Credit Card Thread

Quote from tadc : This is the first time I've seen that term defined anywhere. Is it your definition or some authoritative source?

That's what it says on credit card applications and when you talk to credit analysts on the phone.

Quote from hAvAAck : That's what it says on credit card applications and when you talk to credit analysts on the phone.

Not saying your wrong, but I just randomly checked Citibank and CapOne applications, and the closest thing I could find was this:

Quote : Alimony, child support, or separate maintenance income need not be revealed if you do not choose to have it considered as a basis for repaying this loan. We may require proof of income.

If it ain't in writing...

Quote from tadc : Not saying your wrong, but I just randomly checked Citibank and CapOne applications, and the closest thing I could find was this: If it ain't in writing...

it's not like anyone but AMEX checks for proof of income.. you can say whatever you want, but the spirit is that you put down the income that would go towards the debt. I'm not one to judge, though.

Quote from tadc : This is pretty relevant: http://slickdeals.net/forums/show...tcount=417 Also one thing to remember - they have no way of verifying your income, and they ask for "household" income. I've always interpreted that to include parents, roommates, girlfriends, etc. Just sayin'...

Those are asking for school information, but I am not going until this fall. If I put the information of the school I plan on going to will they verify that I actually am going to the school I put down?

If you have a discover card and you go to the discover home page for your card and have a "request increase" button enabled you most likely will be able to get a credit line increase without incurring a hard pull
Just put an amount in and if you get to the page saying that they could not approve it without looking at your credit, just go back and put in a smaller amount. There usually is an amount where they will grant it OR check your credit and you can just accept it. For me the threshold was somewhere between 3k and 4k

Quote from paperfc : Those are asking for school information, but I am not going until this fall. If I put the information of the school I plan on going to will they verify that I actually am going to the school I put down?

Doubtful. Fall is probably close enough...

I cant seem to find the issue here to follow the conversation. Are you trying to apply for a credit card or and increase in the credit limit?

Quote from skwz : Any card you get will build your credit which should be your top priority. Get a card without an annual fee and has a decent rewards program. APR shouldn't be a concern since you're ALWAYS going to pay off your balance in full. Remember, as a college student, you're not going to be spending enough to make rewards worthwhile (generally) and your primary goal is to establish a good credit history. That said, I recommend Discover Student More Card and Citi Forward (wait out to see if annual fees are tacked on).

I was supposed to ask the same question and thanks for the recommendation.I think it helps

Do stores still avoid taking Amex? Does anyone have trouble using it at a lot of places?

On another note, how come Chase Freedom isnt listed on the 1st post as a card with High Rewards (definitely beats a lot of those posted cards)

Quote from Coperni : I was approved Cap One Journey(Student) card yesterday at their usual $500 CL. Would applying a second card so shortly be a bad move? I want to build credit and I've heard that having multiple lines of credit helps with this. I will be a Junior in college this fall and have 3.5k in loans with a steady income part-time job.

Quote from tadc : Each application only hurts your score a bit. In your case your score is probably bad/nonexistent anyway, so one more app probably won't make a big difference. The worst they could do is decline you, and in any case the damage goes away over several months, so not really a big deal to try.

Most if not all inquiries will last 2 years. Applying and getting rejected is a double negative because it both immediately hurts you, and if not approved there is an opportunity cost lost. My advice is only to apply if you're somewhat confident you will be approved.

I would recommend to establish payment history on the card for 6 months, then apply for a new card. If you are declined, you can likely appeal and get approved, stating your payment history and intentions on building credit.

Quote from Leb : Do stores still avoid taking Amex? Does anyone have trouble using it at a lot of places? On another note, how come Chase Freedom isnt listed on the 1st post as a card with High Rewards (definitely beats a lot of those posted cards)

In my experience, MOST stores do accept American Express. The exceptions are independent retailers/restaurants, and budget-themed franchises. AmEx is associated with wealthy cardholders and business accounts, so independent restaurants that have high-priced menus almost always take AmEx. Finally, AmEx tends to be more universally accepted in large metropolitan areas, and much less in rural areas.

This is why I carry an AmEx and a MC/Visa backup. I have to use the MC/Visa just a few times a month, which leaves me with a large unused credit line as my "emergency" fund.

Quote from Leb : Do stores still avoid taking Amex? Does anyone have trouble using it at a lot of places? On another note, how come Chase Freedom isnt listed on the 1st post as a card with High Rewards (definitely beats a lot of those posted cards)

I wouldn't say a lot, but I can never be sure about (or remember) which restaurants accept Amex.

Quote from bigemu1 : Most if not all inquiries will last 2 years. Applying and getting rejected is a double negative because it both immediately hurts you, and if not approved there is an opportunity cost lost. My advice is only to apply if you're somewhat confident you will be approved.

Inquiries may last 2 years, but their *impact on your score* declines fairly rapidly.

I just got my first credit card from my bank(US Bank) its the College Visa card. I got a limit of $300 and just interested in some tips on the most efficient way to build credit.

Quote from Leb : Do stores still avoid taking Amex? Does anyone have trouble using it at a lot of places? On another note, how come Chase Freedom isnt listed on the 1st post as a card with High Rewards (definitely beats a lot of those posted cards)

My parents own a small restaurant and we do not take Amex because they take a larger % of each sale than MasterCard/Visa, almost double in some cases.

Quote from tadc : Inquiries may last 2 years, but their *impact on your score* declines fairly rapidly.

This is wrong information. FICO will evaluate it into the algorithm for a minimum of 1 year. Beyond that it still looks bad to an underwriter. Vantage, actually, will account for any hard credit inquiries for the duration they remain in your credit file (2 years).

With both VantageScore and FICO scores, the impact of the inquiry remains constant during the period that it factors into the score. There is no decline as stated above, nor is it "rapid". Even if you weren't aware of these facts, just think about it logically. If inquiries had little impact beyond a few months as stated, then what would be the use of maintaining their history for 2 years? With 8 out of the 10 major credit lenders now using Vantage in coordination with FICO, it's something to be cautious about.

Again, I advise only to apply to those creditors you feel somewhat confident about the approval. Try to resolve all of your credit "shopping" and inquiries for home/auto within a 14-day period, because they will be factored as "one inquiry" within that window, regardless of approval/denial. This does not apply to revolving lines of credit, etc.

Here's some helpful insight from FICO's website:

Quote : Inquiries can have a greater impact, however, if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk: people with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports.