A new guy that needs advice

[bluesnowman]

Hey guys,

I need some advice about what should do. A little History, I am a student with about 12k of income, and I recently started my credit history with a BOFA Cash Rewards card that I was able to be approved for in April. On October 27th, I applied for a Discover More and a Citi Forward, and I was fortunate enough to be able to be approved for both with CL's of 1,500, and on my BOFA card, my CL is 700. I currently have a total of 4 inquires (At&T,BOFA, Citi, and Discover.) My statements cut off on the 8th (citi) 12th (Discover) and 26th (BOFA). I had a 1.00 balance that was left by accident (myfico free trial...lol.) but I paid that off on Friday. I am planning to apply for an AMEX and a Chase in December after the 26th, either on the 29th or 30th. I am looking for advice on whether I should leave a balance (I have heard that they are beneficial for your scores on other forums and or it is a bad idea to carry a balance on any card) Currently I have nothing charged on my new cards until the statements are cut, and on my BOFA I am considering leaving a small balance but I am not sure if it will be the right thing to do to get approved for other cards. 

I used Transunion's three credit bureau report, and based on the 11/2/12 update, these are my scores (I am going to view them weekly-monthly, I have not subscribed yet to it, so idk.)

Equifax: 731

Experian: 738

Transunion: 739

I am hoping to go for the Gold Card (not the PRG), and Chase Freedom. I would like to get the BCE is as well, but I will wait until May-June to apply for it, since If I am fortunate enough to be approved for AMEX, I would like to build some history with them. 

I just need advice If my plan is a good one, should I wait? should I leave a balance on any cards etc.

Any advice, comments, or feedback is appreciated.

-Snowman

[bluesnowman]

bump

[ccnewcc]

First off, Congrats!

So your history is 7 months old, you're a student, and making 12k.  You got 3 cards with 3700 CL and a cell phone bill.

My question to you is more a of caution, Do you really need 2 more cards next month?  If you get approved (reguardless of what CLs they grant you), would 5 cards be enough?

You may find yourself at a point where you become overextended during your college years and ruin your credit.  

Be cautious.  Credit cards aren't a fasion statment.

[bluesnowman]

CC- I tend not to go crazy and overspend, I generally budget myself, and there are some points where I get more hours (typically I work 45-50 hours, plus a second job, but some weeks I get 55+ hours) I typically run 400 through my cards (200 for Gas using my BOFA Card, 200 Forward for Food and Phone bill, and Amazon, but I will use Discover for Amazon this Quarter.) and save the rest for the next month. The only reason why I'd like to get the Freedom Card is because 1.) I want to have a history with Chase 2.) Discover is not as widely accepted as Visa/MC, 3.) so it'd be a good cash back card as wel 4.) Lastly, Like Discover, it would be for categorical use only (that month I would avoid Forward or BOFA card depenidng on the Category.)l. I purely wanted the AMEX Gold because I like the fact that I have to PIF and there is no interest or anything like that, and the benefits could be useful, I do not mind the annual fee either. And yeah 5-6 cards are enough, I feel that I am disciplined enough not to go overboard, and also I'd like to maximize my score as much as I can, so one day If I ever need a car loan or the like, my chances of getting approved would be better. And yeah true that, Credit Cards are not a fashion statement, and I know the risks of going crazy with one, but I know I can discipline myself and not go overboard and overextend myself. 

[bluesnowman]

bump

[Elcid89]

Amex is sensitive to income. While your scores certainly qualify for their cards, your income would (IMO) argue against them approving a card. YMMV though.

[scientifics]

I feel that at this point, you should at least wait for your AAoA to hit 1 year before you apply for new cards. I also don't think it's smart to pay the Amex Gold AF on a 12k/year college student budget! Be patient and let your credit grow! I think you have an excellent portfolio already with your income and credit history!

[webhopper]

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@Elcid89 wrote:

Amex is sensitive to income. While your scores certainly qualify for their cards, your income would (IMO) argue against them approving a card. YMMV though.

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+1

Chase is also very inquiry sensative... I recommend gardening for another 6 months before you apply for Amex or Chase. Consider going for BCE or Blue in 6 months to avoid the AF and "lock in" your member since date.   I wouldn't see the value in paying such a high AF for the gold, on your income.

[bahbahd]

I too see no value for you w/ the Gold. I think you are doing great so far and could easily stay where you are at till you graduate college, assuming that it will be soon. You are 21?

I too would be very cautious. Even though you are probably very responsible with your money, who knows the future. I would wait to apply for the other cards when you have income that is 3 or 4 times the your current income at least. Amex isn't known for extending credit to people with income like yours.

[Anonymous]

Since both Chase and Amex are prime CCC's they typically expect to see 1 year other open accounts before approving for their own but YMMV. You seem to be very budget conscientious (which is a good thing), but I am trying to understand why you would want to app for the gold vs. the green? Currently, the Green has a no AF for the first year and the rewards structure is the same. If after a year you want the gold you can always PC up to the Gold but at least you saved $125 for the year and still earned the same rewards... just something to think about.

But, all-in-all, some do get approved for these cards with less than 1 year credit history. You will never know how you fit into the lending criteria until you app. Even some people who "expect" to be approved for certain cards end up being denied. If you really want the amex before the end of the year, go for it and at least you will know how you fit into their underwriting. The Freedom - IMO - there should not be much of a rush for because the current 5x point categories might not work out for you anyway (but if they do you can certainly try).

Best of luck!!!!