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Is it possible to get reward card as first card?

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Anonymous
Not applicable

Is it possible to get reward card as first card?

I'm 22 years old, and looking to get my first credit card. I was denied 5 months ago for a Chase Freedom because I had too much outstanding debt, or something like that. I have a $7k student loan. I also discovered that I was an Authorized User on my Mom's Chase Visa and AMEX with $16k owed between them. I removed myself as an authorized user from those accounts, and am waiting for them to update to closed with a $0 balance on my credit reports. My history with Amex will date back to 2000. I graduated in May with an EE degree, and am still looking for an engineering job in the defense industry, so I don't have a full time job. I make about $15k off the books...

 

I am waiting for the credit report to update till I buy an equifax score from myFico. However I have started using Credit Sesame and Credit Karma today. Credit Sesame is saying 696, and is only is only showing one of the cards ($6k). Credit Karma is saying 666, and is showing both of the cards ($16k).

 

Is it possible for me to get any decent cards? Or am I going to have to start off small? Any recommendations?

Message 1 of 16
15 REPLIES 15
CreditScholar
Valued Contributor

Re: Is it possible to get reward card as first card?

The first question you should ask yourself is: why do you want a rewards card? What exactly are you trying to get out of it?

 

As long as your income remains where it is, you probably won't benefit much from one even if you do qualify. Rewards cards are targetted towards high-spending people with good credit histories.

 

If you spend $5k per year (33% of your pre-tax gross income), it'll take you roughly 5 years to get a round-trip domestic coach ticket. That simply doesn't add up. If your income does increase dramatically (increases by 3-4 times or more), then you might want to look more heavily into rewards cards. In the meantime cash back cards might be a better option for you. The Freedom is a good choice imo. You might also want to look into the Amex Zync.

 

With a FICO between 680-700, you can qualify for some of these. However the scores you've seen are FAKOs, and you should probably first obtain your true FICO scores for a better idea.

 

EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Message 2 of 16
pipeguy
Senior Contributor

Re: Is it possible to get reward card as first card?


@Anonymous wrote:

I'm 22 years old, and looking to get my first credit card. I was denied 5 months ago for a Chase Freedom because I had too much outstanding debt, or something like that. I have a $7k student loan. I also discovered that I was an Authorized User on my Mom's Chase Visa and AMEX with $16k owed between them. I removed myself as an authorized user from those accounts, and am waiting for them to update to closed with a $0 balance on my credit reports. My history with Amex will date back to 2000. I graduated in May with an EE degree, and am still looking for an engineering job in the defense industry, so I don't have a full time job. I make about $15k off the books...

 

I am waiting for the credit report to update till I buy an equifax score from myFico. However I have started using Credit Sesame and Credit Karma today. Credit Sesame is saying 696, and is only is only showing one of the cards ($6k). Credit Karma is saying 666, and is showing both of the cards ($16k).

 

Is it possible for me to get any decent cards? Or am I going to have to start off small? Any recommendations?


I suspect something small if you use your own credit score. You are kind of in a funny place, if you use your AU status you are "over extended" but if you use your own status without the AU accounts you have very limited credit.  If I were you I think I'd apply for a Capital One rewards card, you'll probably get a $500 CL which will increase to $750 in 6 months, use it to establish your own credit and then move on in a year (it will help you get started, but it won't really grown with you after a year). You might also try the Discover more card right now. If you get declined for both, I'd suggest you go with a secured card from a Credit Union or Capital One, you'll have to add cash up front, but it'll report as just a regular tradeline, not a secured one.

 

I think you'll find that a year "starting small" will open up your options in establishing credit on your own.

Message 3 of 16
Creditaddict
Legendary Contributor

Re: Is it possible to get reward card as first card?

Well if Amex considers you cardholder back to 2000, I would try applying for Zync or Gold.

 

No Chase until you build history... and you should buy either TU or EQ here at MyFico.  KreditKarma is not a true Fico score and kind of worthless.

Message 4 of 16
LS2982
Mega Contributor

Re: Is it possible to get reward card as first card?


@CreditScholar wrote:

The first question you should ask yourself is: why do you want a rewards card? What exactly are you trying to get out of it?

 

As long as your income remains where it is, you probably won't benefit much from one even if you do qualify. Rewards cards are targetted towards high-spending people with good credit histories.

 

If you spend $5k per year (33% of your pre-tax gross income), it'll take you roughly 5 years to get a round-trip domestic coach ticket. That simply doesn't add up. If your income does increase dramatically (increases by 3-4 times or more), then you might want to look more heavily into rewards cards. In the meantime cash back cards might be a better option for you. The Freedom is a good choice imo. You might also want to look into the Amex Zync.

 

With a FICO between 680-700, you can qualify for some of these. However the scores you've seen are FAKOs, and you should probably first obtain your true FICO scores for a better idea.

 



+1




EQ FICO 548 3/3/16
Message 5 of 16
Anonymous
Not applicable

Re: Is it possible to get reward card as first card?

I would start with CapOne. An Amex Zync, while a nice card to have, won't help on the CL and UTIL front. It is still worth pursuing because it may increase your AAoA, but start with an easy to get card and then a year from now you can start looking to prime cards.

Message 6 of 16
LS2982
Mega Contributor

Re: Is it possible to get reward card as first card?

@ctb +1



EQ FICO 548 3/3/16
Message 7 of 16
Repo-ed
Senior Contributor

Re: Is it possible to get reward card as first card?

w/e LS +1'd

5/2012: 560 credit scores across the board
12/2014: 750+
3/2017: 780+
11/2019: 833
2/2023: Experian via Chase United Explorer CC pull - 891
Message 8 of 16
LS2982
Mega Contributor

Re: Is it possible to get reward card as first card?

@Repo lol!



EQ FICO 548 3/3/16
Message 9 of 16
crunching_numbers
Valued Contributor

Re: Is it possible to get reward card as first card?


@Anonymous wrote:

I'm 22 years old, and looking to get my first credit card. I was denied 5 months ago for a Chase Freedom because I had too much outstanding debt, or something like that. I have a $7k student loan. I also discovered that I was an Authorized User on my Mom's Chase Visa and AMEX with $16k owed between them. I removed myself as an authorized user from those accounts, and am waiting for them to update to closed with a $0 balance on my credit reports. My history with Amex will date back to 2000. I graduated in May with an EE degree, and am still looking for an engineering job in the defense industry, so I don't have a full time job. I make about $15k off the books...

 

I am waiting for the credit report to update till I buy an equifax score from myFico. However I have started using Credit Sesame and Credit Karma today. Credit Sesame is saying 696, and is only is only showing one of the cards ($6k). Credit Karma is saying 666, and is showing both of the cards ($16k).

 

Is it possible for me to get any decent cards? Or am I going to have to start off small? Any recommendations?


This is going to be your biggest obstacle. No verifiable income. Things will change when you have a job.  Amex is very income sensitive. You might be stuck in student cards until you can show verifiable income.


Starting Score: 693 TU FICO, 679 EQ FICO
Current Score: FICO 8 = 844(9/15) EQ, 827 TU, 811 EX (7/15); mortgage FICO= 758 (9/15)EQ5, 797 TU4, 748 EX2 (7/15)
Goal Score: 750+, but shooting for the 800's
Hyatt Visa Sig ($23K), Amex BCP (24.8K), BofA Travel Rew Sig (22.5K), B&N World MC (22.3K), Amex RP Gold (NPSL w/ S&T), Cash+ Sig (20K),United Mil+ExpSig (16.3K), FNBO Visa (13.1K), Hilton Surpass (10K), Freedom Visa Sig (8.6K), Disc It (16.4K), Citi Dia Pref MC (3.7K),Sam's MC (10K), Wally (7.5K), JCP(5.3K), Costco (2K)
Message 10 of 16
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