Advice for building credit for college student.

[trumpet-205]

Yes, Capital One does engage in predatory lending if you default, but as long as you pay on time (which is what you should be doing for every credit card) and pay more than minimum, you won't run into this scenario. Capital One does offer great credit card for excellent credit. Treat your credit card with respect and they'll too.

Citi mtvU has similar credit requirement as Ctit Forward, making both cards easy to approve for college students. If you can maintain a GPA of 4.0, then mtvU offers more rewards, otherwise Forward beats mtvU. Citi Forward offers 0.25% APR purchase reduction if you pay on time for 3 months (up to 2%).

[Spincel]

I won't using those credit to buy large thing, just for shopping at local food store, or maybe refuel, so it might just a little bit amount. If I want to apply to Citi mtvU, what will my credit should be to get they approve. I saw on their website said no cosigner or minimum income, as long as I have income to provide to them. So would I go to CapOne or Citi, and what good between cash back and point. My father have some cards that include those feature, but I don't like the point thing because it requires much point to trade for something good. By the way, the real thing is when is the good time to reapply credit, because recently apply for Discover and denied. Should I wait about a month or two, then apply for new credit card.

[castlefox]

I thought FICO did not recognise authorised users anymore.  

Make sure to check FICO since its the one that really matters. 

Being an authorised user would be good if your parents (or other person) can pay on time and all that but if they are delequent at all, it looks bad on your record as well. 

[MarineVietVet]

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@castlefox wrote:

I thought FICO did not recognise authorised users anymore.  

Make sure to check FICO since its the one that really matters. 

Being an authorised user would be good if your parents (or other person) can pay on time and all that but if they are delequent at all, it looks bad on your record as well. 

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AU's are still being recognized. At one point there was talk of not allowing AU's as part of the new FICO08 version but that discussion was dropped.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Spincel]

From what I know is that Fair Issac one not regconized it, then again they added it back. I know about that risk, but I use credit card just for vehicle expense like gas and they pay them in time. Now I think I should apply for student credit card and then build up my credit, up until my score is good, I will get out those authorized user.

[trumpet-205]

First, how many inquiries do you have on your credit report?

Second, if you intend to apply a Citi card, its ThankYou reward points are structured that 5pts/$ yields about 3.5% return while regular purchase yields about 0.6% return.

In my opinion cashback is superior to points reward system but Citi Forward/mtvU give nice return on 5 points category (books/entertainment/dining). If you use Citi card primarily on regular purchases you will have less return compare to Cap 1 cashback.

Third, when Citi say it does not need cosigner, it does NOT mean that they go easy on you. In fact Card Act stated that lenders can only issue CC to those (under 21) who can repay debt. Basically Citi will reject you if you do not meet their credit requirement, rather than having a cosigner for approval. And income plays an important role for CC approval and CL. DO aware that lenders might ask you for proof of income (Citi did this to me, I had to submit bank statements to them).

[wollepopolle]

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@Anonymous wrote:

I'm going to chime in here as well and say DONT APPLY FOR A CAPITAL ONE. CapOne is one of the leading creditors who has been known for actively soliciting customers for sub-prime credit cards (preditory lending.)

Please look through the NINE HUNDRED AND NINE PAGES of Consumer Complaints for Capital One on ConsumerAffairs.com

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Ok, you've been spewing your anti-Cap One rhetoric now twice. It's ok if that's from your personal point of view. But adducing a collection of random anonymous complaints does not convince me of your arguments. Rather, there you can read a lot of stories from people who were offended by Cap. One's actions when they didn't have enough money to make their monthly payments. People who are unhappy that if you don't keep your end of the business agreement, Cap. One won't keep its.

There are numerous similar sites with anonymous comments by people who hate Amex or Discover, too.

Your calling Cap. One "pridatory" reminds me of those poster under that link who refer to the company as "Capitol One."

For some people, a Cap. One card might be a good choice. Perhaps not for you. Did you ever have one? What was your experience with this product? Why are you so disappointed by them?

[Spincel]

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@trumpet-205 wrote:

First, how many inquiries do you have on your credit report?

Second, if you intend to apply a Citi card, its ThankYou reward points are structured that 5pts/$ yields about 3.5% return while regular purchase yields about 0.6% return.

In my opinion cashback is superior to points reward system but Citi Forward/mtvU give nice return on 5 points category (books/entertainment/dining). If you use Citi card primarily on regular purchases you will have less return compare to Cap 1 cashback.

Third, when Citi say it does not need cosigner, it does NOT mean that they go easy on you. In fact Card Act stated that lenders can only issue CC to those (under 21) who can repay debt. Basically Citi will reject you if you do not meet their credit requirement, rather than having a cosigner for approval. And income plays an important role for CC approval and CL. DO aware that lenders might ask you for proof of income (Citi did this to me, I had to submit bank statements to them).

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I think I have 1 inquries last month and that all. Second thing, if they need proof of income, what is good to submit. I don't want to submit my bank statement but I willing to submit my payroll.

[ferrari]

I sent them my paycheck and W-2 form

[Anonymous]

Hi, I too am a first-year college student, working part-time and I just started applying for my own credit after being an authorized user on my mom's walmart and HSBC account.  My first app was Citi MTVU card and I was declined for too little credit history and balances too close to credit limits because walmart/gemb cut my mom's limit down to her current balance... So then I apped for Discover Student card and they approved me ($500) after I showed them proof of my enrollment at school. Then I applied for Capital One student card and was instantly approved for $500 and next I tried for the Citi's Student Forward and again, DENIED !  My last app was with Wachovia/Wells Fargo (my bank) and I was approved after showing proof of enrollment ($800)!  So I'm done for now but I would suggest that you app for the CapOne student card and if you don't get approved then try for a store card.  Good Luck to you!