Recent college grad seeking credit

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4 posts
stefan
 
Posts: 2
Joined: Thu Jul 25, 2013 12:37 pm
Location: Seattle

Recent college grad seeking credit

Postby stefan » Thu Jul 25, 2013 1:06 pm

Hi, I'm hoping to get some advice. I graduated from school recently and will be starting a job with a major tech company soon. I've never had a credit card and thus have no credit, which of course has posed some issues as I move to a new city.

Now I'd like to build credit but am not sure what cards I'll be approved for. I'll be making a very good salary, but apparently that does not make up for lack of credit (I was already denied a Bank Americard). An article on another website suggested that college grads should try to still apply for student cards. Is it ethical for me to still list myself as a student?

I know I could go for a secured card, but I really dislike the idea of a bank holding my money and collecting no interest for a year. Is there no card for people starting out but have salaries that clearly indicate they will be able to pay the balance?

Really appreciate any help--I'm kind of exasperated here :ppp


Midori
Centurion Member
Centurion Member
 
Posts: 204
Joined: Tue Oct 30, 2012 10:25 am
Location: TX

Postby Midori » Thu Jul 25, 2013 7:08 pm

stefan wrote:I know I could go for a secured card, but I really dislike the idea of a bank holding my money and collecting no interest for a year.


My bank currently gives 0.01% in interest checking for accounts under $10k. To find out 0.01%, you divide by 10,000, right? So if I put $2k into interest checking, $2000 / 10,000 equals $0.20. So if you don't like the idea because you're missing out on your rightful interest, there's not a whole lot to miss, and it's not a bad trade to sacrifice 20 cents. If it's a matter of principle, that's different. :o)

Otherwise, I'd look into a starter credit card. They often come with an annual fee. Last fall, I ended up picking a Capital One Platinum when I was sifting through all the starter card offers out there.

mattymatt808
Platinum Member
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Posts: 60
Joined: Tue Feb 12, 2013 5:10 pm
Location: Honolulu, HI

Postby mattymatt808 » Fri Jul 26, 2013 3:33 am

Unfortunately in lenders' eyes, prior credit history is what "indicates that they will be able to pay the balance." Income is factored into the credit limit, but not the approval itself. It sucks to feel like your credit status is lagging behind your career but sadly there is no shortcut. If you took out student loans you have some history but otherwise try your luck with Discover. If that doesn't work you will probably have to hit the secured cards for a year (recommend Bank of America's) or try whatever bank you had a checking account with while you were in college.
$2500 First Hawaiian Bank (6/10)
$4500 CHASE Freedom (2/13)
$3500 Citi Forward (2/13)
$2000 Discover it (2/13)
$9600 AMEX BCE (3/13)
$10000 CHASE Sapphire Preferred (7/13)
$5000 CHASE Ink Plus (8/13)

stefan
 
Posts: 2
Joined: Thu Jul 25, 2013 12:37 pm
Location: Seattle

Postby stefan » Sun Aug 04, 2013 3:06 pm

Thanks for the replies. I'm planning to go with the Bank of America secured, which at least gives some rewards. Feels bad to hand over that much money, though. Some serious incentive to pay it off at least!



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