topic Re: Apple Card made me an offer for a very low limit - do I take it? in Credit Card Applications

Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Thu, 08 Aug 2019 19:18:31 GMT

I just started my credit building journey last month with the Discover It secured card. I just turned 18 and have low income, and I opened the Discover account as soon as I could. I've got a $400 secured limit on that account. I'm a huge Apple enthusiast, so I applied for Apple Card today and they made me an offer with a $250 limit. A few things..

Yes, I know there are better cards than Apple Card. I applied because I am an Apple enthusiast and it would make a good keeper card
VS 3.0 simulation goes from 692 to 683 if I do it
YES! I know that VS 3.0 is "not accurate," but my FICO score hasn't even generated yet

Would you take it to get an unsecured account open this early? I'm not sure if it's better to have 2 accounts open this soon, one being unsecured, even though it's a low limit, or wait a year to apply for an unsecured card hoping to get a higher limit (but cut the average account age in half). I'm not sure what to do.

Re: Apple Card made me an offer for a very low limit - do I take it?

AverageJoesCredit — Thu, 08 Aug 2019 19:26:38 GMT

If you wanna be cool, take it. If not wait for a better offer and at least until you have true fico scores. Imo.

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Thu, 08 Aug 2019 19:28:44 GMT

If I were you, I would take the $250 unsecured limit Apple card. You can grow the limit as your credit profile grow. It would be hard for you to get an unsecured card without having a generating a FICO score anyway.

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Thu, 08 Aug 2019 19:29:02 GMT

Of course I "want it." It's a titanium card. I don't want to be stupid though. So you think it's better to wait and get an older average account age with a higher CL? Just trying to learn how this stuff is weighted with the score.

@AverageJoesCredit wrote:
If you wanna be cool, take it. If not wait for a better offer and at least until you have true fico scores. Imo.

Re: Apple Card made me an offer for a very low limit - do I take it?

BallBounces — Thu, 08 Aug 2019 19:56:32 GMT

Here's my take, and it truly is just an opinion:

That credit line is entirely appropriate for you or someone in your position. You are literally 18! Most 18 year olds don't have a credit card (and that's probably a good thing!) If a low income 18 year old wants a large credit line, that's probably a recipe for potential problems.

Other than secured cards, you would be looking at things like maybe the Student Discover card and Capital One platinum with it's $300 credit limit anyway. This card will be a great way to learn about responsible spending, paying in full, not carrying debt, tracking expenses, etc. Plus, it fits your lifestyle.

If I were in your shoes, I would take it, with the understand that it should grow as you demonstrate financial responsibility for years to come.

Kudos to you for giving this critical thought.

Re: Apple Card made me an offer for a very low limit - do I take it?

BallBounces — Thu, 08 Aug 2019 19:59:25 GMT

I meant to add, since you asked: Yes, having an additional unsecured line open will help you build a credit history. Doing it now starts that clock "sooner than later". How important that 6 month difference is would certainly be open to intrpretation.

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Thu, 08 Aug 2019 19:59:34 GMT

@BallBounces wrote:
Here's my take, and it truly is just an opinion:

That credit line is entirely appropriate for you or someone in your position. You are literally 18! Most 18 year olds don't have a credit card (and that's probably a good thing!) If a low income 18 year old wants a large credit line, that's probably a recipe for potential problems.

Other than secured cards, you would be looking at things like maybe the Student Discover card and Capital One platinum with it's $300 credit limit anyway. This card will be a great way to learn about responsible spending, paying in full, not carrying debt, tracking expenses, etc. Plus, it fits your lifestyle.

If I were in your shoes, I would take it, with the understand that it should grow as you demonstrate financial responsibility for years to come.

Kudos to you for giving this critical thought.

I really appreciate your input! I totally agree with you that it is an acceptable credit limit. I am just wanting to build my credit score over time and I know that higher limits = higher scores. With that being said, I am in it for the long haul and just want to make sure every decision I make is smart for my score. I've decided to take the offer

Re: Apple Card made me an offer for a very low limit - do I take it?

BallBounces — Thu, 08 Aug 2019 20:05:46 GMT

@Anonymous wrote:
@BallBounces wrote:
Here's my take, and it truly is just an opinion:

That credit line is entirely appropriate for you or someone in your position. You are literally 18! Most 18 year olds don't have a credit card (and that's probably a good thing!) If a low income 18 year old wants a large credit line, that's probably a recipe for potential problems.

Other than secured cards, you would be looking at things like maybe the Student Discover card and Capital One platinum with it's $300 credit limit anyway. This card will be a great way to learn about responsible spending, paying in full, not carrying debt, tracking expenses, etc. Plus, it fits your lifestyle.

If I were in your shoes, I would take it, with the understand that it should grow as you demonstrate financial responsibility for years to come.

Kudos to you for giving this critical thought.
I really appreciate your input! I totally agree with you that it is an acceptable credit limit. I am just wanting to build my credit score over time and I know that higher limits = higher scores. With that being said, I am in it for the long haul and just want to make sure every decision I make is smart for my score. I've decided to take the offer

Since the forum is so credit score and credit limit focused, we sometimes miss the forest for the trees. Healthy FICO scores expect responsible use, not higher limits. Something to be careful about from above: For responsible credit users, your scores (partially) drive the limits, not the other way around....

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Thu, 08 Aug 2019 20:06:07 GMT

@Anonymous wrote:
@BallBounces wrote:
Here's my take, and it truly is just an opinion:

That credit line is entirely appropriate for you or someone in your position. You are literally 18! Most 18 year olds don't have a credit card (and that's probably a good thing!) If a low income 18 year old wants a large credit line, that's probably a recipe for potential problems.

Other than secured cards, you would be looking at things like maybe the Student Discover card and Capital One platinum with it's $300 credit limit anyway. This card will be a great way to learn about responsible spending, paying in full, not carrying debt, tracking expenses, etc. Plus, it fits your lifestyle.

If I were in your shoes, I would take it, with the understand that it should grow as you demonstrate financial responsibility for years to come.

Kudos to you for giving this critical thought.
I really appreciate your input! I totally agree with you that it is an acceptable credit limit. I am just wanting to build my credit score over time and I know that higher limits = higher scores. With that being said, I am in it for the long haul and just want to make sure every decision I make is smart for my score. I've decided to take the offer

I don't know how you came to that conclusion but its definitely not true. Higher scores are a function of responsible credit use i.e. paying your balances on time and keeping your utilization low.

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Thu, 08 Aug 2019 20:08:25 GMT

@Anonymous wrote:
@Anonymous wrote:
@BallBounces wrote:
Here's my take, and it truly is just an opinion:

That credit line is entirely appropriate for you or someone in your position. You are literally 18! Most 18 year olds don't have a credit card (and that's probably a good thing!) If a low income 18 year old wants a large credit line, that's probably a recipe for potential problems.

Other than secured cards, you would be looking at things like maybe the Student Discover card and Capital One platinum with it's $300 credit limit anyway. This card will be a great way to learn about responsible spending, paying in full, not carrying debt, tracking expenses, etc. Plus, it fits your lifestyle.

If I were in your shoes, I would take it, with the understand that it should grow as you demonstrate financial responsibility for years to come.

Kudos to you for giving this critical thought.
I really appreciate your input! I totally agree with you that it is an acceptable credit limit. I am just wanting to build my credit score over time and I know that higher limits = higher scores. With that being said, I am in it for the long haul and just want to make sure every decision I make is smart for my score. I've decided to take the offer
I don't know how you came to that conclusion but its definitely not true. Higher scores are a function of responsible credit use i.e. paying your balances on time and keeping your utilization low.

Got it. I got that idea primarily from Creditwise in the Capital One app (where I have my checking and savings account). They have this scale on available credit limit, and the higher it is, the higher the scale is. I know those simulators and VS 3.0 scores are kind of a load of it though. I just accepted the offer, and I can already use Apple Card with Apple Pay! The titanium card will be coming in the next few days.

Re: Apple Card made me an offer for a very low limit - do I take it?

BallBounces — Thu, 08 Aug 2019 20:12:03 GMT

@drummerdude,

Keep hanging around the forums! Lots to learn, we wanna make sure you get the nuances right!

Re: Apple Card made me an offer for a very low limit - do I take it?

Rebuild2019 — Thu, 08 Aug 2019 20:22:55 GMT

@drummerdude Congratulations on your new Apple Card!! GL to you!

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Thu, 08 Aug 2019 20:29:46 GMT

Only way your FICO can go is up with either patience or trigger happy fingers, IMO. I don’t know how the Apple Card will grow, but I just took the offer for 6.5k at 23%. Good luck on your decision!

Re: Apple Card made me an offer for a very low limit - do I take it?

nuohlac — Fri, 09 Aug 2019 00:53:59 GMT

If I were you I would take it. You need credit lines to build credit. None one walks into the FICO game with great scores and huge limits at 18 years of age. It starts today manage it wisely and you will get it in due time.

Re: Apple Card made me an offer for a very low limit - do I take it?

kdm31091 — Fri, 09 Aug 2019 01:39:50 GMT

Honestly, I mean this in the nicest way, you're 18. Take the $250 limit, use it responsibly, it will probably grow just fine for you (obviously we don't really know how the Apple product will be with CLI at this point, but they should offer them eventually).

While the forums can offer great advice and input, the main thing to remember is that building credit (and becoming eligible for higher limits) takes time and payment history. There's no shortcut to it.

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Fri, 09 Aug 2019 02:03:36 GMT

@kdm31091 wrote:
Honestly, I mean this in the nicest way, you're 18. Take the $250 limit, use it responsibly, it will probably grow just fine for you (obviously we don't really know how the Apple product will be with CLI at this point, but they should offer them eventually).

While the forums can offer great advice and input, the main thing to remember is that building credit (and becoming eligible for higher limits) takes time and payment history. There's no shortcut to it.

That's exactly right! I accepted the offer and already made a small purchase since they give you the card number instantly. Will be paying off the balance as soon as it posts. Now it's time to nurture the Discover Card and Apple Card, get the Discover Card graduated, and continue the credit journey! I'm hoping to get the Citi Double Cash in July or August of 2020 as my next card, because that's when the Discover cashback match ends, meaning I won't get 2% back on stuff anymore.

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Fri, 09 Aug 2019 02:11:02 GMT

I have to agree with kdm because this will, in time, show future lenders that you can be trusted. Not only that but there are and will be some really great cards that you will qualify for that offer 0 apr for an introductory period and rewards, so you can buy new shiny Macs, iPhones etc with! By all means do what you think is best, but I would start building your profile early. :-)

Good luck!

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Fri, 09 Aug 2019 19:37:48 GMT

@Anonymous wrote:
I just started my credit building journey last month with the Discover It secured card. I just turned 18 and have low income, and I opened the Discover account as soon as I could. I've got a $400 secured limit on that account. I'm a huge Apple enthusiast, so I applied for Apple Card today and they made me an offer with a $250 limit. A few things..

Would you take it to get an unsecured account open this early? I'm not sure if it's better to have 2 accounts open this soon, one being unsecured, even though it's a low limit, or wait a year to apply for an unsecured card hoping to get a higher limit (but cut the average account age in half). I'm not sure what to do.

Normally I would say go for it but, not knowing how GS will handle CLI's at this point makes it a 50/50 proposition in taking the bait.

Re: Apple Card made me an offer for a very low limit - do I take it?

Anonymous — Sat, 10 Aug 2019 03:20:45 GMT

I took the offer. Already made a purchase with it and paid it! It's amazing how fast the transactions post. They post within a day, where my Discover It card takes 3-4 days to clear.

Re: Apple Card made me an offer for a very low limit - do I take it?

FinStar — Wed, 14 Aug 2019 02:50:28 GMT

Congrats on the approval OP.

Locking this thread as you have been approved. Feel free to start a new approval thread in the Approvals forum if you would like to do so.