topic Re: Choosing a First Credit Card in Credit Cards

Choosing a First Credit Card

CreditSage — Tue, 02 Oct 2018 02:59:47 GMT

My friend is a 24 year old college graduate making roughly $70k and has never had a credit card and is looking to choose his first. He has BB&T with several thousand dollars as well as Suncoast Credit Union with several thousand dollars (both long time established banking relationships).

Here are some general thoughts or questions:

-Should he skip a secured card and go right for unsecured?

-Should he try with his banking institutions and possibly get more favorable outcome? I've heard of first time credit card applicants getting 15k lines of credit with credit unions (example my friend for 15K with NFCU for his first ever card).

-Should be pull his annual free credit report to see if anything is on there?

Notes:

-He makes big purchases frequently such as flight school (assuming chas back would be best for this type of purchase).

-He travels frquently so rewards on airefar would be positive.

-Everyday purchases like gas and groceries are his most used expense category and heaviest weighted in choosing a rewards card.

-As this is his first card it will likely be open for a very long time (i.e. sign up bonuses are not a priority)

Re: Choosing a First Credit Card

HeavenOhio — Tue, 02 Oct 2018 03:51:53 GMT

Does he have anything on his credit report, such as loans?

I'd start with the Credit Union. Before applying, I'd talk to a rep in person or over the phone.

Re: Choosing a First Credit Card

CreditSage — Tue, 02 Oct 2018 03:54:50 GMT

No previous loans.

Re: Choosing a First Credit Card

pinkandgrey — Tue, 02 Oct 2018 11:28:55 GMT

I'd try for an unsecured from one of his banks/credit unions. I imagine it would work out in his favor, especially with his income. I would have him go talk to a customer service rep in person rather than online.

Re: Choosing a First Credit Card

Anonymous — Tue, 02 Oct 2018 11:55:29 GMT

Agreed with pinkandgrey - with no loans or CCs, it’s likely he has no FICO score. Going with the CU with which he has an established relationship and a history of demonstrated income may help him get approved. Cold-apping for cards without a score will result in denials and wasted HPs. Getting his reports from annualcreditreport.com and his scores (if he has any) from creditchecktotal.com would be a good first move before talking to the CU.

Re: Choosing a First Credit Card

Anonymous — Tue, 02 Oct 2018 15:34:39 GMT

I had my first credit card Capital One Platinum Unsecured at 18 with no credit history whatsoever. They gave me SL $500. I'd say go straight to unsecured especially with his income.

For Travel Rewards I have my Bank of America and Capital One Quicksilver (upgraded from the platinum) and both has 1.5% and no AF.

BofA also has a SUB.

For Cash Back, CITI DC is the best with flat rate of 2% with no AF.

Groceries - AMEX BCE or BCP (if you're okay with AF) and Restaurants - Uber Visa.