topic Re: Help credit card application for a student in Credit Cards

Help credit card application for a student

Anonymous — Sun, 22 Jan 2012 06:15:14 GMT

I've just recently really started being aware of my credit and tracking it. A quick back ground first, I'm a student and because of that I am unemployed. I rent my apartment. The credit in my history consists of 2 school loans which have been paid off, and one credit card that I've had for almost 4 years. I pulled my Transunion and Equifax reports and both fall into the 770's range. The majority of the reason why my score is so high is because my parents have helped me pay off school loans and bills, but I'm trying to be more responsible for myself.

So that brings me to here, I want to apply for a cash back credit card, specifically the Capital One Cash Credit Card for my every day purchases.. Everything I've seen tells me I should be able to be accepted for this card, being that my credit falls into the excellent range, and Capital Ones one system tells me that I pre qualify for this card. I wont need to be carrying a balance from month to month or making transfers, just for month expenses that I will pay off in full. Being that I am new to credit card applications, I am slightly apprehensive answering questions on the form such as " monthly rent" and "Annual Income". My rent is about 300 a month but that and my living expenses are paid for by my parents on the agreement that when I finish school I will pay them back, rather than going through a lender.

My question is do you think its wise for me to apply for this card now, or should I wait for a more opportune time when I have an income to report, and if I am safe in applying for this card, how should I answer the rent/income questions? I don't want it to appear as though I'm spending 300 a month and brining in nothing, when thats not really the case.

Any help will be really appreciated.

Re: Help credit card application for a student

Guava — Sun, 22 Jan 2012 06:35:49 GMT

Are you under 21? If you are, you must have your parents to co-sign a card with you.

Re: Help credit card application for a student

Anonymous — Sun, 22 Jan 2012 07:23:17 GMT

I am 22 currently.

Re: Help credit card application for a student

Guava — Sun, 22 Jan 2012 07:47:47 GMT

Back in 2008, I was able to get approved for the Citi dividend student card with no personal income, I put in just the annual household income. I don't know if that'd still work now. Having your parents cosign with you is also an option.

Re: Help credit card application for a student

Anonymous — Sun, 22 Jan 2012 08:57:39 GMT

If you don't have income, I don't think you'll be able to qualify for that card - even with good credit history, they still want you being able to pay them back. Getting money from your parents won't count as income (unless you're paying taxes on it), and student loans aren't income either.

Also, if you view the disclosures for the card, one of the items is:

Am I Eligible For This Offer?

To be eligible for this offer, your annual income must be greater than your annual rent/mortgage payments and you must meet the conditions listed in the enclosed Additional Disclosures.

Which leads me to believe you won't be able to get the card without a cosigner. But then again, even their Journey card (their actual student card) states the same. And I remember reading other posts here where people were denied for cards due to having low income - having no income would have to be even worse.

Re: Help credit card application for a student

bichonmom — Sun, 22 Jan 2012 11:01:34 GMT

One suggestion is to have your parents make you an authorized user on one or more of their CCs. This will help give you a credit history and improve your already good score. Make sure the CCs have been open a while and have low to zero utilization.

Personally, I wouldn't apply for the cap one card. There are many reasons, but aside from those, it's doubtful that you'd be approved since they're going to want a history in all likelihood.

Someone here posted recently that they included the money they received from their parents for their living and educational expenses as income and were approved for a cc (don't recall which one). I believe there's a section of the app where it says you don't need to include income from other sources, but can if you choose.

I'd look at other cc options, like maybe your local CU, especially if you have a relationship with them. I'm not sure how Amex Zync is with no credit history.

I'd really suggest that you see if your parents will make you an AU on a couple of their cards. Then wait a month for it to report on your CR. Pull your CR to be sure. Then I'd app for a CC, and you'll likely be approved for a good card.