Questions from a relative noob

[G19OD]

Hi y'all,

I have had a BoA Student Visa with a $700 limit for about 4 years now. I recently obtained my Bachelor's and have been working as an accountant for about 2 months now at my so-called "first real job". My income isn't the greatest (~33k), but I like my job as the hours are flexible as I prepare for the CPA exam.

My first order of business was to get a used car since I had quite the beater during college. I was approved through BECU about a month ago for a $9,5xx auto loan @ 3.48 for 4 years ($212/month).

I just used MyFico's trial offer to get one of my actual credit scores (knowlingly not the best seeing as all 3 scores are different) - but my Equifax is 772.

I obviously have a few options, but I want to get going more in the credit world. I have been reading on these boards and what not and would like some advice on what I should go after.

I am interested in a rewards card, with a decent limit (2.5k - 3k? Ideally 5k. Reasonable?), primarily for travel/gas/restaurants (in order). I want the most prestigious card I can get with my circumstances! I would prefer no AF. I would like to begin using this card daily, and pay off monthly.

• Any chance at the Chase Sapphire?

• Chase Freedom?

• Call BoA and do a CLI or PC for some type of reward card?

• Go with AMEX and hope one day I am one of their very priveleged members?

Basically I am looking for recommendations and advice. Thanks!

[injustifiiable]

You can probably start with a Zync since you're wanting to get in with AMEX....or possibly a Gold with the first year AF waived and the option to downgrade if you want.

The CU you got your auto loan with? Do they offer credit cards? That might be one your first places to start since you've got a relationship with them already.

With those scores, you can have your pick of the litter. Definitely check with BoA to see if they can PC you to one of their rewards cards...the 1-2-3 Cash Back rewards is a popular one and one they are pushing pretty hard.

Cheers!

[improvingmycredit]

Hey G19OD!  Welcome to the forums!

Based on the information you've provided with regardss to your experience with BOA and your current score with EQ, I'd say you are pretty much set for really any card you might apply.  The problem might lie with the starting limit you are seeking.  Most major lenders like to see experience with a limit you are looking for before they will grant you a limit similar with their cards.    However, because you have only one CC tradeline showing, it is my suspision that your first application could net you a good starting limit if you app with the right company first.

My suggestion would be to:

App for a Amex Charge Card first:  PR Gold  - this card has an annual fee but it is waived the first year so you can decide based on your experiences with it if you want to keep it after a year or PC to another less expensive Charge Card

App then for the Amex Credit card of your choice based on your expected travel/spending needs

I'd stay away from the CSP because they are looking for 5K experience before they tend to approve for this card however the regular Sapphire may be an option for you.

I think you are a good candidate for the Freedom right now also.

My advice:  App for 3 of the cards you want now.  Take all the hits at once for the inqs.  Let the cards grow with you for the next year or 2 and then re-evaluate your needs again with regards to credit.

Good luck and let us know the out comes.  

[-Cain-]

Check the AmEx site for any offers they may have for you (so long as you are not opted out). Discover is another site you can check for any offers.

[OhioCPA]

If your CU has a reward card I would start there. CU's typically will give higher limits than the major banks, especially for someone without any high limit cards already. If it is less than 30 days since your CU approved your car loan they might base your credit card application on the report they pulled for the car loan. Thus saving a HP.

Since you have been with them for four years I would then talk to BOA about a PC to a reward card. The PC might come with a CLI with or without a HP.

Your credit profile might not be right for a Sapphire at this point. Perhaps the Freedom will be in your reach. My son just graduated from college and started his first job this week. He is applying for the Freedom card at the end of the month. He already has Citi and Discover student cards, one at $4K and the other at $2.5K.  

[G19OD]

Thank you for all the advice and responses. Keep them coming!

Is AMEX something to be wary of due to their worldwide acceptance? It is my understanding that they are accepted in many less areas than VISA/MC/Discover. Also, AMEX is primarily AF driven, correct?

[-Cain-]

AmEx charge cards have AFs. Their Credit Cards come in both varieties - AF & non-AF.

[FrugalRican]

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@G19OD wrote:

Thank you for all the advice and responses. Keep them coming!

Is AMEX something to be wary of due to their worldwide acceptance? It is my understanding that they are accepted in many less areas than VISA/MC/Discover. Also, AMEX is primarily AF driven, correct?

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I'd say that VISA/MC is definitely accepted everywhere. AMEX/Discover are accepted in less places. I typically find that places that accept Discover, won't accept AMEX, and vice versa. Sometimes, they do accept both... like my dentist. GO figure.

[improvingmycredit]

I typically use my Amex for everything. So far, the issue with acceptance has been in smaller mom & pop joints. Most places that I visit take the card. I always carry a back up MC/VISA just invade though. Over-seas hasn't been an issue for me either.

[Anonymous]

pulling your teeth and sucking your credit dry?