Will grad student w/ low income qualify for Sapphire Preferred?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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kryptonite
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Will grad student w/ low income qualify for Sapphire Preferred?

Postby kryptonite » Mon Jul 16, 2012 3:16 pm

I'm going to be a graduate student in the fall and wanted to apply for the Sapphire Preferred card because I will be spending a lot of time traveling for the next few years (didn't really like Freedom's rotating categories list).

As you guys already know, the CSP is great for getting travel rewards and I was hoping I could get approved for a card. Although the annual fee is kind of turning me away, I figure that it might be something good to have, especially for the more intangible benefits (warranty protection, etc.). I'm also thinking of making the CSP my primary card since I'm not too happy with my current credit card.

I have a pretty good credit history. My opened my first card in college (Citi) about 6 years ago and I've never missed a payment since (I don't have any other credit card; my CL is 6K). I had about 20K in college loans that I've also paid off. After checking out a few websites, my credit score is around 750 or more.

Unfortunately, however, I won't be many much money in graduate school (<12K per year) so I think that Chase might deny me the card because I don't meet the income requirement. Has any other student experienced the same problem?


CC Deville
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Postby CC Deville » Tue Jul 17, 2012 5:52 pm

Because of CARD Act every bank will ask for your income and they will use the amount you provide to calculate your ability to repay. Now, if you make $12K a year but you have very little expenses and no debt, you could be approved for a card with a low limit. However; Sapphire Preffered is a Visa Signature or World MasterCard which will require a credit line of at least $5K.

You may have to wait until your income is higher or apply with a coapplicant that has a higher income.

Crashem
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Postby Crashem » Wed Jul 18, 2012 1:22 pm

If that Citibank card is only card, you might also get denied for thin file. CSP is minimum of 5k and your Citibank card is close to that. Personally, I think it is okay to app before you start school and state your current income so I think income will be less of an issue. They will see your debt including your college debt which I assume you can afford at current income. When you hit grad school, I assume those loans will get deferred. So why shouldn't you get all the positives and negatives of each scenario.

Since you are going back to grad school, you probably will be laying off applications during schooling so why not app. Worse you get a wasted HP that your credit score will recover from in a year. So go for it. Even if you get rejected from CSP, I would recommend getting 2 other credit cards (assuming citibank is only one) for a total of 3 before grad school starts. At least three will build a solid credit profile and score best.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

kryptonite
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Postby kryptonite » Wed Jul 18, 2012 11:28 pm

Very good points. I think I'll aim a little lower and apply for another card, build my credit profile, and see if I want to reapply for the CSP the future. Thanks!

Regnohspf
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Postby Regnohspf » Thu Jul 19, 2012 11:49 am

i actually got denied for a chase sapphire (non preferred) version with only a 12k income. said insufficent income and i also at the time only had one credit card as well. its best if you just build for now and wait a year. put your foot in the door with chase and show them your responsible with credit.

you should just app in for the chase freedom. the ultimate reward points i believe are shared between the freedom and sapphire so you can start saving points now and then use the CSP and get the added points bonus later on.

think long term :)
Wells Fargo Student Credit Card Visa - $1300 (February 2011)
American Express Zync Charge Card (February 2012)
Chase Freedom Visa- $2000 5% rotating (April 2012)
Citi Forward Visa- $3000 - 5x at restaurants, amazon.com (April 2012)
Chase Sapphire Preferred Mastercard World Elite - $5000 (July 2012)

Credit cards left to attain
-Amex BCE/BCP

kryptonite
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Postby kryptonite » Thu Jul 19, 2012 9:21 pm

I'm glad I listened to you guys...I think I got emotionally attached to the CSP and needed a reality check. I applied for the Freedom today and was instantly approved. Maybe I'll apply for the CSP (or something better) in the future :)

Regnohspf
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Postby Regnohspf » Mon Jul 23, 2012 3:12 pm

Congrats on your Freedom :)
Wells Fargo Student Credit Card Visa - $1300 (February 2011)
American Express Zync Charge Card (February 2012)
Chase Freedom Visa- $2000 5% rotating (April 2012)
Citi Forward Visa- $3000 - 5x at restaurants, amazon.com (April 2012)
Chase Sapphire Preferred Mastercard World Elite - $5000 (July 2012)

Credit cards left to attain
-Amex BCE/BCP

agp
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Postby agp » Mon Jul 23, 2012 3:50 pm

Congrats on the Freedom, it is a great card. It's not my fanciest card, but it's definitely the most used.

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

MagneticStripes
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Postby MagneticStripes » Sat Jul 28, 2012 1:47 am

What's the lowest income anyone's heard of getting this card with?

Regnohspf
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Postby Regnohspf » Thu Aug 02, 2012 3:28 pm

i just got approved 2 days ago with 40k income
Wells Fargo Student Credit Card Visa - $1300 (February 2011)
American Express Zync Charge Card (February 2012)
Chase Freedom Visa- $2000 5% rotating (April 2012)
Citi Forward Visa- $3000 - 5x at restaurants, amazon.com (April 2012)
Chase Sapphire Preferred Mastercard World Elite - $5000 (July 2012)

Credit cards left to attain
-Amex BCE/BCP



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