Game plan for college grad - credit cards

[Anonymous]

Hey all,

Looking for guidance on acquiring more credit. Graduating university in May then on to medical school.

Credit snapshot:

VS 3.0 736 on TU & EQ

FICO8 724 on TU

Three cards: Discover it Student (age 12 mo, CL 2500), C1 Journey (3 mo, CL 2000), auth user on parents' gas card (147 mo, CL 1200)

I would like to apply Barclaycard Apple Rewards soon for special financing on new computer for med school, and pick up the Chase Freedom for 5% CB rotating to supplement by Discover it. Other options on my radar are Ally CashBack (2.2% gas/groceries, 1.1% else), Citi 2xCash, and AmEx BC-Everyday.

Goals are to get solid accounts, grow avg age of credit, maximize cash back rewards. I pay in full each month and carry no balance. Questions: good choices for next-up credit cards? Reasonable for good credit score but young credit hx? How long should I wait to apply for first, then how long to wait between? Looking to eventually acquire several more cards to optimize cash back spending.

Thanks for the input!

[Anonymous]

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@Anonymous wrote:

Hey all,

Looking for guidance on acquiring more credit. Graduating university in May then on to medical school.

Credit snapshot:

VS 3.0 736 on TU & EQ

FICO8 724 on TU

Three cards: Discover it Student (age 12 mo, CL 2500) May want to ask for a SP CLI on Discover, C1 Journey (3 mo, CL 2000) Not familiar with this card but does it have an annual fee? I have heard C1 does not really increase CL on their starter cards... maybe someone more informed can pitch in, auth user on parents' gas card (147 mo, CL 1200) This gas card is probably great for your AAOA but depending on the lender, they might not factor this in for your app since you are an AU

I would like to apply Barclaycard Apple Rewards soon for special financing on new computer for med school Might want to ask Discover if they can give you 0% APR for 12 months because you are planning on a big purchase? I think the portal also has 5% back on Apple.com... Might need to up your CL before the purchase though or else you will be maxed out , and pick up the Chase Freedom for 5% CB rotating to supplement by Discover it. Other options on my radar are Ally CashBack (2.2% gas/groceries, 1.1% else), Citi 2xCash, and AmEx BC-Everyday. If you could elaborate on what categories you think you will spend the most on, we may be able to narrow the cards most desirable for your spend. Also make sure to check out themanwhocan's charts on cash back: http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725 (sadly, the SallieMae will no longer be around)

Goals are to get solid accounts, grow avg age of credit, maximize cash back rewards. I pay in full each month and carry no balance. Questions: good choices for next-up credit cards? Out of your list, I highly recommend the Citi DC card. I think Chase Freedom may overlap with your Discover during some months Reasonable for good credit score but young credit hx? I say an Amex card is within reach since you have had Discover for 1 yr but you may want a Visa/MC depending on where you will be and slightly limited acceptance of Discover/Amex compared to Visa/MC How long should I wait to apply for first, then how long to wait between? I would recommend an app spree because then cards will age together but do not think your credit file is strong enough at this time to withstand multiple apps all at the same time. Maybe 6 months apart? Looking to eventually acquire several more cards to optimize cash back spending. I would recommend fewer apps the better. I do not think the Ally card is worth another app since it is minimally (0.2%) more than the 2% cash back from Citi DC 

Thanks for the input!

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First of all, congrats on your medical school acceptance and Happy New Year!

I replied in blue above. Hope this bump will help you get more replies. Welcome to the forum!

[Anonymous]

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@Anonymous wrote:

Hey all,

Looking for guidance on acquiring more credit. Graduating university in May then on to medical school.

Credit snapshot:

VS 3.0 736 on TU & EQ

FICO8 724 on TU

Three cards: Discover it Student (age 12 mo, CL 2500), C1 Journey (3 mo, CL 2000), auth user on parents' gas card (147 mo, CL 1200)

I would like to apply Barclaycard Apple Rewards soon for special financing on new computer for med school, and pick up the Chase Freedom for 5% CB rotating to supplement by Discover it. Other options on my radar are Ally CashBack (2.2% gas/groceries, 1.1% else), Citi 2xCash, and AmEx BC-Everyday.

Goals are to get solid accounts, grow avg age of credit, maximize cash back rewards. I pay in full each month and carry no balance. Questions: good choices for next-up credit cards? Reasonable for good credit score but young credit hx? How long should I wait to apply for first, then how long to wait between? Looking to eventually acquire several more cards to optimize cash back spending.

Thanks for the input!

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For the obvious, you can't grow average age of credit while getting new rewards cards. However, your AAoA is pretty low right now (I don't think the AU card counts, although I'm not 100% on that), which means that new cards aren't going to affect it much. 

I'm not a huge fan of the Barclaycard Apple Rewards. It is 1% back on Apple products and the 18 month financing is somewhat common. CapOne QS has 9 months at 0% and gets 1.5% on everything. I think the Freedom you are looking at has 0% for 15 months. Chase Freedom Unlimited also has 15 months 0% and gives 1.5% on all spend. 

I think I would apply for Chase Freedom, Chase FU, and maybe Amex BCE, although I'm torn on that. If you do get Freedom and/or FU, do not redeem the rewards. If you do, you'll get the expected 1 pt = 1c conversion. However, if you wait until you have time to travel and you sign up for a CSP/CSR, you'll be able to transfer those points to Chase's partners and get up 2c per point, if you're careful (Is that still the going rate?). With the UR program in this stage of your life, the rewards are going to be all about delayed gratification.

[Anonymous]

Thanks for replies guys!

I also like the Citi DC, will put that higher in my list. As for future spending, it's going to be a lot of groceries, clothing, and various necessary technology for the next four years @ med.

I believe Barclaycard Visa with Apple Rewards is 3% with Apple purchases, 2% restaurants, and 1% everything else, so it might be nice for a big laptop purchase. Also has special financing any time, not just at the beginning at card opening. Then again, Discover may have a 5% on Apple.com which I'll have to check on, and possibly get APR break for large purchase. But I just got a CLI, and might need more CL for a big purchase (Macs arent cheap!).

Yeah my longer term plan has CSR once I get decent income, and Freedom/FU points can transfer and redeem for 25% more value on CUR, or transfer 1:1 to other programs for up to 2 pts. I have previously applied for Chase FU, right before I picked up the C1 Journey 3 months ago. Denied for lack of CH despite good relationship with Discover, and denied again on recon, so Chase may just be tough for me at this point...

[Anonymous]

A lot of great suggestions here, but also don't forget the Amazon Store Card. I'm too poor to afford Apple products, but I'd think it makes sense to buy Apple products from them sometimes.

If so, then that could be your best route in dealing with the credit limit issue. They gave me a decent credit limit back when noone else would even give me an unsecured card. Unlimited 5% back and a good credit limit to actually buy some expensive items. A route to persue, if buying on Amazon is an option (again, no idea. I'm a refurbished Thinkpad and Chromebook sort of guy). 

And I would second (third? fourth?) the Freedom suggestion. They also gave me a higher limit than I expected. I think the Freedom/Discover combo is a a great idea for most, then it's just a matter of finding the right non-bonus everyday spend card for yourself (I like the Citi DC, but don't have experience with other 1.5-2.0% cards). With 5/24 in mind, Chase is always a great place to start early. Though you got denied for the CFU, the Freedom I think is a little easier to get. Just check the prequal site.

[tacpoly]

The CITI credit cards give extended warranty protection (an additional 2 years iirc), so that's something to consider for your computer purchase.

And live frugally. Potential earnings might be high, but not everyone makes it out. Those med school loans are huge.