Mentoring a credit newbie .... thoughts on my initial plan please

[BullsEye10]

I am mentoring a new attorney in my office, and credit came up in a discussion.

He is what I would otherwise call a very bright kid (28 years old to my 39), but he is woefully ignorant regarding credit.  He does not have any credit cards at all, just his debit card.

He wanted my advice, and so I was thinking that considering where he is financially, and his score that we pulled from MyFico this morning, that he should start by applying for the Chase Freedom Card and an AMEX charge card.

His vital stats are as follows:

• 28 years old
• $70,000 annual salary; 15% bonus + company car (includes ins. and gas)
• 681 Equifax score
• No glaring black marks on his report
• $200,000.00 in student debt from his joint JD / MBA (huge number, I know).
• No other debt

Anyone have any disagreement with the plan for Chase Freedom & an AMEX charge card?  Should he shoot for the AMEX Gold Rewards card to start building rewards points?  Also, would he stand a chance of getting the Sapphire (not preferred, but the regular) in case he decided he would rather have reward points than cash back?

Thanks in advance for the advice.

[09Lexie]

When you say, 'no glaring black marks' does that mean there are some baddies? Chase generally requires some revolving cr history 6-12 mos Who does he bank with?

[Revelate]

I'd take the shot at the two targets you've suggested in his case though it is a good point Chase "likes" revolving history specifically.  I don't think a Sapphire is in the cards right now.

If those miss, have him pick up a quality secured card from BOFA or similar and a random/whatever card for tradeline farming, then in six months get an Amex charge card, at the one year mark a Chase card.

Not certain the Gold makes much sense, Green earns the same points and same rewards, if he has reimbursable expenses (30Kish spend) to justify a Gold PR that would be handy, but I'm not sure the Gold offers any advantage other than being a different color.

[BullsEye10]

He banks with Wells Fargo (was thinking of moving him to Chase so they can see his income and substantial savings before he applies)

He had 1 (maybe 2) thirty day late payments from over 18 months ago on student loans.

No credit history but a decent income (70K + 10.5K bonus + car and associated expenses)

What do you think?  What should we aim  for?  Start him at Capital One and then shoot for Chase and AMEX in 6 months?  

Thanks

[09Lexie]

If you are moving him to Chase - I would still consider that an iffy chance unless you are talking substantial savings and then have him apply in branch. BOA has a nice secured cc that graduates

[zeusta20]

If he banks with WF, he can get the secured card. He may be able to get approved for the unsecured card too since he already has a relationship with the bank.

[beenjammin]

Make him an AU on one of your cards After a couple months he'll be able to get whatever he wants.

[FocusedAndDetermined]

I agree with comments others have made regarding Chase.   With score and other listed info, I would suggest Discover It card for starters.  It might not be as "glamorous" as the others, but chances for approval are probably greater.  After 6-12 mos, he can go for Chase.

[improvingmycredit]

Hey BullsEye10!
Very difficult situation to be in having a good income and no revolving credit. The unfortunate thing is, he will have to likely start out with a low limit card for the next 6 months but after that, if the card is managed well, then he should be good to go:
My recommendation:
Cap One NewComers or Cash Rewards card AF version. Best bet is NewComers. Probably end up with $750 limit or so.
Get the card. Use it leaving 1-3% reporting each months for next 6 months. His FICO will jump a good 15-pts. or higher just getting a revolving card showing on the report.
After that-
Amex Charger of choice
Discover It
Stay away from Chase - they really like to see 1 year revolve history though it's not unheard of to get a card with less.
At one year mark with CapOne- app what ever he wants.
JMHA.

After thought: Discover It is a good bet too but not a for sure- with one revolver showing in 6 months- it's almost a sure thing.

[LS2982]

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@BullsEye10 wrote:

I am mentoring a new attorney in my office, and credit came up in a discussion.

He is what I would otherwise call a very bright kid (28 years old to my 39), but he is woefully ignorant regarding credit.  He does not have any credit cards at all, just his debit card.

He wanted my advice, and so I was thinking that considering where he is financially, and his score that we pulled from MyFico this morning, that he should start by applying for the Chase Freedom Card and an AMEX charge card.

His vital stats are as follows:

• 28 years old
• $70,000 annual salary; 15% bonus + company car (includes ins. and gas)
• 681 Equifax score
• No glaring black marks on his report
• $200,000.00 in student debt from his joint JD / MBA (huge number, I know).
• No other debt

Anyone have any disagreement with the plan for Chase Freedom & an AMEX charge card?  Should he shoot for the AMEX Gold Rewards card to start building rewards points?  Also, would he stand a chance of getting the Sapphire (not preferred, but the regular) in case he decided he would rather have reward points than cash back?

Thanks in advance for the advice.

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I think he would be a good candidate for the PRG. Freedom is a good look too.