Help With Getting A New Credit Card

[Anonymous]

Right. So I have just recently turned 18, and got approved for a Discover Student Cash Back card for a $1,000 line of credit. I got approved despite having no credit history and not having to give any sort of security deposit.

My current Credit Score is a 678 (was at a 694 before applying for PayPal Credit) which I'm told is immpecible based on my age and only having the account open for a little bit over a month.

I recently a few days ago applied for PayPal credit, and got DENIED. Got very upset. Luckily Discover only pulled a hard inquiry from Equifax and not Transunion. So I have 2 hard inquires on my Equifax, and 1 on my transunion.

Anyways getting to the point now, I am responsible and am trying to boost my credit as soon as possible. My first due date for the Discover Card is soon and I have just about the whole balance paid off, I typically make regular payments.

I would love to get the Citi Double Cash card. I did not pre-qualify for it, especially after being denied for PayPal credit, I am extremley hesitant to apply for anything again.

Can anyone recomened me if I should apply for this, just wait (probably the smart thing to do anyway), or a different cash back card that you think I can get my hands on at this point in time? Thank you.

[AllZero]

Congratulations on your approval!

Smart thing to do is wait maybe 6 months to a year. You've experienced one denial and no prequal offer. It's a sign to "garden".

Hang around and learn all you can from the forums.

[Anonymous]

What's the hurry?  I'm sure the Discover Student card offers 5% cashback on category spend, 1% on non-category spend, and a cashback match at the end of the first year.  So even if you spend only in the 1% categories you'll still get a cashback match at the end of the year that makes the rewards at least equal to what you can get with the Citi DC.

You need to pace yourself; allow the Discover card to report to the credit bureaus for a few months and your scores to recover, before attempting any other applications.

[Anonymous]

These folks that have posted above me offer some solid advice.

Your scores are far from impeccable, regardless of age or number of tradelines. Keep that in mind and allow it to guide your course going forward. You need to give it some time. Time will improve your credit score far more than adding a bunch of inquiries and (if successful) new accounts.

[Anonymous]

CONGRATS on your Discover card. 

Are your scores from CreditKarma or other free score site? If you've only had Discover a month or so, scores are probably Vantage3.

If I remember correctly... most cards use FICO scores, not Vantage3. It takes 6mos for FICO scores to post.

So... enjoy your Discover card. Let your info build till you get a FICO score. Then, maybe try American Express, CapOne.

[Anonymous]

Yeah, give it time. I understand how hard waiting can be—I understand SOOOO very well! But you have this beautiful, pristine credit future ahead of you and a lot of time to get the best cards. But you need to wait—and it really isn't that long. I'll bet you'll get some tempting pre-approvals within six months or perhaps a little longer.

Please don't get too many cards right away. Banks like Chase (who have much-coveted credit cards) will auto-refuse you if you have more than 5 new cards in two years. (It's the 5/24 rule and you probably already know about it.) Hold out for the best. 

I can't predict your future but I'll bet that you will be getting preapprovals for the Citi Double Cash card soon enough. Wait for that to happen, but before you apply, come here to ask for advice. 

[Anonymous]

Agreed with all of the above advice. I’ll add to what Tenaya said - wait for the offers, but NOT “offers” you see on Credit Karma or WalletHub or other monitor services. They get referral fees if you apply through them, so they’ll tell you anything to get you to apply. Not enough credit? Apply for a card. Girlfriend broke up with you? Get a card. Dog ran off? Apply! Anything they can do to get you to app, they’ll say. They’ll tell you that your score makes you likely to get card X, but they’re loosely basing that on the VantageScore they provide, which is largely irrelevant as it’s a score that’s basically unused by lenders, and which often varies dramatically from your FICO scores, which ARE used by lenders.

Give it 6 months minimum, then check prequals directly from the issuers of the cards you’re interested in. That’ll much more reliably tell you where you stand.

[Hex]

Can an 18 year old get prequalified offers? I think a local credit union card might be a good thing to think about.

[Anonymous]

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@Hex wrote:
Can an 18 year old get prequalified offers? I think a local credit union card might be a good thing to think about.

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No.  The CARD Act (2009) prohibits lenders or financial institutions from soliciting business from young consumers (defined as those under the age of 21). 

[Anonymous]

I actually got pre-qualified for Amex Platinum, Capital One Platinum, and multiple others, just none from a card I want.