topic Re: AMEX Blue Cash for unemployed student? in Credit Cards

AMEX Blue Cash for unemployed student?

Anonymous — Sun, 30 Jun 2013 23:54:55 GMT

Hi all,

Quite new to credit cards, so forgive me if this is a stupid question. I'm currently 21 y.o., a full-time student for one more year, and I have no income, just an unpaid internship. Checked my credit report for the first time today and everything seems to be in order. I've been an authorized user on two of my parents' cards for several years. Both of those have been paid off in full every month without fail, low utilization, all that good stuff. They show up on my credit report as expected. Credit Karma estimated my score as 688.

For the time being I am pretty much financially dependent on my parents. I also receive a sizeable scholarship and have moderate savings for someone my age. I want to build up my credit by using a credit card of my own, separate from my parents' accounts.

I've read good things about AMEX Blue Cash Everyday, and I have a pre-screened offer from them. It has the "opt-out" jargon which others have suggested means they did a "soft pull" on me. I fully understand that pre-screened is not a guarantee. But is there any chance they would approve me without an income, or would I be taking a wasted hit on my credit rating if I applied? On the application form they have an option for "Student - Unemployed", so maybe this is a situation they do anticipate?

Thanks for your help.

Re: AMEX Blue Cash for unemployed student?

09Lexie — Sun, 30 Jun 2013 23:58:33 GMT

Welcome to the forum! What information would you use for income? Scholarship? Do you include this income in your tax returns?

Re: AMEX Blue Cash for unemployed student?

Anonymous — Mon, 01 Jul 2013 00:07:13 GMT

Thanks for replying! I don't include the scholarship on my tax return; in fact, I didn't need to file a tax return last year because of my low income level. Do credit card companies ever consider scholarships as income? It was given to me by my school, not a third party, so it's essentially a "tuition discount" if you will -- I don't receive a check in the mail or anything.

Re: AMEX Blue Cash for unemployed student?

09Lexie — Mon, 01 Jul 2013 00:14:36 GMT

IMO, you do not have 'income' and if ever asked by Amex for tax returns you would have trouble complying. Others may differ but relying on parents is not considered income. If you had investments or something similar you would be fine.

Re: AMEX Blue Cash for unemployed student?

Anonymous — Mon, 01 Jul 2013 00:23:38 GMT

Thanks Lexie, that's pretty much what I thought. So if I truthfully put "income = $0", classify myself as a student, and declare the amount of my savings, might they consider me or would I be automatically rejected? This is probably painfully obvious to you, but bear with me

Re: AMEX Blue Cash for unemployed student?

09Lexie — Mon, 01 Jul 2013 00:26:22 GMT

They may not automatically decline you ( idk what's in your savings). Assuming the amount is low- you have to consider the lender is looking for repayment.

Re: AMEX Blue Cash for unemployed student?

broseph23 — Mon, 01 Jul 2013 05:02:07 GMT

IMO you'd definitely need a VERY sizeable savings with no income for them to approve you. But although you have no tradelines in your own name, I am skeptical that you'd be approved. I really think you'd have a better chance by having a student card or a secured card for at least six months before apping for the BCE, that is one of the toughest AMEX cards to get according to many threads here. Good luck in whatever you do though

Re: AMEX Blue Cash for unemployed student?

Creditaddict — Mon, 01 Jul 2013 05:43:43 GMT

Based on that you state you are pretty new to credit and that you are in a mid credit rating I don't think declined or not you would notice any ding from the INQ and since you have a pre-screened or what ever the offer is, I would say go for it... They have delt with no income/student/ and a million others things before... they have a wonderul little computer system that just when we start to think we understand it a little bit... they surprise us (sorry, talking plural for fico members or myself if no one agrees!)

Put student, list your scholarships if location or it or put savings if space for that... If they have questions, they will be in touch and ask for the info they need... otherwise you should have an answer in 30 seconds!

Re: AMEX Blue Cash for unemployed student?

PokemonMaster — Mon, 01 Jul 2013 14:57:41 GMT

Over the course of a year my parents end up giving me around 15k a year for certain expenditures. When I applied for my Amex I did put that down along with my being a student. I also put down how much is in my savings account since it asked. If Amex does F/R me I will explain everything to them and see if they would be willing to either do a conference call with my bank or allow me to fax them copies of my bank statements. I don't file taxes and I am listed as a dependent on my parents taxes. If Amex does shut me down oh well, at least my foot is in the door. I am pretty sure though that I can talk them into letting me send them bank statements of my checking account. But I don't see an F/R in my future since I have a revolver with them not a charge card.

Re: AMEX Blue Cash for unemployed student?

navigatethis12 — Mon, 01 Jul 2013 15:03:12 GMT

@PokemonMaster wrote:
Over the course of a year my parents end up giving me around 15k a year for certain expenditures. When I applied for my Amex I did put that down along with my being a student. I also put down how much is in my savings account since it asked. If Amex does F/R me I will explain everything to them and see if they would be willing to either do a conference call with my bank or allow me to fax them copies of my bank statements. I don't file taxes and I am listed as a dependent on my parents taxes. If Amex does shut me down oh well, at least my foot is in the door. I am pretty sure though that I can talk them into letting me send them bank statements of my checking account. But I don't see an F/R in my future since I have a revolver with them not a charge card.

If they ask for tax returns, you cannot pursuade them to ask for something else. It's either you give them what they ask for or they will complete the review without it and you will most likely not pass it. They do a financial review on their revolvers aswell, not just the charge cards.

Re: AMEX Blue Cash for unemployed student?

Creditaddict — Mon, 01 Jul 2013 15:29:04 GMT

@PokemonMaster wrote:
Over the course of a year my parents end up giving me around 15k a year for certain expenditures. When I applied for my Amex I did put that down along with my being a student. I also put down how much is in my savings account since it asked. If Amex does F/R me I will explain everything to them and see if they would be willing to either do a conference call with my bank or allow me to fax them copies of my bank statements. I don't file taxes and I am listed as a dependent on my parents taxes. If Amex does shut me down oh well, at least my foot is in the door. I am pretty sure though that I can talk them into letting me send them bank statements of my checking account. But I don't see an F/R in my future since I have a revolver with them not a charge card.

and that's what I would do if I was the OP... either way if they open it and at some point for some reason you get FR and they do close it... it still locks in 2013 as cardholder membership date so in future when you can prove taxes and income, you won't have any bad marks with amex and you will get your member since date again!

Re: AMEX Blue Cash for unemployed student?

GatorGuy — Mon, 01 Jul 2013 15:35:39 GMT

@Anonymous wrote:
Thanks for replying! I don't include the scholarship on my tax return; in fact, I didn't need to file a tax return last year because of my low income level. Do credit card companies ever consider scholarships as income? It was given to me by my school, not a third party, so it's essentially a "tuition discount" if you will -- I don't receive a check in the mail or anything.

Scholarships are not considered income because the CC company is only considering your ability to repay. Since the majority of scholarships typically goes towards tuition they aren't an accurate prediction of your ability to repay.

Re: AMEX Blue Cash for unemployed student?

PokemonMaster — Mon, 01 Jul 2013 15:54:06 GMT

@Creditaddict wrote:
@PokemonMaster wrote:
Over the course of a year my parents end up giving me around 15k a year for certain expenditures. When I applied for my Amex I did put that down along with my being a student. I also put down how much is in my savings account since it asked. If Amex does F/R me I will explain everything to them and see if they would be willing to either do a conference call with my bank or allow me to fax them copies of my bank statements. I don't file taxes and I am listed as a dependent on my parents taxes. If Amex does shut me down oh well, at least my foot is in the door. I am pretty sure though that I can talk them into letting me send them bank statements of my checking account. But I don't see an F/R in my future since I have a revolver with them not a charge card.
and that's what I would do if I was the OP... either way if they open it and at some point for some reason you get FR and they do close it... it still locks in 2013 as cardholder membership date so in future when you can prove taxes and income, you won't have any bad marks with amex and you will get your member since date again!

Exactly. For me it was all about the membership since date. I have other cards so Amex doesn't have my hands bound in this situation. If I do get an F/R and they won't take anything but tax documents I am SOL but at least I will still have my member since date.

Re: AMEX Blue Cash for unemployed student?

09Lexie — Mon, 01 Jul 2013 16:40:34 GMT

Amex will undoubtedly ask for tax returns on subsequent cc's.

Maybe by then verifiable income will not be an issue.

As previously stated, generally speaking scholarship funds is not considered income.

Re: AMEX Blue Cash for unemployed student?

Anonymous — Tue, 02 Jul 2013 16:56:03 GMT

Thanks everyone for your input! I'll consider all your advice carefully.

Re: AMEX Blue Cash for unemployed student?

Anonymous — Tue, 02 Jul 2013 17:04:16 GMT

jh12000, it's best you drop by a BofA / Wells Fargo / Citi / Chase branch in person.

They're sometimes able to work something out for you, especially if you and/or your parents are already customers with them.

The app process is going to be a little out of the "norm", but they can approve you based on assets (i.e. your balances in your account(s) with them), or it might just be a joint app under your parents name.