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11-24-2012 04:44 AM
11-24-2012 10:41 AM - edited 11-24-2012 10:44 AM
I'm a newbie to the forums and to credit. I am looking to build my credit history, but that is proving much easier said than done. The more I learn about how income factors into your ability to get credit, the more discouraged I become. So, I was really surprised when I saw that I was pre-approved for a Discover card. (Yes, I am pretty sure it was a legit pre approval. I went to the card builder, entered all of my info, and then it said "Congratulations, you have been pre-approved!") Considering my income and credit history, the card looks pretty good. 13.99% apr. 0% for 6 mo. Should I apply? I'm not even sure if it's worth my time. I know that the soft pull doesn't show what your income is. Unfortunately, right now I only get about $10,000/year in disability payments. I am hoping that after I have more time to recover, I will be able to work/ go to school again. But, that should take a couple more years. I need a credit card soon because I will be moving into a new apartment and most of the moving companies in my area require a credit card.
A little more got my credit history:
3 yrs paying off student loans. Never missed a payment.
4k total loans
Low living expenses.
So, is it worth my time and the hard pull?
You have a good file...but the issue might be with the income. $10,000 might be a little too low for a card approval. In addition, you have a very good loan/installment history but a lack of revolving history might also be an issue. If you can report any other income (compensation, child support, alimony, etc) to pass the $10,000-$14,000 income bracket you should apply. Discover has very good customer service and a good recon department. Good Luck and keep us posted!
11-24-2012 11:56 AM
11-24-2012 12:26 PM - edited 11-24-2012 12:27 PM
Thanks! So, do you think I should try my luck and apply for the pre-approved card?
I only have one hard inquiry this year. It's from this month due to the apartment application, so nothing too bad.
I got a VS offer with a $500 limit. Didn't accept it because I don't really shop there, but it made me feel a little bit better because at least somebody wants to give me a little credit. That's a good sign, right?
If you only have 1 inquiry I say go for it. The worst they can say is no and you stay exactly where you are with no drop in score or a very small drop. If they decline you (and decline a recon) go for a secured card.
11-24-2012 02:06 PM
Discover has very lax standards. The Discover More was the first non-secured card I had which I applied for after receiving multiple pre-approved offers for the card in the mail. If you decide to apply, use this link: https://www.discovercard.com/cardmembersvcs/acqs/app/display?pageFileId=cbb100&sc=KB8M&CMPGNID=gan_d... to get $100 bonus after $500 spending.