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Trying to make the right move for my next CC. Advice needed!

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corsascuderia
New Member

Trying to make the right move for my next CC. Advice needed!

So I've had a Bank of America BankAmericard Visa for a little over a year now, and being that it is my first credit card, I was only approved for a paltry $600 CL. I don't like having to go through the hassle of preloading my card to make big purchases (I sometimes have to make big ones for work that are reimbursed), so I end up making them on my debit card and earning no rewards. This year alone I've missed out on $25k or so worth of purchases that I could be earning points on. At this point, I'm pretty sure that I could get a decent CLI on my BoA card, but I would honestly rather use the hard pull to apply for a card that offers better rewards. I am primarily considering either the AMEX Delta Skymiles or hopefully the AMEX PRG. The Chase freedom is an option, too. 

Here's my current situation:

 

TU: 708

EQ: 699

EX: 713

- 19 years old

- $60k income

- Savings are somewhere between 10-15k

- No derogs, bankruptcies or debt

- Student loan balance of $1750

- 1 hard pull from AMEX gold in July 2013—got denied due to low AAoA

- 1 revolving acct: BoA Bank Americard, $600 CL, 1 year old

- I'm a Delta Skymiles member for what it's worth. I think I have 30k or so miles on my account.

 

At this point I think the biggest negative is how thin my file is. I'd like to get another card to help build it up a little but I don't want to waste a hard pull on getting denied. I've always wanted an AMEX, but if it's not a reality right now I can wait a few years. I always pay my bill in full every month—save for %5—so APR isn't really a huge concern. Given my situation, what would you guys recommend? Thanks in advance!

 

Message 1 of 14
13 REPLIES 13
milkshakes
Regular Contributor

Re: Trying to make the right move for my next CC. Advice needed!

Hey Corsa,

 

you actually have an awesome profile, especially for a 19 year old! great that youre starting out so young and already have a good grip of things -- it'll allow you to build your AAoA pretty early.

 

What type of expenses are you usually putting on your card for work ($25k)? Travel (airline, hotels, etc.), business expenses, business lunches, etc?

When you fly, do you typically fly Delta?

 

if you're already a Delta Skymiles member, want Amex, and want a travel card, the Delta Skymiles card is probably your best bet. I've seen people in the 700's and even in the 660's or so get approved for it. Naturally, the Delta card is best utilized if you're buying a lot of Delta flights (which will tend to happen if your airport is a Delta hub) and less useful otherwise. Keep this in mind whenever you're considering a card with an AF ($95 is pretty steep).

 

The other option you mentioned is the Chase Freedom, which will allow you to build your relationship with Chase and eventually go for a Chase Sapphire Preferred. CSP isn't that great with Delta in particular (can't transfer directly to Delta), but it's incredibly flexible otherwise. Plus, you can earn all the points on your Chase Freedom in the meantime and transfer those points to your Chase Sapphire Preferred, so in the long-run you'd be pulling rewards points, not just travel points.

 

I think either card is within reach, and definitely worth going to the reconsideration line if you get denied. Regardless of what you decide to apply for, you could probably ask for a credit line increase on your BofA anyway. Just request the CLI after you apply for whatever card you want.

      
          12k                    10k                     5k                 12.5k (AU)                 6k                   NPSL                   12k
Message 2 of 14
user5387
Valued Contributor

Re: Trying to make the right move for my next CC. Advice needed!

I would find some way to separate out the business expenses, perhaps using a business CC or an Amex charge card.

 

Message 3 of 14
milkshakes
Regular Contributor

Re: Trying to make the right move for my next CC. Advice needed!


@user5387 wrote:

I would find some way to separate out the business expenses, perhaps using a business CC or an Amex charge card.

 


I thought about this, but all of the business CC's and charge cards have pretty big annual fees. additionally, unless you file as a sole proprietor for your business card, it won't really help boost your credit score, now would it? It seems that right now OP is pretty interested in building his credit portfolio.

      
          12k                    10k                     5k                 12.5k (AU)                 6k                   NPSL                   12k
Message 4 of 14
corsascuderia
New Member

Re: Trying to make the right move for my next CC. Advice needed!


@milkshakes wrote:

What type of expenses are you usually putting on your card for work ($25k)? Travel (airline, hotels, etc.), business expenses, business lunches, etc?

When you fly, do you typically fly Delta?

 


 

My expenses for work are pretty much what you listed. Most often it's travel or things like hardware/components. I work for a really tiny company so we don't get individual credit cards, and rather than bothering the boss for his credit card, I prefer just to pay myself and then get a reimbursement. I would say I fly Delta more so than other airlines, but my airport isn't a Delta hub, so I usually just go with whatever is cheapest. Honestly, I'm primarily interested in the Delta AMEX because I've heard that it's the easiest AMEX to get approved for, and therefore the best way to build a relationship with AMEX and hopefully boost my file a little. I would definitely rather have the PRG since it's a charge card with no PSL, but I don't really want to risk wasting another hard pull if I don't have a good shot at getting it—especially because for some reason experian doesn't seem to have all of my data. If I can't get the PRG I'm probably leaning towards the Freedom, but I really would like to get my foot in the door with AMEX.




@user5387 wrote:

I would find some way to separate out the business expenses, perhaps using a business CC or an Amex charge card.

 




I actually don't own the business or anything, so I don't really have control over what I use for work expenses unless I use my boss's CC. I would love to have a company credit card, but my boss unfortunately doesn't want to deal with giving one to everybody. I don't mind fronting expenses as long as I get reimbursed and the associated rewards. 

 

EDIT: I don't know if this is significant at all but I actually got an email from AMEX inviting me to apply for the PRG Card. There wasn't an offer code or anything associated with the email (just a button that says 'Apply Now') so I think that this was maybe just a blast email that they sent out to people in their database and probably has nothing to do with me being prescreened or anything. I figured it was worth mentioning though. 

Message 5 of 14
milkshakes
Regular Contributor

Re: Trying to make the right move for my next CC. Advice needed!

Charge cards are typically easier to get than revolver (credit) cards. This is because there's "less risk involved" since you're required to pay in full every month.

In the same vein, charge cards won't improve your credit score as much, since you're hardly actually "managing credit." So this will be good in building for AAoA, but won't improve your utilization.

The Delta card will probably be on par with the PRG in terms of approval likelihood. So the decision is up to you. If you don't get accepted (which I think you have a good shot at getting accepted), I think you'd be served well by calling their reconsideration line.

 

user5387 was suggesting that it might be a good idea to have one card for business expenses and one card for personal expenses. the card for business expenses didn't necessarily have to be a business card, but separating your expenses could help you keep track of which is yours and which isnt (if that's an issue).

 

no problem about not getting a company business card. it's actually better that you dont so you get the points for yourself! :]

 

maybe the mail offer was a sign!

      
          12k                    10k                     5k                 12.5k (AU)                 6k                   NPSL                   12k
Message 6 of 14
user5387
Valued Contributor

Re: Trying to make the right move for my next CC. Advice needed!

I don't know whether a business CC can be used for reimbursed business expenses, if one doesn't have their own business.

 

My guess is not, but you could call some of the big issuers like Amex and Chase and see if they know the answer.

 

Beyond that, I'm inclined to think that another go at an Amex charge card would make sense.  Charge cards are NPSL, meaning that Amex can start you off very low with a $500 internal spending limit, and then grow the limit rapidly.

 

Getting a regular card like Freedom could burn you unless the CL is high enough to accommodate your travel and so on.

 

Message 7 of 14
grinlikechelsea
Established Contributor

Re: Trying to make the right move for my next CC. Advice needed!

First, let me say you're doing a fantastic job managing your credit!

 

Since you seem to have a large amount of reimbursable purchases, I would suggest the AmEx PRG because it racks up MR points fairly quickly at your level of spend and it will build a relationship with AmEx (which in turn will allow you to app for a revolver later down the road and probably get approved).

 

I think you also have a great shot at obtaining the Freedom if you are interested. I have that card and I love it. Smiley Happy

Message 8 of 14
NikoD
Regular Contributor

Re: Trying to make the right move for my next CC. Advice needed!


 

EDIT: I don't know if this is significant at all but I actually got an email from AMEX inviting me to apply for the PRG Card. There wasn't an offer code or anything associated with the email (just a button that says 'Apply Now') so I think that this was maybe just a blast email that they sent out to people in their database and probably has nothing to do with me being prescreened or anything. I figured it was worth mentioning though. 


Are you sure that's legit? Do CCCs actually send emails with links to apply? If I got an unsolicited email with a link to apply for a CC I'd be suspicious it was a scam that's attempting to get my SS# and other info in order to steal my identity.

Message 9 of 14
corsascuderia
New Member

Re: Trying to make the right move for my next CC. Advice needed!


@NikoD wrote:

 


@user5387 wrote:

 

EDIT: I don't know if this is significant at all but I actually got an email from AMEX inviting me to apply for the PRG Card. There wasn't an offer code or anything associated with the email (just a button that says 'Apply Now') so I think that this was maybe just a blast email that they sent out to people in their database and probably has nothing to do with me being prescreened or anything. I figured it was worth mentioning though. 


Are you sure that's legit? Do CCCs actually send emails with links to apply? If I got an unsolicited email with a link to apply for a CC I'd be suspicious it was a scam that's attempting to get my SS# and other info in order to steal my identity.


It's entirely possitble that it could be a phishing scam. It came from AmericanExpress@email.americanexpress.com, and linked to what appears to be the secure AMEX site. I feel as though it's just some blast email advertisement, though. 

Message 10 of 14
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