New to Credit (18 Year Old)

For just about anything you want to get off your chest about credit cards.
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thom02099
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Postby thom02099 » Sun Feb 23, 2014 6:54 pm

Lots of great advice from the folks above, and you being young and finding this place is also a wonderful thang!

I understand it is hard seeing items and knowing you can put it on a card but that isn't that way I approach it. I always make sure I have the money in my account to cover the purchases I make. Almost treat it like a checkbook.

Sounds like you've got a good head on your shoulders about credit, and that's a philosophy to keep throughout your life. Sometimes us oldsters get caught up in buying and living beyond our means that's NOT the way to do it. Many of us learned a hard lesson or two, when we were in our 20s, looks like you've seen that pitfall and decided not to go there. Good for you ! ! !

Accumulate the cards that will benefit you, but there's no rush to get them all before you're 20! The recommendations above are very sound, these are folks who've been down the road you're about the travel. Take your time, grow your credit and in 10 years, you'll be in a very good place.
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016


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JMR
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Postby JMR » Sun Feb 23, 2014 7:16 pm

MemberSince99 wrote:Is that 6 month limit the case on the student cards only? For the regular cards it's 3 months now.


And with that income, if you feel the gold is of value, go for that instead. I made that suggestion based on assuming a student type income. The reason Amex is so important to get your foot in the door with is the backdating. So I'd recommend that.


When I talked with a rep at Discover it was 3 months for IT Student too. With backdating for an AMEX could I say get the Green card for a year and as soon as AF comes around I cancel and then in 5 years when paying the AF syncs with my spending I can apply again and backdate to when I had it 5 years before so this would increase AAoA?

JMR
Citi AAdvantage Platinum Select- $5000 (3/15)
American Express Gold- NPSL (3/15)
Chase Freedom- $1200 (3/15)
Nordstrom- $1500 (9/14)
Discover IT- $1000 (2/14)

TCL: $8700

FICO (TU)- 716 (3/15)

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JMR
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Postby JMR » Sun Feb 23, 2014 7:18 pm

thom02099 wrote:
Accumulate the cards that will benefit you, but there's no rush to get them all before you're 20! The recommendations above are very sound, these are folks who've been down the road you're about the travel. Take your time, grow your credit and in 10 years, you'll be in a very good place.


Thanks for the response! Yeah with a lot of people it is hard to have the right mindset. My parents went down the wrong path with credit and got into some debt and had to climb out. If you treat it responsibly it can very much work in your favor!
Citi AAdvantage Platinum Select- $5000 (3/15)
American Express Gold- NPSL (3/15)
Chase Freedom- $1200 (3/15)
Nordstrom- $1500 (9/14)
Discover IT- $1000 (2/14)

TCL: $8700

FICO (TU)- 716 (3/15)

Kindler
 
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Postby Kindler » Sun Feb 23, 2014 8:02 pm

Congratulations on getting your first card. I also started out with the Discover it for students last July. My credit history was nonexistent before applying for that card, so I was glad that I was given a chance. Like you, I was approved with a $500 limit.

It was the only card I applied for at that time, but I decided to add a Visa or MasterCard to the mix after three months. I went for the Citi Dividend (again, the student version), as the Forward's points system seems less valuable to me than the straight 1% back on all purchases for the Dividend. Citi gave me a $2000 limit, which exceeds my needs for sure.

Once I hit the six month mark with Discover in January they did automatically increase my credit line to $750. It's handy to not have that $500 limit now, so if you show decent usage and always pay promptly it wouldn't be unusual to see an automatic increase after a while with Discover.

My spending isn't very high as a student, so I'm not too concerned about rewards, but to add to my mix I decided to go with a MasterCard earlier this month (Bank of America's Better Balance Rewards). I was approved, so my history was apparently sufficient for a non-student card after nearly seven months.

I guess where I'm going with all of this is that you can try to use my approvals as somewhat of a guideline if you wish. Citi may just want to see some other history, so if you decide to go with them you should wait a few months at the minimum. After six months, you can probably get approved for cards from other banks as well, but after you reach a year you should have better chances with lenders such as Chase. Just be patient starting out and you should be able to see more approvals after you build a history.

darkguy2
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Postby darkguy2 » Sun Feb 23, 2014 8:11 pm

JMR wrote:When I talked with a rep at Discover it was 3 months for IT Student too. With backdating for an AMEX could I say get the Green card for a year and as soon as AF comes around I cancel and then in 5 years when paying the AF syncs with my spending I can apply again and backdate to when I had it 5 years before so this would increase AAoA?

JMR


They must of changed since I got mine.

I would say to get it for the free year and then at the end try to change it into a BCE that has no fee. You do not really want for Amex to give you a card and at the end of the year you just cancel it. That can be called burning as you are telling them that you do not want their credit after they gave it to you.

The nice thing about the backdating is that if you got your first card on 12/2014 and then got your second one on 1/2015 that second one will show up on your credit report as 1/2014. That means your first card is a month old and your new one is already a year.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

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JMR
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Postby JMR » Sun Feb 23, 2014 8:44 pm

Why would it backdate a year if my first card with them is only a month old?
Citi AAdvantage Platinum Select- $5000 (3/15)
American Express Gold- NPSL (3/15)
Chase Freedom- $1200 (3/15)
Nordstrom- $1500 (9/14)
Discover IT- $1000 (2/14)

TCL: $8700

FICO (TU)- 716 (3/15)

darkguy2
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Postby darkguy2 » Sun Feb 23, 2014 11:50 pm

That is the way it works. All new cards after your first one will backdate the year to the year of your first card.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

thom02099
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Postby thom02099 » Mon Feb 24, 2014 9:31 am

darkguy2 wrote:That is the way it works. All new cards after your first one will backdate the year to the year of your first card.


Yup! You're 18. Further down the road, go for your first AMEX if you wish. Keep in mind that ALL the charge cards have the same underwriting provisions, and thus reportedly are easier to get. The revolvers have different underwriting criteria and are a bit more difficult.

The great thing about AMEX, and especially for someone at a young age is that backdating. As stated, AMEX will show your MSD (member since date) from the YEAR you first applied for a card, but the MONTH in which you actually apply. Many of us here have had AMEX cards in our younger days, perhaps burned them or let the cards lapse, and reapplied at a later date. When we applied at that later date, we got the age back for our new account, hence, my AMEX card has a MSD of 1991, but in reality the cards I hold were obtained in the past 5 years or so. (Sidebar- I actually had an AMEX back in 1976, but they couldn't find records that old for me for backdating purposes). That backdating is beneficial when one's AAofA is being calculated, giving us a somewhat artificial length of credit history....but something we'll take, nonetheless ! ! !
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016

PallasAthena
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Postby PallasAthena » Mon Feb 24, 2014 9:51 am

The Discover IT is a great card... better than the Capital One that denied you, especially in terms of rewards. I love mine and use it for the 5% cash back and on Amazon.com where I can apply the cash rewards directly to my purchase.
When I was a student, I had an AmEx Blue card. No annual fee. I think that card is better than the AmEx Green, which is a charge card. Remember to use it responsibly and try to keep your utilization rate low.
If you get denied, call the reconciliation lines and ask them to reconsider. (Just do a Google search on reconciliation lines for the companies that turned you down.)
Oct '16
TU: 783, Equifax: 772
Ch 7 BK in '06, finally dropped off in '16
2 mortgages
paid off car
0 CC debt (Disc, Citi, and WF Amex)
furniture debt: $1800
Closed unused CCs, was dinged a few pts, but recovered
I filed for BK in '06 and was in debt over $500K. Never again! You can do it too! :lift:

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JMR
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Postby JMR » Mon Feb 24, 2014 10:25 am

Thanks for the response. Yea I'm happy my Discover was approved and not the capital one.
Citi AAdvantage Platinum Select- $5000 (3/15)
American Express Gold- NPSL (3/15)
Chase Freedom- $1200 (3/15)
Nordstrom- $1500 (9/14)
Discover IT- $1000 (2/14)

TCL: $8700

FICO (TU)- 716 (3/15)



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