topic Should I take the pre-qualified offer? in Credit Cards

Should I take the pre-qualified offer?

Anonymous — Fri, 12 Sep 2014 22:41:50 GMT

Discover sent me a pre-qualified offer for the Discover IT card. I just got the Student Chrome card with them about a month ago (already paid the first payment). I got the card to build a relationship with them for a student loan app for next August. Is it worth the inquiry on my thin file (1 year of history) to build a even better relationship with them? Or would that just hurt. Which would be better?

Thanks!

Re: Should I take the pre-qualified offer?

yfan — Fri, 12 Sep 2014 22:50:27 GMT

First question to ask yourself: are you satisfied with your Student Chrome card? If yes, and another card wouldn't serve any purpose, there is no point to getting it, inquiry or not, pre-qualificatioin or not.

If you are NOT satisfied with the Student Chrome card, call and ask them to product-change it to a regular Discover IT, since you have an offer. They should be able to see that offer in their system and PC you. If they say they can't do it in the first year, then wait it out. A PC has the advantage of no extra hard pulls, and it also doesn't damage your account age.

On the other hand, if you think you can really use both cards, go ahead and apply.

Re: Should I take the pre-qualified offer?

Anonymous — Fri, 12 Sep 2014 22:57:13 GMT

I am really satisfied with the chrome card. The cash back rewards are great. The IT card has revolving cashback offers at 5% so I would be able to use both. I really like Discover. I'm just worried at the student loan point of view. My 1 year history as of last month was because of a FED student loan so I technically just started learning about credit and how to apply at the right times. The reason I'm not in school this year is because of no cosigner and now I'm working two jobs trying to save up every penny. But if applying helps my file with them, that will be great! If not, then definitely not.

Re: Should I take the pre-qualified offer?

yfan — Fri, 12 Sep 2014 23:10:54 GMT

Well, if this is entirely about student loans, then my advice would be to sit it out. You would be able to get a loan either way, it's the interest rate at which you get the loan. I imagine that while they may give you some credit for your history with them, their decision will be predominantly based on your credit report. And with your thin file, adding another card now will hurt in the short run, which is what matters here.

What you may want to do, however, is get a Discover Cashback checking account. They have a promotion to give you $50 in cashback just for opening an account, plus you earn 10 cents for every bill you pay, check you write (that cashes) or debit card swipe that you make (not cash withdrawals, purchases). You can combine the cashback (redeemable at a minimum of $20) with your credit card cashback and get some really good value in gift cards.