- Platinum Member
- Posts: 53
- Joined: Sun Mar 03, 2013 2:46 pm
- Location: Nebraska
I'm trying to help out someone still in college and new to credit but I'm not much good at these things, I was once in this situation and feel like I took the wrong fork in the road! Maybe this could be a learning experience for me as well????
This student, currently in college and working part-time was started out with a secured card from Capital One, $49 deposit/$200 CL increased to $300 2 months ago. We checked online and student is prequalified for a Journey card $0 AF. Their question was if they should get something like a Platinum card instead $19 AF, this was to avoid the need for a future upgrade, but as I see it, any card in that tier will need to be upgraded. What I don't like is the need to cancel a card then apply for another hoping to get something better next time. With Capital One, it's very possible to get a Cash Rewards card with a $500 CL and $39 AF.
The kid started with 2 strikes against him because somehow he mom helped him apply for a First Progress card, paid the $500 deposit then told him it was a prepaid card so he thought he could just spend the money off of it without the need to pay it back, then never realized until he got sent to collections what he had. Got that resolved, but the collection is still on his credit reports so Capital One seems to be the only card he can get at present.
I did learn from an online chat with Cap1, the Journey is a card marketed for young adults building a credit history, it's not considered a college card but it's aimed at college students. What doesn't make sense to me is why wouldn't someone pick the Journey instead of the Cash Rewards and skip the AF since both are in the same tier? Of course the really big question, would this kid just be better off gardening that secured card for say 3 to 5 years?
I let myself get into a situation where I now have to cancel my oldest card and it's a bad situation to be in. When you are young and get a starter card, you don't really think much about one day it will be your oldest, but my college card is about 3 years older than any of my other cards and I didn't want to give someone else advice that would put them in the same situation.
I would like to see him go for Barclay, but I don't think he'll make it to the Sallie Mae by his senior year, I'm thinking maybe the rewards card for average credit maybe borderline with a recon. Barclay won't let you do a PC later will they?
I'm only helping someone out by giving advice and pointing them in the right direction. I have no intention of co-signing, adding as an authorized user or anything thing else that might put my own money and/or credit at risk.