topic Re: Any cards I should consider applying for before my loans hit? in Credit Cards

Any cards I should consider applying for before my loans hit?

elegia — Wed, 11 Jun 2014 19:18:31 GMT

Hi everyone! I am starting grad school this fall and will most likely be taking out both Stafford and PLUS student loans every year for the next several years starting at the end of this month, as well as going through the standard credit checks for housing and such, so I'm just wondering if it's a good idea to cram in any more credit card applications before those inquiries and debt hit my file and my income plummets. The Stafford loans will not need a credit check, but the PLUS loans will, however I'm told that I should be fine as long as I don't have any negative factors like collections or late payments - same goes for housing/utilities - which I don't. I'm figuring that getting new credit over the next few years will be difficult, so now would be the time if ever.

I'm in my mid-20s and planning on getting married in the next few years, so I'd like to have a healthy credit file and score by the time I apply for a home mortgage down the road. My credit history is fairly thin with only three accounts - all revolving credit cards - but I'm hoping the student loans will help build a better mix at the end of the day. I don't really have the energy to juggle a lot of credit cards like many of you do (so impressed, though!), and ideally I am aiming to have no more than 5 (maybe 6) cards total in my life. Currently, most of my expenses are the standard food and groceries, supplies and sundries, books and entertainment, clothing, and utilities, so I feel that I wouldn't really benefit from a travel or hotel card at the moment, but I am planning on adding one eventually once I have a more stable career (at least, I am optimistically/arrogantly presuming that later in life I will have a fabulous and glamorous life filled with family vacations and business conferences, etc... right?).

My current situation and accounts are:

Citi Forward ($8100)

-opened in 2011

-5% on restaurants, fast food, Amazon, bookstores, entertainment

Amex BCP ($14400)

-opened in 2013

-6% on groceries

-3% on gas and department stores

Discover It ($1500 - slightly puzzled by the low limit, actually)

- just got a few days ago

-5% rotating categories, first $1500 per quarter

-plan to use mostly for the extensive 5-15% online shopping rewards list and for the free monthly FICO score

AAoA: 1 year 2 months

Inquiries:

- EX: 3 (getting 1 removed but will take a while)

- EQ: 2 (^ same deal)

- TU: 0

My EX FICO score from a few days ago before I got the Discover card (I was denied first due to an error with the website allowing applications for an expired offer, so I got my score then - I am told that I can get this inquiry removed, though) was 746 (Credit Sesame fail, haha... they have my FAKO at 831!), although I expect it took a decent hit with the additional inquiry from the second Discover application.

So that's my situation. First off, would it even be a good idea to add another application now, since my credit score is still reasonably good but I do have a newly opened account and a couple of inquiries? I'm also worried that I'm pushing my income to credit ratio with that big Amex limit (perhaps why my Discover limit is so low?). Next, are there any cards you would recommend given my credit plans and situation? I've been pretty happy with the rewards I've been getting and am not the type to fuss over a 1-2% difference generally (ex. BCP 3% on gas vs. 5% Sallie Mae), but there are some gaps that wouldn't hurt to fill if possible. However, I don't want to add a whole extra card for one rewards category on a minor monthly or once-a-year expense that would only result in a couple dollars of savings per month - not worth the hassle for me, personally. I've been looking at the US Bank Cash+ (if it's true that you can apply over the phone) since it might come in handy for cell phone bills and the occasional IKEA run, but worried that I wouldn't qualify or that it might not even be worth it. I'm considering getting a Target Red debit card since it's SP only, but haven't made up my mind. I've also heard that getting a store card would help with my mix of credit, but is it worth it? I think I'd end up with better or equal cash back from my current cards from most of the stores I frequent, and I am not a diehard loyalist to any one store in particular, so I am dubious as to whether it would be more trouble than it's worth, especially considering that I'd like to keep a reasonably low number of cards in my wallet.

So all in all, are there any standout cards for which I would probably qualify that I should definitely seek to add now, or should I just keep chugging with the ones I have now and hope that new cards better suited for my needs will pop up several years from now? Taking all suggestions and advice for the present and the future, and much appreciated!

Re: Any cards I should consider applying for before my loans hit?

Revelate — Wed, 11 Jun 2014 19:44:13 GMT

Didn't see in your post where you suggested what spending habits you have which aren't covered.

Seems like the Forward/BCP combination is pretty self-sufficient for any student type expenses (other than like you state the extra 2% on gas); about the only thing I'd recomend would be something like a Cap 1 Quicksilver or maybe a Fidelity Amex to try to get your default spending at higher than 1%. A Sallie Mae sort of makes sense both as a Forward backup, and the fact your TU report is looking awfully lonely.

A store card as we understand it doesn't really factor into mix of credit: I know I didn't get any points when I added a store card to my already established file. Generally it's revolving and installment, and mortgage may or may not be split out on that. Unless the rewards make sense on a store card, never get one is my opinion and stick with the national bank and/or Credit Union cards.

That's probably what your best path is actually, go get an account at a credit union or two, and if you don't have any installment history, consider doing a silly secured loan or something for future FICO goodness as it really doesn't sound like beyond the somewhat upgraded default spender there's much you actually need.

Re: Any cards I should consider applying for before my loans hit?

elegia — Wed, 11 Jun 2014 20:04:45 GMT

@Revelate wrote:
Didn't see in your post where you suggested what spending habits you have which aren't covered.

Seems like the Forward/BCP combination is pretty self-sufficient for any student type expenses (other than like you state the extra 2% on gas); about the only thing I'd recomend would be something like a Cap 1 Quicksilver or maybe a Fidelity Amex to try to get your default spending at higher than 1%. A Sallie Mae sort of makes sense both as a Forward backup, and the fact your TU report is looking awfully lonely.

I don't have anything that covers basic supplies and drugstore expenses, but don't recall any card that does that well as I'm not a Costco member. *shrugs* Also utilities like electricity, cable, water, phone.

The Forward backup is a good point - can anyone have a good guess as to whether my old 5x rewards system will be taken away? Citi has now stopped offering that card completely for new members, although I along with other existing cardholders was grandfathered in and as best I can tell, I am still getting 5x points on almost all dining and Amazon purchases, even with Amazon 3rd party sellers. I'll never close the account since it's my oldest and has no AF, but I'll be quite devastated if the rewards system is replaced or taken away.

Re: Any cards I should consider applying for before my loans hit?

Creditaddict — Wed, 11 Jun 2014 20:53:15 GMT

I would do Sallie Mae because they will hit TU only and you have no hits there and it will probably be useful for school and books and amazon, etc.

I would get Fidelity Amex and have that be the go to card for anything that is not category for the 2% AND it's a nice way to start investment funds without really doing anything and BofA seems to be very giving these days and wouldn't be hard to push to compete or even better your amex limit!

and last but not least I would consider a chase card or capital one to round out the card portfolio.

I wouldn't worry about your credit to income ratio... that will play out per lender a lot more than all cards combined (especially right now if you carry very little balances)

I also wouldn't worry about adding 2-4 INQ's and 2-3 accounts right before you head to garden for a year or so while in school besides the moving stuff.

Re: Any cards I should consider applying for before my loans hit?

Themanwhocan — Wed, 11 Jun 2014 21:11:19 GMT

@elegia wrote:
@Revelate wrote:
Didn't see in your post where you suggested what spending habits you have which aren't covered.

Seems like the Forward/BCP combination is pretty self-sufficient for any student type expenses (other than like you state the extra 2% on gas); about the only thing I'd recomend would be something like a Cap 1 Quicksilver or maybe a Fidelity Amex to try to get your default spending at higher than 1%. A Sallie Mae sort of makes sense both as a Forward backup, and the fact your TU report is looking awfully lonely.
I don't have anything that covers basic supplies and drugstore expenses, but don't recall any card that does that well as I'm not a Costco member. *shrugs* Also utilities like electricity, cable, water, phone.

The Forward backup is a good point - can anyone have a good guess as to whether my old 5x rewards system will be taken away? Citi has now stopped offering that card completely for new members, although I along with other existing cardholders was grandfathered in and as best I can tell, I am still getting 5x points on almost all dining and Amazon purchases, even with Amazon 3rd party sellers. I'll never close the account since it's my oldest and has no AF, but I'll be quite devastated if the rewards system is replaced or taken away.

If you are in Huntington's banking area, the Voice card is good for drugstores. Or utilities. you choose.

if you are in HI, CA, NV, OR, WA then the Marukai JCB card is good:

Re: Any cards I should consider applying for before my loans hit?

elegia — Thu, 12 Jun 2014 16:59:29 GMT

@Themanwhocan wrote:

If you are in Huntington's banking area, the Voice card is good for drugstores. Or utilities. you choose.

if you are in HI, CA, NV, OR, WA then the Marukai JCB card is good:

Alas I am not in any of those places, but thanks for the suggestions anyway!

Re: Any cards I should consider applying for before my loans hit?

Anonymous — Thu, 12 Jun 2014 17:20:47 GMT

For groceries, gas and drug stores, you can get 5% with the Amex Blue Cash after you spend (on anything) $6.5K a year. This would replace the BCP.

Re: Any cards I should consider applying for before my loans hit?

elegia — Thu, 12 Jun 2014 19:07:05 GMT

@Creditaddict wrote:
I would do Sallie Mae because they will hit TU only and you have no hits there and it will probably be useful for school and books and amazon, etc.
I would get Fidelity Amex and have that be the go to card for anything that is not category for the 2% AND it's a nice way to start investment funds without really doing anything and BofA seems to be very giving these days and wouldn't be hard to push to compete or even better your amex limit!
and last but not least I would consider a chase card or capital one to round out the card portfolio.

So Sallie Mae over US Bank Cash+ as a backup for the Forward? The TU-only pull certainly is tempting, but I do probably spend less on books per year than I do on restaurants and fast food. Does the Sallie Mae card count Amazon Kindle and marketplace purchases?

I've been wanting that Fidelity Amex card a lot, actually, but I haven't looked into it too much because I don't have an account with them and don't know much about opening one and what that involves, etc. Would it even be possible to open an IRA or such AND apply for the credit card between now and the end of June? Do they typically pull one bureau in particular or does it vary? Also, what happens if you end up having to close your Fidelity savings account?

Re: Any cards I should consider applying for before my loans hit?

Creditaddict — Thu, 12 Jun 2014 19:15:37 GMT

Super easy, just go open a fidelity cash management account (takes 2 minutes online) AND you don't even need that before opening credit card... My friend had his of deputy at least 2 months before he opened a cash management account and I helped him set up auto transfer of the rewards each time he had enough on card

Re: Any cards I should consider applying for before my loans hit?

elegia — Thu, 12 Jun 2014 21:34:23 GMT

@Creditaddict wrote:
Super easy, just go open a fidelity cash management account (takes 2 minutes online) AND you don't even need that before opening credit card... My friend had his of deputy at least 2 months before he opened a cash management account and I helped him set up auto transfer of the rewards each time he had enough on card

Well, that's good to know! Thanks!

Re: Any cards I should consider applying for before my loans hit?

Kenny — Thu, 12 Jun 2014 22:26:37 GMT

Fidelity Amex sounds like an excellent suggestion for you. The Sallie Mae, while it's a good suggestion for most, is really a duplicate of a better card that you have. Yes, they may nerf the Forward for the grandfathered in, but they haven't yet so can't deal with the what ifs of the world. OP, if you felt like it might be something that would be good for you then go for it as it's a transunion like they said and you have zero. An alternate approach could be the Arrival + for the sign up bonus. Yes, it would only be redeemable for travel for the 2% but that's not a terrible, terrible thing.

What needs do you anticipate that you might need for yourself? If cash flow is a topic that is interesting to you then maybe try for the better balance rewards card. If you keep a balance on it each month (say even 1 dollar), you will get a $25 dollar bonus as a statement credit each quarter. (If you have a current BoA checking account you can get it deposited there each quarter and get a $30 dollar bonus for being a member.) It's certainly not bringing home the bacon so to speak, but you can go buy some bacon with it! lol

Re: Any cards I should consider applying for before my loans hit?

elegia — Fri, 13 Jun 2014 02:40:56 GMT

@KennyRS wrote:
Fidelity Amex sounds like an excellent suggestion for you. The Sallie Mae, while it's a good suggestion for most, is really a duplicate of a better card that you have. Yes, they may nerf the Forward for the grandfathered in, but they haven't yet so can't deal with the what ifs of the world. OP, if you felt like it might be something that would be good for you then go for it as it's a transunion like they said and you have zero. An alternate approach could be the Arrival + for the sign up bonus. Yes, it would only be redeemable for travel for the 2% but that's not a terrible, terrible thing.

What needs do you anticipate that you might need for yourself? If cash flow is a topic that is interesting to you then maybe try for the better balance rewards card. If you keep a balance on it each month (say even 1 dollar), you will get a $25 dollar bonus as a statement credit each quarter. (If you have a current BoA checking account you can get it deposited there each quarter and get a $30 dollar bonus for being a member.) It's certainly not bringing home the bacon so to speak, but you can go buy some bacon with it! lol

I think I will look into Fidelity seriously. I'm still a bit hesitant about maintaining an account, though - what happens to my credit card account if and when I ever need to empty and/or close my Fidelity IRA/investment/etc. account? Obviously, I wouldn't plan on this happening any time soon at all, but I am nervous since it seems like a slightly bigger committment than most other cards.

Interesting, I keep getting those BoA Better Balance Rewards offers (I already have two BoA checking accounts) but have never given them a second look until now. I'm very responsible and diligent about my payments, so it seems like an easy $120/year with a simple Netflix+auto pay combo. After browsing reviews and opinions on this card, though, the general consensus seems to be that this is too good to last and that BoA might very well end up changing the terms and conditions? Hm.

Anyone know who they pull (both cards) and what kind of credit is generally needed for approval?

Re: Any cards I should consider applying for before my loans hit?

Kenny — Fri, 13 Jun 2014 02:47:12 GMT

@elegia wrote:
@KennyRS wrote:
Fidelity Amex sounds like an excellent suggestion for you. The Sallie Mae, while it's a good suggestion for most, is really a duplicate of a better card that you have. Yes, they may nerf the Forward for the grandfathered in, but they haven't yet so can't deal with the what ifs of the world. OP, if you felt like it might be something that would be good for you then go for it as it's a transunion like they said and you have zero. An alternate approach could be the Arrival + for the sign up bonus. Yes, it would only be redeemable for travel for the 2% but that's not a terrible, terrible thing.

What needs do you anticipate that you might need for yourself? If cash flow is a topic that is interesting to you then maybe try for the better balance rewards card. If you keep a balance on it each month (say even 1 dollar), you will get a $25 dollar bonus as a statement credit each quarter. (If you have a current BoA checking account you can get it deposited there each quarter and get a $30 dollar bonus for being a member.) It's certainly not bringing home the bacon so to speak, but you can go buy some bacon with it! lol
I think I will look into Fidelity seriously. I'm still a bit hesitant about maintaining an account, though - what happens to my credit card account if and when I ever need to empty and/or close my Fidelity IRA/investment/etc. account? Obviously, I wouldn't plan on this happening any time soon at all, but I am nervous since it seems like a slightly bigger committment than most other cards.

Interesting, I keep getting those BoA Better Balance Rewards offers (I already have two BoA checking accounts) but have never given them a second look until now. I'm very responsible and diligent about my payments, so it seems like an easy $120/year with a simple Netflix+auto pay combo. After browsing reviews and opinions on this card, though, the general consensus seems to be that this is too good to last and that BoA might very well end up changing the terms and conditions? Hm.

Anyone know who they pull (both cards) and what kind of credit is generally needed for approval?

Absolutely nothing. I opened the cash management account with 0 and it still has 0 in it because I never opened the Fid Amex! lol

Never heard a whisper of a change.. in fact I product changed my other BofA CC to the BBR -- so I have 2.

BoA varies I think, I think they pulled EX and EQ for me but it might have just been EQ -- I'm not sure. I know they pull TU for CLI, though. Hopefully someone will be better able to speak on that front! Good luck with whatever you decide!

Re: Any cards I should consider applying for before my loans hit?

elegia — Fri, 13 Jun 2014 03:11:22 GMT

I just checked my BoA credit card offers page and it says that I'm pre-qualified for the Better Balances card with 0% intro APR for the first 12 months and 13.99% APR afterwards. Is this the same as pre-approval or just an invitation to apply for these particular terms and rates?

Re: Any cards I should consider applying for before my loans hit?

Kenny — Fri, 13 Jun 2014 21:29:30 GMT

@elegia wrote:
I just checked my BoA credit card offers page and it says that I'm pre-qualified for the Better Balances card with 0% intro APR for the first 12 months and 13.99% APR afterwards. Is this the same as pre-approval or just an invitation to apply for these particular terms and rates?

To me, I've had stronger approvals when I chose the pre-approval from BoA. With that said, there's never any one steadfast answer since your report/score changes in any given day/hour/minute. You should be able to get it, for sure.