Chase card for college student with 720+ score?

[masscredit]

My girls started their credit journey in their own name a year ago. Their Mom and I each had have them as AUs on one of our cards. One got a student Discover and a Cap1 card. The other got a Student Discover but didn't have time to follow up with verification to get the Cap1 card. Last I knew their scores were in the mid-700s. Not bad for 18 year olds. Current income is about $35K per year. I'm thinking they should establish a long relationship with a good national bank like Chase. They can each open a checking and maybe a savings account. Don't know if they should wait a few months after that to apply for one of their cards or do it at the same time. Also don't know if Chase would approve them with a thin file. Anyone have any experience/advice for this? 

They each like to travel for travel rewards will be very helpful.  Only thing is they don't have heavy spending for big SUBs. 

[FicoMike0]

No personal relationship with chase, but I haven't heard that they favor existing clients. Amex, on the other hand seems to, they call you a member. In fact, amex only offers checking accounts to members.

In my area, Huntington, a regional bank, is known to favor customers. Then there are credit unions like nfcu, who's all about relationships.

As long as lobby service isn't required, I like amex. Many cards, checking, savings and personal loans available.

[dfwxjer]

Personally, I'd have them check out the Freedom line of cards and focus on cash back. $35k annual income isn't enough income to worry about travel cards since the spend won't amount to anything meaningful and an AF for a college student doesn't make sense. 

What is the purpose of them adding a 2nd and 3rd credit card to their profile at 18? What are they not getting from Cap1 and Discover with their current cards? Both are national banks that will grow with time, and should be able to handle an 18 year old's necessary spend. 

[coldfusion]

They align with the target demographic for the Chase Rise (straight-up 1.5% cashback, no minimum redemption) card, per Chase their best odds of approval come from opening a checking or savings account with a $250 deposit and then applying for the card.   In a year if they've met all the conditions they'll qualify for an automatic PC to a Freedom Unlimited.   They need to keep in mind that since they're under 21 they're supposed to only include earned income as wages, not household income, allowances, and so on. 

[Patient957]

I would recommend to anyone starting their credit journey to select high quality no-AF cards for their first 3 cards.  These should ideally be keeper cards that will form the base of their age metrics, without ever feeling pressure to cancel due to AFs.

Agree with @dfwxjer that Freedom line would be a good choice.  Whether they're in a good position for approval would depend on the age of their current cards, utilization and recent use.

Also agree with @coldfusion regarding Freedom Rise.

[masscredit]

Good info here! Thanks! I like the idea of the Chase Rise card that can can turn into a Freedom in the future -

You will be automatically evaluated each year to upgrade to your first Chase Freedom Unlimited® card when:

• Your Freedom Rise® account is open, and you've made a purchase on your Rise® card in the past 12 months
• You've made all payments on time to all financial lenders in the past 12 months, and none of your Chase accounts are suspended.

They can open a student checking account that has no fees and a $125 SUB.

They current cards are fine (Both have a Student Discover and one also has a Cap 1 Savor). I think it's beneficial to have at least 3 cards early to lay the foundation for a long AAoA and be able to grow they cards while they are in school. 

[dfwxjer]

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@masscredit wrote:

Good info here! Thanks! I like the idea of the Chase Rise card that can can turn into a Freedom in the future -

You will be automatically evaluated each year to upgrade to your first Chase Freedom Unlimited® card when:

• Your Freedom Rise® account is open, and you've made a purchase on your Rise® card in the past 12 months
• You've made all payments on time to all financial lenders in the past 12 months, and none of your Chase accounts are suspended.

They can open a student checking account that has no fees and a $125 SUB.

They current cards are fine (Both have a Student Discover and one also has a Cap 1 Savor). I think it's beneficial to have at least 3 cards early to lay the foundation for a long AAoA and be able to grow they cards while they are in school. 

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They certainly don't need 3 cards in college. Seems borderline reckless to have the temptation of 3 credit cards at 18. 

[masscredit]

@dfwxjer  They each make decent money and are very responsible. They don't want to pay interest. So they pay their cards down to mostly zero. Just leave one with a small balance. Saving money is a hobby to them.

[dfwxjer]

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@masscredit wrote:

@dfwxjer  They each make decent money and are very responsible. They don't want to pay interest. So they pay their cards down to mostly zero. Just leave one with a small balance. Saving money is a hobby to them.

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What you responded with has nothing to do with the number of cards an 18 year old should have. There's no benefit to adding a third card here. They can, and should, be paying the balances in full on their current cards. One card is plenty to build credit with, and two is good in case the first card is lost/stolen/compromised. There's no benefit to a third card with their income levels and it just increases the risk of debt. 

[NoHardLimits]

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@dfwxjer wrote:

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@masscredit wrote:

@dfwxjer  They each make decent money and are very responsible. They don't want to pay interest. So they pay their cards down to mostly zero. Just leave one with a small balance. Saving money is a hobby to them.

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What you responded with has nothing to do with the number of cards an 18 year old should have. There's no benefit to adding a third card here. They can, and should, be paying the balances in full on their current cards. One card is plenty to build credit with, and two is good in case the first card is lost/stolen/compromised. There's no benefit to a third card with their income levels and it just increases the risk of debt. 

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Since Discover is now part of Capital One, they only have a credit card relationship with one financial institution.  It could be a wise move to add a card simply to grow the number of lenders from one to two.  I agree with the earlier recommendations to try Chase Freedom Rise.