....


Ouch, I couldn't deal with a paltry 1%.



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