MemberSince99 wrote:I'd suggest just keep using the IT for 6 months, and get 6 months history reporting for it, and then after you get LOW utilization (meaning under 10%) reporting for the 6th month, you can app for a couple of other cards. Don't make the mistake of opening cards just to open cards - look at them and decide what is important to you over the long run and go for keepers. After 6 months Chase Freedom is possible maybe an Amex revolver like Green for the lower fee with you being a student, etc.
JMR wrote:Thanks! Do you think the AMEX Green is a good starting card or is it worth it to pay a little extra for Gold?
darkguy2 wrote:I would say no to the Green unless you spend enough to warrant the $95 fee. Nearly all of the extra benefits you get with a Green you also get with your IT.
I agree with Member that you should wait at least 6 months. What is your income? Unless you have the willpower to control your spending then I suggest you do not get more credit then you can pay off. I have over $8K and if I maxed that out then I would be in trouble. You may tell yourself that you can control it but it will be very tempting. I do not know how many times I have seen something expensive and told myself that I can just put it on one of my cards and pay it off later. I have to force myself you think it through before I buy it. You really should never buy something that you do not have the cash to pay for without the credit card. That is when you start getting into dangerous territory.
It is good that you are starting early with your credit. I got my IT when I was 20 just over a year ago with a $1,500 limit. Was my first card and since then you can see that I have grown my credit limit. But it is a double edged sword. I could easily make one mistake and put too much on my cards and default. That means that all of the hard work that I have done to build my credit has just become a liability. I just want to make sure that you understand that credit cards are not free money that you can spend on whatever you want. You WILL have to pay it back and you better be sure that you will be able to do that or you will not be able to get a AMEX or other nice card for a very long time.
I wish you the best of luck on your credit journey since you have just taken the first step.
tigerowl06 wrote:Enjoy your Discover card, that's a good one. As for AMEX, charge cards are a great way to get your foot in the door with them, and a great way to get a larger monthly spending ability if you need it (understanding that you have to pay in full at the end of the month). If I were you, I would wait the 6 months and go for the Blue Cash Everyday. You'll love it, and there's no annual fee. It seems AMEX is being generous in terms of approvals/credit lines these days. I think you can sidestep the charge card if you want. If you get denied, you can always get a green card and keep it until you get out of school or whatever and then apply for a revolver when you get a job and I'm sure you'll be approved. You'll get the backdating that way, too. But to reiterate what I said, in light of how things are right now, I would go for what you really want first.
JMR wrote:I was researching the BCE and BCP as options to apply for. Gas is one of my higher spending categories so that could be an option for sure. I'm not sure the real benefit of the charge cards from AMEX, the green only gives you 1pt per $1 spent, doesn't seem all that great but I could be mistaken. PRG has better point values but the AF is $175 which I don't think I can offset. BCE might be a good choice but maybe BCP might be better have to calculate approx spending on those categories.
JMR wrote:Thanks for the input. My income is around 800-1k a month during school and around 3k a month for the summer months. My school is all paid for from scholarships which I am grateful for. 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. I'm waiting for the 3 month mark to maybe get a CLI from Discover because I've payed down my IT before the statement this month already because I was close to credit limit and I want to keep my debt to credit limit low.