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New Visitor
Posts: 3
Registered: ‎02-05-2013
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What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards....

[ Edited ]

Hi everyone,

I just discovered this forum a few days ago, and I've been enjoying all the information I'm finding. I'm looking for a credit card that gives me travel rewards, and, of course, the Chase Sapphire Preferred is appealing.  However, I'm a bit nervous to apply for it, as I don't have a high income...Just wanted to see what you all think.... Here are some details:

 

I'm 24 years old, recent college grad & have about $34,000 in student loans...I pay them all on time. (though some of them I don't need to make payments on due to the "Income Based Repayment Plan," which has me set at $0.00 minimum...not sure if that negatively impacts a score...)

 

Experian/VantageScore: 778

Equifax: 727

Credit Length: 6 years, 5 months 

I have one credit card (I've had it 5 1/2 years). Credit limit: $2500

 

1 inquiry from Time Warner Cable (didn't even realize they were gonna do that....)

No negatives/late payments, etc.

 

My income is only about $20000-24,000/year (I work only part time).

 

Do you think I have shot at the CSP? What other ones would you recommend? I want to travel!

 

Thanks

V

Contributor
Posts: 108
Registered: ‎08-13-2008
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

I think it unlikely that your income will support a 5k limit.  Also it does not appear you have any revolving credit, and chase will want to see how you manage revolving credit before they hand over a 5k limit card.  additionally, Paying 95 bucks a year for a credit card with your income is counter productive.  I value a UR point @1.6 cents, so you'd have to spend a lot relative to your income just to break even.  You will not get more out of it than you put in.  Try for freedom it has decent rewards and if you need a no forex card try a credit union Or cap1 venture card( no fee version).  Even with freedom expect a toy limit of 1k at best.

Age 29
AU- United+ Visa 33k, *97. GM MasterCard 15k, *95.
Individual- PenFed Plat Rew 7k, *08. Amex Blue 6.7k, *12. Hilton Amex 5.5k, *12. Chase Sapphire 15k, *12. U.S. Bank Cash+ 12.3k, *12. Barclays Priceline.com Rewards Visa 11k, *13. Citi DoubleCash (PC'd in *14) 7k, *13. Club Carlson Premier 9k, *13.
Valued Contributor
Posts: 2,300
Registered: ‎01-22-2012
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

[ Edited ]

Forget about whether or not you'll be approved.

 

The first thing you need to understand is that with an income that low, you really should avoid any AF cards. You simply won't be able to spend enough to offset the AF, muchless generate any decent rewards.

 

Focus on a no-AF card instead, or find a rewards card with the 1st year AF waived and then cancel/PC it after 12 months.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
New Visitor
Posts: 3
Registered: ‎02-05-2013
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

Thanks for the input! I forgot to mention that yes, I have revolving credit... I've had a credit card for about 5 1/2 years. Credit limit is at $2500.

New Visitor
Posts: 3
Registered: ‎02-05-2013
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

Good advice. Thanks :-) Although, the CSP does wave the AF for the first year..... does opening and then closing an account after a year negatively affect your credit score?

Blogger
Posts: 2,876
Registered: ‎02-02-2012
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.


CreditScholar wrote:

Forget about whether or not you'll be approved.

 

The first thing you need to understand is that with an income that low, you really should avoid any AF cards. You simply won't be able to spend enough to offset the AF, muchless generate any decent rewards.

 

Focus on a no-AF card instead, or find a rewards card with the 1st year AF waived and then cancel/PC it after 12 months.


I second this.

Why, because I'm a low profile spender as well.

My income is over 24,000 but I still avoid most AF cards unless the benefit of the card outweighs the cost.

 

Example: Chase Hyatt VISA has a $75 fee. I get a free room worth more than that.

 

But I don't overextend myself into a card like a BCP. Quite simply my spending doesn't go that high to merit it.

You are 24, thus you have more than enough time to hit some inquiries to see what you can and cannot get.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Regular Contributor
Posts: 220
Registered: ‎08-10-2012
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

Slim to none since you do not have an existing 5LK credit card limit which is CSP minimum and also too much SL debt

Citi Thank You Premier Visa Signature-$9K, Citi Thank You Preferred Vis Signature-$8.3K, Citi AA Signature- 8.5K, Citi Simplicity 9.2K, Citi Diamond-6.1K, Lowes-$10K, Chase Sapphire Preferred- $ 5K, AMEX BCE $14.5K, AMEX Starwood Preferred $15K, ,AMEX Everyday-$5K, Fidelity Amex-$10K, US Bank 123 rewards Kroger-$17K, Penfed Platinum Rewards Visa Signature-$30K, Amex Delta-$10K, Barclay Arrival Plus- $10K, Penfed Travel Rewards Amex-$10K, Bank of America Cash Rewards- $14K
Senior Contributor
Posts: 6,260
Registered: ‎08-16-2012
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

Forget what everyone is saying here;
I think you'll get approved.

You have the score!
While your dti is high, your student loans are acceptable to a lender while in deferment.

Also, since you ONLY have a $2500 card, Chase..imo..would be willing to grant you a $5000 limit bf they may feel you have room to grow in that way.

Also, you could recon if necessary! AND you could downgrade to the reg CS if you need to avoid an AF.

If I were you, I'd app for BCE... It's a great rewards card w no AF and 0% for a year. I'm 23 and still in school with $36k in SL and have many responsibly used credit accounts.

If you decide to app, let us know. Also, if you need...I'm sure we can give you some recon tips ;-)
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Contributor
Posts: 236
Registered: ‎01-20-2013
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

[ Edited ]

youngandcreditwrthy wrote:
Forget what everyone is saying here;
I think you'll get approved.

You have the score!
While your dti is high, your student loans are acceptable to a lender while in deferment.

Also, since you ONLY have a $2500 card, Chase..imo..would be willing to grant you a $5000 limit bf they may feel you have room to grow in that way.

Also, you could recon if necessary! AND you could downgrade to the reg CS if you need to avoid an AF.

If I were you, I'd app for BCE... It's a great rewards card w no AF and 0% for a year. I'm 23 and still in school with $36k in SL and have many responsibly used credit accounts.

If you decide to app, let us know. Also, if you need...I'm sure we can give you some recon tips ;-)


+1! I definitely think you have a chance, although I think you won't be instantly approved, and will have to go through recon. Also don't give up once recon says no, keep trying different recon reps!

 

Also do you have any property or any other savings or maybe any expected wage/salary increases that could put you at 30K annual income? If so, then that would also help!

 

Lastly, get the CSP and then before the year is up, call to cancel and in my experience Chase either lowers the annual fee for that year or sometimes even waives the whole thing. If you don't have luck with the annual fee waiving, just downgrade to the Chase Sapphire (regular one) with no annual fee.

 

Try not to close the account, and instead leave it active so you can build additional revolving credit.

 

 

Good luck! Let us know after you've applied!

Capital One 2006--$5,000 ||| AMEX Macy's 2008--$2,300 ||| Kohl's 2009-- $1,000 ||| JCP 2010-- $1,000 ||| Walmart Discover 2010-- $5,000 ||| Sears 2011 -- $3,600 ||| Sears 2011 -- $3,500 ||| Chase Freedom 2012--$7,500 ||| Discover IT 2013 -- $4,000
||| Chase Sapphire Preferred 2013 -- $10,000

SCORES: EQ FICO: 787, EX FAKO: 801, TU FICO: 790 (Lender Pull)
Senior Contributor
Posts: 6,260
Registered: ‎08-16-2012
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Re: What are my chances w/lower income? Looking at Chase Sapphire Preferred, or other Rewards cards.

Thanks for agreeing Bobert!! Lol

I mean, vbianqui's stats are great for Chase approval!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
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