03-04-2013 02:51 PM - edited 03-06-2013 05:08 PM
I applied for my first credit card (Fifth Third's Cash Rewards Mastercard) last week and got approved for $300. I'm starting to think it was a mistake and i'm trying to decide if I should decline it if it's not too late. I originally asked my personal banker to look over my credit report I brought in to see what she thought before I applied. She was congratulating me on my credit score the whole time I was there saying it was very good and that I should receive a high limit. I was hesitant at frist but she kept telling me to sign the papers and I should be fine. She pretty much convinced me to go through with it, and today i'm told my limit is $300.
I'm 23, a college student, 750+ credit score, paid off 2 car loans, and have 1 Sam's Club revolving account that has been paid on time every month since 2007. Here's the bad part, I only make around $10,000 a year. The worse news is that only $5,000 of that goes on my W2 since the other is paid "under the table" even though I pay taxes on it durin tax season. She said only the stuff on my W2 counts and wrote in about $4800 as my annual income...
Will my credit limit always be $300 until I graduate and start making a better annual income?
EDIT: UPDATE: Got approved by Chase Freedom for $1,000!
03-04-2013 03:01 PM
Once you graduate and have real income, and you will be beating off the creditors with a stick, keep the $300 card for a year or so, when you income is near 20k a year income or more apply for prime cards, Chase Freedom, Amex charge card. Get a year with those for 6 months as you add new cards your limits will increase suriprisingly fast. Your Sam's club will be the fastest growing, while they may deny your requests for CLI's now becasue you don't have disposable income. GE is an awesome company to have. My sam's club card went from $800 to $4800 last week after having the card for only 6 months, but I do have the income to back it up. Once you have the income your cards will probably grow faster than mine. I don't have a 750 FICO.
03-04-2013 03:07 PM
If your tax return shows $10,000 income, that's what you use. You said you paid taxes on it all. Income is not always just W2s. Investment income, retirement income, even unemployment. You just have to be able to prove it if asked. If anyone asks for a pay stub or W2, ask if a copy of your 1040 will do because that shows all your income.
03-04-2013 03:07 PM
03-04-2013 03:08 PM
$300 is a very low credit limit and with that score you ahould be able to get at least $1000 anyway you can look for another college cards maybe Cit forward or dividend or the Discover it...and im sure you'll get approved if you have enough credit history (acc under your name not just AU)
03-04-2013 03:14 PM - edited 03-04-2013 03:15 PM
Income is going to be a huge factor right now. I am pretty sure you will have no problem getting college edition cards, but untill you get a higher income, you will be looking at lower limits. Keep yout current card in good standing, and when you get the Income right, you will have you pick of cards. Remember credit score is not everything.
TU 715 No apps to 05/13 cash+ 5/13!!! 738 TU CSP April 13!!!CSP approved May 13!!!
03-04-2013 03:47 PM
I think you're off to a good start. Keep reading everything on this forum and learn as much as you can about keeping that great score. I also think you should try for one of the student cards.
03-04-2013 03:47 PM
#1 you just applied for your first card.
#2 You got a credit card issued by (what looks like) a standard bank.
Don't beat yourself up. Once you show the CCC's that you can handle using a credit card then apply for a decent card. In credit card world you're still a newbie.
|Starting Score: EX: 736 FAKO | TU: 757 FICO | EQ 730 FICO|
Current Score: EX: 736 FAKO | TU: 750 FICO | EQ 730 FICO
Goal Score: EX: 750 FICO | TU: 750 FICO | EQ: 750 FICO
|In my wallet: $12,500 $2,400 |
03-04-2013 04:11 PM
I agree with letting it grow and be patient as many have said. Id also like to add this:
Suppose you max that $300 limit every month. You would be spending 3600 annually, or 75% of your reported income through that single card. As a bank, I would view that as being a high enough limit for your first card.
I think many people here started out the same. Your income will grow, so will your limits. Keep your head up!
03-04-2013 05:06 PM
If you only put down 4800 income what limit did you expect to get exactly? Even a 1000 limit would be more than 20% of your income. I would say you ae lucky to have been approved at all. A credit score is not the only thing that matters when getting a limit. I have a nearly 800 score and US Bank granted me a 1500 limit while First National Bank of Omaha deemed me worthy of 10000. Maybe once you have the card a while they will be more comfortable giving you a higher limit.
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