Next step for a student

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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simplee
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Next step for a student

Postby simplee » Sun Jan 06, 2013 1:37 pm

I have a Citi Forward (2 yr, $1600 CL) and I'm looking to expand my credit portfolio.

-College student (individual income: ~$10,000, parents' income: $350,000 - they pay for my tuition and rent)
-Most of my expenses are: groceries, clothes, Amazon.com, restaurants, travel
-CK score: 760
-interest rates don't matter for me since I pay my bills off in full

I would eventually like a card like the Sapphire Preferred since I plan to travel abroad extensively but until then, would I be qualified for a Southwest card or a Chase Freedom? and are they worth it for me?

Thanks!


CC Deville
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Postby CC Deville » Mon Jan 07, 2013 1:10 pm

My advice is to get an Amex for future backdating purposes. It was one of the best, unitentional (didn't know about backdating back then) things I did when I was 20.

Do you fly Southwest a lot? If not, skip it. Chase Freedom/Slate could be opened now so that later on after you have started your career you could do a product change; however, you'd lose out on any new account promos.

It is my understanding (though I could be wrong) that Shappire and Sapphire Preferred are Visa Signature or World MasterCards-both of which generally require a $5K credit line. Chase is not normally a bank that will be willing to be your first $5K credit card grantor. So get that Citibank credit line up to $5K over the next few years for a better shot at Sapphire.

The best grocery cash back card for you would be Amex Blue Cash Everyday (you may have a chance at approval) or Bank of America BankAmericardCash Rewards. Amazon and restaurants are already covered by your Citibank Forward and travel rewards can come later in life.

So, to sum up, my advice, an Amex card (Green or Blue Cash Everday) and/or BankAmericard Cash Rewards based on your spending. Other than that, concentrate on your studies and build your relationship with Citibank Forward (ie getting the credit line up to $5K); you have a lifetime ahead to obtain the cards you really want when you need them.

jrv
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Postby jrv » Mon Jan 07, 2013 2:48 pm

AMEX Green or Gold is your best bet. It has served me well since I was in college in '92.
Main:
AMEX Platinum NPSL, Member Since 92
AMEX Blue 15K
PenFed 11K
PNC Visa 20K
First National Bank Omaha Platinum Visa 25K
Citi Simplicity 11K
Drawer:
50K Total

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Snowman
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Postby Snowman » Mon Jan 07, 2013 4:51 pm

Simplee- I think you can qualify for the Chase Freedom because it is one of the easier chase cards to get (depending on your credit history). What do your fico scores look like? I don't think you will qualify for the Southwest card because the card is a visa signature (me thinks they will not approve you because of the income, even if everything else is okay) and for the most part visa signature cards have 5k lines and they want you to have experience with more then one card. You could go for an Amex charge card ( I have the PRG card, but I am thinking about downgrading it before the annual fee hits.) Or you can try for the Delta Gold Amex since it is the easiest of the Amex revolvers to be approved for. Ck also does not give you a real fico score, it is a Fako and you have to buy it from the myfico website. They have your Equifax and Transunion scores that lenders look at.

Good luck in whatever you decide to do.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.

simplee
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Postby simplee » Mon Jan 07, 2013 5:08 pm

Thanks everyone for your helpful responses! I wasn't sure about how charge cards worked with the credit score since I feel like I heard somewhere that they don't report credit limits? Could anyone clarify :) ?

Germanmuscle
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Postby Germanmuscle » Mon Jan 07, 2013 7:02 pm

Im kind of in the same situation as you few months ago. I make 10,000 a year and a full time student, 19 years old. I applied for the chase freedom couple months ago and got denied. My only problems were too many inquires (4-6) and too short of credit history (7 months)(1 account). However, I think you should apply because you already have 2 years of credit history and assuming you don't have many inquires.
FICO:
EQ: 679 (MyFico)
TU: 703 (Citi Pull/CreditKarma)
EX: 717 (CreditSesame)

Cards:
Wells Fargo Cash Back $1.5k
Citi Forward $2k
Discover It $1k
Capital One Journey $300

simplee
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Postby simplee » Mon Jan 07, 2013 8:52 pm

jrv wrote:AMEX Green or Gold is your best bet. It has served me well since I was in college in '92.


Thanks so much everyone for your helpful responses! I was wondering - how does a charge card affect your credit score? I feel like I've read somewhere that they don't report credit limits?

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Snowman
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Postby Snowman » Tue Jan 08, 2013 12:40 am

IME, a charge card shows on your CR's as an open amount of credit rather then revolving. It also shows how much the highest balance has been (i.e. mine would be 600, ya it's low, but slowly I'm hoping it will get higher.) And that is what will show when you look at the balance on your CR's that was reported, and with a charge card you must PIF every month. It doesn't affect your score much from what I have seen however because utilization is not factored in. I also have 3 revolving accounts currently but with no balances reported and my credit scores are 710+ right now. And yes IME as well I have seen that they do not report credit limits, rather on the CR it just lists it as an open account (I'm not totally sure what this means, but hopefully someone else will be able to shed light on this.) rather then a revolving.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.



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