23 year old professional student trying to build credit

For just about anything you want to get off your chest about credit cards.
27 posts
3lite
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23 year old professional student trying to build credit

Postby 3lite » Tue Sep 17, 2013 9:42 pm

I want a good credit score so by the time I graduate I can buy a house etc.

Right now I only have the BoA Rewards Platinum Plus Visa that I got back in 2009.

What credit card should I get right now? And is paying rent with a credit card good?

Thank you.


SClay
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Postby SClay » Wed Sep 18, 2013 12:56 am

Hey there!

Let's start with the card you have. What is the current limit? On average, how much of that limit do you utilize each month? Utilization is very important. I recommend checking your credit profile through one of the three major bureaus. Additionally, there are websites such as CreditKarma where you can receive your credit score free on a monthly basis. This is not as accurate, however.

As for what card you should get, it depends on a variety of factors. What do you want to use the card for? What rewards do you want? Do you care for an annual fee? There are thousands of cards out there. Paying rent with a credit card is only good if you do it right. This would mean making sure paying rent won't max out your limit. As long as your utilization is at or below 30%, It is completely fine to pay rent with a credit card.

Your credit profile should be fairly decent considering you've had a line of credit for ~3-4 years. Have you ever gotten any Credit Line increases? Also, you say you're a student. Do you have any student loans in your name or co-signed?

Hope this Helps! Please get back to us to better asses your needs.
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3lite
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Postby 3lite » Wed Sep 18, 2013 2:03 am

Current limit = 800. Never asked for an increase. I have only used the credit card a dozen or so times to be honest. I have student loans in my name (I think) and I have never missed a payment but I'm still in school so I'm not being charged yet.

Once you recommend me which credit cards to get, I will start utilizing them for everything I buy. I don't think I am ready for an annual fee type of Credit Card unless I know I can make that money back.

Thanks.

mdl28
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Postby mdl28 » Wed Sep 18, 2013 8:36 am

Amex blue cash everyday, it has no annual fee and can open some doors for you in the future.
MDL

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SClay
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Postby SClay » Wed Sep 18, 2013 9:58 am

3lite wrote:Current limit = 800. Never asked for an increase. I have only used the credit card a dozen or so times to be honest. I have student loans in my name (I think) and I have never missed a payment but I'm still in school so I'm not being charged yet.

Once you recommend me which credit cards to get, I will start utilizing them for everything I buy. I don't think I am ready for an annual fee type of Credit Card unless I know I can make that money back.

Thanks.


So over the course of around ~3-4 years you've used your credit card seldomly, and have paid it off while (assuming) not having a high utilization. This will look great on your credit profile! Here's what I recommend doing:

Getting your credit score. Once you have this you will have a better idea of what cards you can be approved for. Some cards I would recommend that give excellent rewards and have no annual fee would be:

Chase Freedom
Discover IT (Student edition available. Way easier to get approved for apparently)
American Express Blue (Offered in three versions: Blue, Cash and Sky)
Capital One Journey (Student card)
Capital One Secured AU | $1851 | 10/2013
Capital One Journey | $1000 | 03/03/2016
American Express Delta Gold | Denied | 03/13/2016
Citi Bank Double Cash | $1000 | 03/13/2016
Chase Amazon Visa | Pending | 03/13/2016

takeshi
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Postby takeshi » Wed Sep 18, 2013 10:23 am

3lite wrote:Once you recommend me which credit cards to get, I will start utilizing them for everything I buy. I don't think I am ready for an annual fee type of Credit Card unless I know I can make that money back.

As stated above, you need to give us a lot more info if you want recommendations. No AF narrows it down a bit but there's a massive list of no AF cards. What are you major spend categories? It's certainly possible to make back an AF if a card's rewards and your spend work out but we don't have any of that info from you. What rewards and benefits do you want? Give us as much info as possible. Otherwise it's just up to you to browse around and find a suitable card.

3lite wrote:And is paying rent with a credit card good?

It's neither good nor bad in and of itself. It sounds like you need to spend some time reading up on credit scoring. Your credit isn't scored based on what specific purchases you make. It's all about payment history, utilization, AAoA, number of accounts, derogs, etc.

Charging and paying bills that you're already paying with cash is a good way to increase usage without increasing debt, assuming that you continue to treat the charges as cash payments and pay off those charged amounts.

3lite wrote:I have only used the credit card a dozen or so times to be honest.

If that's the case then you've probably had 0% utilization the majority of the time. For optimal scoring you'll want to avoid 0%. However, as stated above, 30% is the generally recommended limit. Under 10% is generally ideal.

mdl28 wrote:Amex blue cash everyday, it has no annual fee and can open some doors for you in the future.

If you don't have an AmEx membership it can be beneficial considering that AmEx backdates. Also Google and read the 3X CLI thread (not on this site).

Midori
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Postby Midori » Wed Sep 18, 2013 10:44 am

Does your landlord already give you that option? If it has no fees, and if you pay your bill in full every month, go for it! If you don't pay in full every month, or if it would give you high utilization, I'd recommend you keep your rent and your cards very separate.

I checked into a few different pay-your-rent-with-a-credit-card companies the other week. A lot of them require a 2.5-3-4% credit card processing fee. A lot of landlords aren't going to be thrilled to absorb that cost, so that leaves it to fall on the tenant. If your rent is $1000/month, are you going to want to pay an extra $300-$480/year just for the rewards points?

3lite
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Postby 3lite » Wed Sep 18, 2013 9:53 pm

Rent is 625 per month. I pay rent in full every month with cash. But 800-625 is way over that 30% mark so it's not recommended? I mean I have the funds...

As stated above, you need to give us a lot more info if you want recommendations. No AF narrows it down a bit but there's a massive list of no AF cards. What are you major spend categories? It's certainly possible to make back an AF if a card's rewards and your spend work out but we don't have any of that info from you. What rewards and benefits do you want? Give us as much info as possible. Otherwise it's just up to you to browse around and find a suitable card.


For people with AF credit cards do you guys make that money back at the end of the year in some fashion?

I spend money on :

Gas
Rent
Food
Clothes (Online/Retail)
Random stuff off Amazon

willgatlin25
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Postby willgatlin25 » Sat Sep 21, 2013 2:13 pm

I want to know what a "Professional Student" is.... lol sorry, I couldn't help it.

im_mr_awesome
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Postby im_mr_awesome » Sat Sep 21, 2013 2:21 pm

I would probably be considered a professional student. It's a person in a professional setting (I work sorta education/government), but am still a student and will remain a student for a few years more than the 4 I planned on.

Alternately, it could mean you're Van Wilder.
Scores on the mend...
FICO: 650 (Discover/TU, 6/23/2016)
Cards I Use Citi Double Cash, Chase Amazon, Capital One QuickSilver
Sock Drawer Discover IT, Citi Diamond Preferred, AE Visa, QuickSilver One, Walmart CC, CareCredit, CreditOne (keeping for history for now)
Short Goal Reach 680



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