topic Re: Is it time for a new Credit Card? in Credit Cards

Is it time for a new Credit Card?

Anonymous — Thu, 01 May 2008 21:28:34 GMT

I am trying to advise a relative on if they should get a new credit card or not.

She is about to turn 20 years old and for the last year she has only had one credit card (MTV Student Visa Card from Citi) and has always paid in full each month.

In thinking of the future and I know part of a good Fico score is length of credit history so would it be wise for her to now apply for a MasterCard or should she just keep the one Visa all through college?

Thanks

Message Edited by Texcalibur on 05-01-2008 02:28 PM

Re: Is it time for a new Credit Card?

Anonymous — Thu, 01 May 2008 21:29:33 GMT

I would have her bite the bullet and get three or four credit cards now. Insane? No...gaming the FICO system. Here's why:

Right now she has one account. Sooner or later, she's going to want another credit account...a card, a car, a house. Five years from now, her average age of accounts will be 5. If she gets a second account, that's slashed to 2.5.

On the other hand, if she already has five revolving accounts, her average age will be 5 in 5 years, and getting another account will only lower it to 4.25 or so.

I encourage young people to get a card, work their score over 700, and then lock in three or four more cards.

Note that having a credit card and using a credit card are two different things.

Re: Is it time for a new Credit Card?

Anonymous — Thu, 01 May 2008 21:51:10 GMT

Any suggestions on what cards are good to get for a 20 year old college student.

She already has the MTV Student Visa from Citi.

Thanks

Re: Is it time for a new Credit Card?

Anonymous — Thu, 01 May 2008 22:16:33 GMT

I just found out that she just got a new car and is financing $5,000.

Will this hurt or help when applying for a new credit card?

Thanks

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 11:38:46 GMT

I know there are many different types of credit cards (rewards, low APR, Balance Transfer, etc...) but what banks are the best to have your credit cards with?

I ask this because I was looking at the Geico MasterCard that was offered by Merrick Bank and I think it is now offered by New Millenium Bank and I read post where people didn't like these banks at all.

Thanks

Re: Is it time for a new Credit Card?

haulingthescoreup — Fri, 02 May 2008 11:50:02 GMT

Do you know what her scores are now, after the car loan?

Total history is now what, 2 years? and the car loan drops her average to 1. (This is important for recommending CC companies.)

With the combination of low income due to student status and thin, short file, she might be stuck with student cards for another couple of years. These are fine, but it would be a good idea to find out for each card if it can be switched over to a non-student card after a while, but keep the history (opening date). No big deal to pick up an inq for a card upgrade; she just wouldn't want to have a new opening date.

Also, it can be tougher to upgrade an "affinity" card (one with the name of a store, etc. on it), so if she can get a straight student Discover, student AmEx Blue, etc., that should give her more options in the future.

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 12:00:14 GMT

If she just got the car last week will it already be on her credit report if she applies for a new card now?

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 12:00:49 GMT

Did the banks finally stop handing out "free money" to college kids.

I got my most prime best card with almost no income in college, and the rest when we only made 25k a year. With 5k limits on most of them.

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 19:04:57 GMT

@Anonymous wrote:
If she just got the car last week will it already be on her credit report if she applies for a new card now?

Does anyone know when this new car purchase will show up on her report?

Would it be better to apply for a new credit card before or after the new car shows up on the CR?

Message Edited by Texcalibur on 05-02-2008 12:04 PM

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 19:15:06 GMT

@Anonymous wrote:
@Anonymous wrote:
If she just got the car last week will it already be on her credit report if she applies for a new card now?

Does anyone know when this new car purchase will show up on her report?

Would it be better to apply for a new credit card before or after the new car shows up on the CR?

Message Edited by Texcalibur on 05-02-2008 12:04 PM

It depends on who she purchased the car through. I bought one with financing through USAA on the 23rd last month and it still has yet to hit my reports.

I would expect the car loan may drop her score's a bit.

Discover offer's a student card. See if she would be interested in it.

ETA: Chase and BofA offer student cards. Prime banks would be a plus.

Message Edited by stef37 on 05-02-2008 12:15 PM

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 19:42:57 GMT

I was looking at...

Discover Open Road Card and/or the Blue Cash from American Express.

If you apply for the Blue Cash and you do not qualify will they offer you the regular Blue card instead or do you have to reapply for that one?

Thanks

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 19:52:13 GMT

Here are the 3 best cards.

1.AMEX BLUE CASH

2.CHASE FREEDOM

3.DISCOVER MOTIVA

Message Edited by ashabbir1 on 05-02-2008 12:52 PM

Re: Is it time for a new Credit Card?

Anonymous — Fri, 02 May 2008 19:54:39 GMT

How difficult is it to get those cards?

Re: Is it time for a new Credit Card?

haulingthescoreup — Fri, 02 May 2008 22:27:26 GMT

Again, what are her scores, especially on EX?

And if she's getting an auto loan through USAA, she should absolutely try to get their MC to start with. They have both a student option and the regular. Both my daughters got the straight MC's, even though they were in college.

I would argue with the Blue Cash, unless she can put her tuition on it or something. (Highly doubtful with an AmEx.) The rewards are pathetic until you have spent $6500, when they finally kick in, but only until 12 months are up, and then you start all over again. The Blue (or Blue Sky if she hopes to travel) would be better. There is a student version of the Blue if her income won't support a regular Blue. 700 on EX would be fine for the regular Blue; don't know about the student. Check out www.whogavemecredit.com.

Re: Is it time for a new Credit Card?

techgirl — Fri, 02 May 2008 22:46:59 GMT

I think your local Federal Credit Union would be the best bet...

Re: Is it time for a new Credit Card?

Anonymous — Sat, 03 May 2008 02:23:47 GMT

I am a student too and the citi mtvU was my first card. I now have 4 cards. Dont apply for Chase or AMEX student cards. They are worst at student credit cards. Apply for Discover Student card. Guaranteed $1000. Then apply for one of those alumni association student cards from Bank of America. They give minimum 1000-2000. All these are with limited history. HTH.

Re: Is it time for a new Credit Card?

Anonymous — Sun, 04 May 2008 18:20:38 GMT

@haulingthescoreup wrote:
Again, what are her scores, especially on EX?

I don't know her EX or TU score but her Equifax score is 684 and the car is not on the report yet.

Re: Is it time for a new Credit Card?

Anonymous — Mon, 05 May 2008 10:42:39 GMT

Well she got declined for the American Express Blue (684 EQ)

What do we do now?

Do we reapply for the Student American Express or Gold Delta?

Do we just call them and ask to be considered for the student or Gold Delta or do we have to reapply and have another inquiry hit her report?

Thanks

Re: Is it time for a new Credit Card?

haulingthescoreup — Mon, 05 May 2008 10:45:00 GMT

@Anonymous wrote:
Well she got declined for the American Express Blue (684 EQ)

What do we do now?

Do we reapply for the Student American Express or Gold Delta?

Do we just call them and ask to be considered for the student or Gold Delta or do we have to reapply and have another inquiry hit her report?

Thanks

Sorry to hear that. Her score looks decent, so I'm guessing it was an income issue or thin, short file.

Did they give her the reason for the decline?

Re: Is it time for a new Credit Card?

Anonymous — Mon, 05 May 2008 10:56:59 GMT

It said to get the reason you had to agree to get information electronically and I was not sure if once you did that does that mean they will only send you emails from now on and not any regular mail so we did not choose to see the reason yet.