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Hey guys,
I am trying to assist a friend, She currently banks with POPA and FFCU. She wants a credit card with 0% interest and she's a student and those banks don't offer one. I noticed that Citi and Discover have student cards, yet she doesn't bank with Citi and has no score what so ever, Do you guys believe that it will be a challenge for her to obtain either card??
She has no score but a steady income that she can report, not sure which to advise her on, any opinions?
She should have no problem at least applyiing for the Discover it student card - I mean it was pretty much designed for students who are starting out on their credit journey. Speaking of that, there's a "Journey" card offered by C1 but it's not the best and it has no intro 0% APR period either.
@Anonymous wrote:
With empty CR's I was denied the Cap1 student card. If she wants 0% already I'd be concerned about how she plans to use the card...
I'd recommend going the Discover secured route. That's what I did, and look at my siggy now haha.
What Grasshopper said.
As a beginner, 0% APR is the last thing your friend should be looking for. She should be developing good credit habits. That's not making a monster purchase and then paying it off over time, no matter how worthy. That's a use of credit, but not the best use, and she should be going for best use. Making a monster purchase and paying it off over time results in something called high utilization until the very end of the payoff, and is very harmful to her credit score.
A good scenario for her might be to put textbooks she needs today on the card while the Bursar's office slowly cuts the financial aid check that she won't get for another couple of weeks. A purchase she can pay off in full before she starts to run up interest charges.
For the day to day, she should have a budget for lattes, for example. Something very modest that happens every month. Every month she can recharge her Starbucks card with her budgeted amount using the credit card, and then pay it off.
In a few months time, she'll have the kind of credit score where she might well qualify for a 0% introductory rate. Hopefully she'll know by then not to use it except in a true emergency.
I got the Cap One Journey with zero experience. My sister just got the Discover IT with zero experience. If I could pick one card, I'd go with the Cap One Journey. It has treated me very well and was my only card for almost 3 years.
@BurgeoningHope wrote:
@Anonymous wrote:
With empty CR's I was denied the Cap1 student card. If she wants 0% already I'd be concerned about how she plans to use the card...
I'd recommend going the Discover secured route. That's what I did, and look at my siggy now haha.What Grasshopper said.
As a beginner, 0% APR is the last thing your friend should be looking for. She should be developing good credit habits. That's not making a monster purchase and then paying it off over time, no matter how worthy. That's a use of credit, but not the best use, and she should be going for best use. Making a monster purchase and paying it off over time results in something called high utilization until the very end of the payoff, and is very harmful to her credit score.
A good scenario for her might be to put textbooks she needs today on the card while the Bursar's office slowly cuts the financial aid check that she won't get for another couple of weeks. A purchase she can pay off in full before she starts to run up interest charges.
For the day to day, she should have a budget for lattes, for example. Something very modest that happens every month. Every month she can recharge her Starbucks card with her budgeted amount using the credit card, and then pay it off.
In a few months time, she'll have the kind of credit score where she might well qualify for a 0% introductory rate. Hopefully she'll know by then not to use it except in a true emergency.
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+100. FTR I got my FU after only 6 months at the Disco and it came with 15 months 0%. Not that I've taken advantage of it even one cycle though...
@Anonymous wrote:I got the Cap One Journey with zero experience. My sister just got the Discover IT with zero experience. If I could pick one card, I'd go with the Cap One Journey. It has treated me very well and was my only card for almost 3 years.
Were you AU or loans anywhere and/or did you have a high income?
@Anonymous wrote:
@Anonymous wrote:I got the Cap One Journey with zero experience. My sister just got the Discover IT with zero experience. If I could pick one card, I'd go with the Cap One Journey. It has treated me very well and was my only card for almost 3 years.
Were you AU or loans anywhere and/or did you have a high income?
Nothing. No AU, no loans, small income of around $12000 at the time if I remember correctly. This was literaly my first expereince with any sort of credit.
First card I got was the Discover it student card the summer after I graduated high school. No credit history at all (AU, loans, anything). Received a $500 limit with 0% apr for 6mo. Great card and bank imo, highly recommended. Regular credit line increases every 4 months... 500/650/800/1050/2000/3000/4700/5500/6700 today (going off of memory, but something close to that).
Edit: original reported income was $10k. Most recently $30k. Still in college.