WEIRD UPDATE?: Discover IT Student or Citi Forward Student?

[Anonymous]

I'm looking for some advice on which card I should apply for next. Right now I have a Best Buy store card (joint account, $3600 CL) and an Amex PRG (opened 2 weeks ago, not yet reporting). I'm currently a full-time student but graduating this Spring (with a 2.3 year loan history, deferred but "pays as agreed") and so I would imagine a student card would be my best option right now.

I'd like to establish some credit history (and decent limits) so that I can apply for the CSP by the end of the year (I'll be moving to Korea and want a prime card with no FTF). If it helps, I have no baddies and a 701 EQ (FAKO), 733 EX (FAKO), 694 CK.

Any advice? Suggestions? Strategies?

UPDATE: I ended up applying for the Discover IT Student card and was instantly declined. I called the backdoor recon number (thanks myFICO!) and spoke with a very pleasant and very patient rep who informed me there was nothing he could do. Huh? Discover doesn't recon?

Here's where it gets weird (or at least puzzling). The reasons for the rejection were High Utilization and Too Many Recent Inquiries. Both of which I explained should not be issues! I currently have 2% utilization on my BB store card and my student loan payments are deferred until I graduate. As for the inquiries, I only have two on my TU report (which is what they pulled). The Transunion FICO score given was 669. 

After some time the rep suggested that I try and reapply in about a week for the regular (non-student) version of the IT card. He said that the student card is evaluated based on a very different risk matrix and he was confident that I would be more favorably considered based on the standard card's underwriting criteria (which he admitted was counter-intuitive given my thin file and full-time student status). Apparently two inquiries for the student card is considered too risky! He said he couldn't go into detail but he strongly recommended that I reapply next week or later. 

Any thoughts? Should I burn another HP in a week or two for another shot? Or should I just go take a cold shower and stick my head in the garden for 6 months?

[slippy84]

Not sure how much credit history Chase is looking for with the CSP but I would guess a year or longer. Also, they are looking for you to have another card with over a 5k limit from what I've read. I think that the CSP by the end of the year might be a stretch TBH

Citi tends to give higher initial CLs than Discover. They both have the potential to grow. Discover seems to be better about auto CLIs. They both will let you request a CLI after 6 months

[PokemonMaster]

I have both a Citi card and a Discover card. Both have yet to give me a CLI but Discover gave me a better starting limit. Discover has better CSRs than Citi. With their respective programs it depends on what you prefer. To me the IT program is far better than the points program on the Forward card. I am happy with my Dividend card, but I prefer my Discover card. It's hard to advise you on which card since we don't know your spending habits. Forwards program is cool if you buy a lot from Amazon and eat out a lot. I just always felt points programs limited me in what I could get, so I was never a fan of them.

[Anonymous]

Thanks for the advice. I do spend a lot at restaurants and Amazon, so the Forward bonuses would be great. However, I'm leaning towards the IT as there is no FTF. Since CSP might be a stretch (at least by year's end) I suppose the IT would be my best bet for a card that I can use in South Korea (as well as other foreign countries). I'm just hoping I'll meet the underwriting requirements for the IT (I was assuming, perhaps incorrectly, that Forward might be easier to get).

Should I wait to apply until I've established some history with my BB store card and Amex (therefore having a better approval chance + higher initial CL) or  apply now in order to establish a relationship with Discover and go for a CLI in 6 months?

[slippy84]

Personally, I think you would be approved for either card if you apply for the student version. What is your income BTW?

Also, for Citi, they tend to give higher initial limits on their student cards if you are an AU on an established Citi account. My first card was a Citi card with a limit of $4k even though I applied for the student version. I was an AU on my dad's Citi card. I don't suppose you have a family member who has a long, good history with Citi that could add you on?

[Anonymous]

My income is ~15k. Also, I'm pretty sure my brother has a Citi card and might be willing to add as an AU. However, I'm thinking now that I would only go with the Forward if I was declined for IT. I checked and the Forward charges 3% on foreign transactions, so I'd be losing out on the benefits after I leave the country. Does anyone know if the bonus categories on IT count in foreign countries, e.g. restaurants?

[SnackTrader]

Just to add to the discussion here, others have complained in the past about the acceptance rate of the Discover network overseas despite the 0% FTF. So, it is quite likely that you would have to use another card in some circumstances while traveling abroad anyway. Also, the Forward will help you to put extra money towards your student loans with its TY point structure.

[Anonymous]

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@SnackTrader wrote:
Just to add to the discussion here, others have complained in the past about the acceptance rate of the Discover network overseas despite the 0% FTF. So, it is quite likely that you would have to use another card in some circumstances while traveling abroad anyway. Also, the Forward will help you to put extra money towards your student loans with its TY point structure.

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Damn! I knew there was a non-metallic reason I wanted the CSP! How does the Forward help with student loans? I haven't heard anything about this. Do I have to repay my loans using the card? If so, that wouldn't work since I can't use a CC for mine (e-checks only). 

[OptimasPrime]

OP if you're looking for a 0 forex student card, bofa has a travel rewards card for students. I haven't really looked at the student version in a great deal of detail, but I think it comes with all of the same benefits you get from the regular travel rewards card. 1.5 pts/dollar and no af. I would think that the underwriting is comparable to that of the student it or forward.

Another thing to consider is that to my knowledge, emv technology is not available on CSP which may cause some acceptance issues outside of the us. EMV comes standard on the bofa card I mentioned.

[09Lexie]

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@Anonymous wrote:

I'm looking for some advice on which card I should apply for next. Right now I have a Best Buy store card (joint account, $3600 CL) and an Amex PRG (opened 2 weeks ago, not yet reporting). I'm currently a full-time student but graduating this Spring (with a 2.3 year loan history, deferred but "pays as agreed") and so I would imagine a student card would be my best option right now.

I'd like to establish some credit history (and decent limits) so that I can apply for the CSP by the end of the year (I'll be moving to Korea and want a prime card with no FTF). If it helps, I have no baddies and a 701 EQ (FAKO), 733 EX (FAKO), 694 CK.

Any advice? Suggestions? Strategies?

UPDATE: I ended up applying for the Discover IT Student card and was instantly declined. I called the backdoor recon number (thanks myFICO!) and spoke with a very pleasant and very patient rep who informed me there was nothing he could do. Huh? Discover doesn't recon?

Here's where it gets weird (or at least puzzling). The reasons for the rejection were High Utilization and Too Many Recent Inquiries. Both of which I explained should not be issues! I currently have 2% utilization on my BB store card and my student loan payments are deferred until I graduate. As for the inquiries, I only have two on my TU report (which is what they pulled). The Transunion FICO score given was 669. 

After some time the rep suggested that I try and reapply in about a week for the regular (non-student) version of the IT card. He said that the student card is evaluated based on a very different risk matrix and he was confident that I would be more favorably considered based on the standard card's underwriting criteria (which he admitted was counter-intuitive given my thin file and full-time student status). Apparently two inquiries for the student card is considered too risky! He said he couldn't go into detail but he strongly recommended that I reapply next week or later. 

Any thoughts? Should I burn another HP in a week or two for another shot? Or should I just go take a cold shower and stick my head in the garden for 6 months?

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Assuming that Discover is correct; have you pulled your TU report ? Are you confident your util is reporting accurately?  Student loans should not count if they are reporting deferred.  I always thought the student card was easier to obtain but I could be wrong.  

The denial seems odd to me and worth another call.