A student trying to optimize their credit score

[Anonymous]

Thanks so much for the replies, you've all been extremely helpful so far.

To confirm, I opened my discover card in December 2013, so it's been about 1 1/2 years that I've had it. Before then, I had no credit score. I did not sign on with anyone else, it's all me from the start.

The reason I want high credit is, primarily, to get the best rates on mortage or even auto/school loans in the future. I've read that credit checks are done a lot of time when applying to jobs and perhaps graduate schools as well, so it's one additional factor that makes me a strong candidate. Credit cards are nice, but I see them more as a tool to raise my credit for the larger loans I may need; Cashback rewards are exremely nice as well.

One of my concerns when applying for new cards is the fact that I'm a student. I'm afraid that will affect my elligibility since I don't have any tangible income and will be living off of student loans. Like axe said, however, if I can use my mothers income, this may not be a problem at all =)

The first step for me it seems is to check my credit score using the official website. I've never done it before, so perhaps my credit score is truly unknown to me. Would you recommend me pulling all 3, or only 1, and doing so for the other agencies every 4 months?

Thanks everyone!

[Anonymous]

My advice is, since you are already using Credit Karma, make sure you have printed your full EQ and TU reports through Karma, and that you understand everything on it and that all the accounts look correct.  Then do a pull of your EX report . (I don't know of a web site that gives free EX reports, so you'll probably just need to use annualcreditreport.com.) 

After you have gotten all three reports clean and intelligible, you might just want to get the $25 monitoring service at myFICO.  This will give you all your reports and a boatload of FICO scores.  If you are limited on money, you may end up deciding to cancel after a week, which may make sense if you are on a budget, 

Keep using Karma throughout the next few years to get free TU and EQ reports.  Nothing wrong with watching the Vantage scores, as long as you watch them relative to themselves.  E.g. watch the TU Vantage and if it takes a dive, that's a sign to scrutize your TU report.  Same for EQ.  Credit.com is a free tool for monitoring your EX Vantage though it doesn't give you a free report.

One thing you are going to be very interested in is comparing the TU FICO 8 score you get from myFICO against the one that you are getting through your Discover card.  Your 780 is very odd, given that you have only one tradeline on your entire report and that it is about 1.5 years old.  You should also be interested in your FICO 8 scores from EQ and EX.

The advice about adding a couple more credit cards over the next year or so is very sound.  Look for ones that you like but seem within grasp,  Three cards plus a student loan (and then as you say a car loan down the road) is more than fine for building a great score over the next several years.

[Anonymous]

Wow, I am seriously in Awe, my scores from all three bureaus are around 780. I had them done by myFICO.

[img]http://i.imgur.com/i8VOblA.png[/img]

1. I have great credit scores

2. If I can use my parents income, I have an acceptable income (about $80,000)

3. I have no bad marks or missed payments

BUT

4. My file is thin, only having 1 discover card for 1 yr 6 mo.

The only negative things impacting my credit currently is AAoA and number of credit lines.

Where do you think I should go from here? I'd really like a chase freedom and amazon rewards card, do you think I have a good enough shot at getting them to risk an inquiry?

Thank you!

[Anonymous]

I suggest that you look more carefully into the question of what kinds of income you are allowed to claim on a CC application, especially when it is a card your parents are NOT cosigning for.  Reporting that you make $80,000 sounds to me like "fraud" in a case like this.  Here is an article I found very quickly by googling credit card application use your parents income:

https://www.nerdwallet.com/blog/tips/credit-score/income-job-qualify-credit-card/

In the first paragraph or two, the author observes:

"The Credit CARD Act prohibited applicants from listing their household income on a credit card application, a move intended to stop college kids from listing their parents’ income even when the parents didn’t cosign the application."

Note that if you are arrested for fraud, it is not considered a vaid defence to say that you talked to some guys on a blog and you thought they told you that it was ok to say that you made 10 times what you actually do.  The judge is unlikely to say "Oh!  Well in that case...."

My advice is to look into what kinds of income you can (legally and ethically) report.  Research this using a variety of sources.  You might even consider calling the CC issuer (e.g. Chase) and asking them what is allowable.  Then try applying for the card you like.  You have a REALLY good FICO score, so I think you are very likely to be approved, even if the credit limit is not ultra high.  Then use that card regularly, keep the balance < 9% of the card's credit limit, always pay it in full, and then try applying for your third card 7 months later.  My guess is you will be fine. 

[Anonymous]

Hi everyone, I'd like to give a quick update.

I was approved for the chase freedom card!

I am now looking for a potential third card, and then I will "garden" for awhile.

Thanks for all the advice!

[Anonymous]

Hey pal.  I only just now saw your update.  I am delighted by your news. 

Your plans to slowly look for a thid card that you really like and then (at some point) apply for it sounds perfect.  You will end up with three cards and a few student loans (i.e. a solid mix of revolving and installment accounts).  No reason why you couldn't eventually have scores in the 820s with that.  (Via aging, always paying CCs in full, etc. -- and then when you do need an important credit pull, bringing your CC utilization down to 1-2%)

The Chase Freedom is a sweet, very nice cash back card.  The only thing to be careful about with CB cards is that it is easy to get seduced into spending more than you would if you didn't have the CB deal.  The CB pulls all of us in that direction -- we subconsciously feel that spending is fine because we'll get more cash back.  So just bear in mind that EVERY purchase that you don't absolutely need is a loss.  The CB deal would have to be enormous to make (say) a restaurant meal worth your while -- e.g. you'd need probably a 50% cash back card or something like that.

Doesn't mean (of course) you shouldn't ever eat out or go to the movies or whatever.  Just treat it the same way you would if you had to pull cash out of your wallet.  What CB is amazing for is all the purchases you would have had to make anyway: gas, groceries, cell phone bills, etc. 

All the best...

[Anonymous]

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@Anonymous wrote:

Hi everyone, I'd like to give a quick update.

I was approved for the chase freedom card!

I am now looking for a potential third card, and then I will "garden" for awhile.

Thanks for all the advice!

---

OMG this is basically my situation. Don't mean to hijack the thread or anything but I currently have $3500 on student loans wich a Wells Fargo banker once suggested never pay in full at once. He explained that just paying the minimum evey month will ensure I get payment history which according to him and some here looks great.

My Discover has a limit of $3000 but only because I had to use my wife as a co-signer, they denied me for their student card on the fact that I had no income (like you)

I do have a FICO score of 771 but only because I'm an authorized user on one of my wife's oldest cards. I'm aslo very interested in the same cards as you (Amazon, Chase) and worry over the fact that I generate no income, other than my financial aid refunds. My objective is to have a good enough score to be able to buy a car in a bout 2 years.

I read the whole thread thinking about how similar your situation is to mine, to some extent. How exactly did you get an apporval on Chase without income, did you used your parents?

Congrats and again, I hope you don't mind me venting in your thread