Quick questions on Student Credit Cards

[Comp625]

I'm going to be a Junior at a private institution and I really haven't thought about building a credit history until now (shame on me). I've done some research and I've nailed it down to three possible ones to apply for.

1) Bank of America Student Visa Platinum
2) American Express Blue for Students
3) Citibank Platinum Select Visa for College Students

- I've found that BoA's card has the highest variable APR out of the three that I'm currently concentrating on.
- Amex Blue has the lowest APR for both the fixed-first 6th months as well as the prime rates.
- Citibank offers some neat cards that offer rewards back (such as 5% cash back if you spend it at supermarkets, gas stations, etc.) but I don't think I can get approved for higher end cards like that.
- From what I understand, I can easily get the BoA card because I already have a checking account with them so they have some sort of starting point to review my financial history.
- I really don't care about the initial credit limit, even if it's $500.

I've been working for almost three years and I do have a checking account. Although my checking balance and history don't show it, I'm financially responsible. I suck at saving money but I'm really good at paying stuff off on time as well as not spending like crazy. It's a happy medium which I'm satisfied with at this moment in time.

My questions are as follows:
1) Which card should I pursue?
2) If I get approved for a card, do I still have the option of changing my mind and not electing to become a cardmember? I'm asking because I am considering applying for 2 of the 3 cards but I only want to keep 1. I just don't feel like applying for 1 card, find out I'm rejected 1 week later, only to continue applying elsewhere.

Thanks!

 

[Zee]

citibank. the virtual numbers you can generate for online purchases/over the phone purchases plus the cashback beats all.

/thread.

 

[DaWhim]

citicard. for your 1st cc, make sure you can get it. after that you won't have problem getting 90% of other cc you like out there. amex is hard to get without any credit history.

 

[Pandamonium]

I'd go for the amex anyway. They're pretty good about converting accounts, so after you hold your cc in good standing for a couple of months to a year, you can ask to be converted to Blue Cash, which offers a very competitive rebate program. (tiered cash-back maxing 3% iirc)

 

[compnovice]

I got my amex without any credit history but citibank rejected me

 

[delroy]

Quick answer: Dont do it man!

 

[Comp625]

So to answer my 2nd question, is it possible for me to deny a credit card after getting approved? In other words, if I sign up for 2 of them, get approved for both if I'm lucky, can I reject one and keep the other? Or am I forced to keep both since I signed up for both?

 

[RossMAN]

Originally posted by: Comp625
So to answer my 2nd question, is it possible for me to deny a credit card after getting approved? In other words, if I sign up for 2 of them, get approved for both if I'm lucky, can I reject one and keep the other? Or am I forced to keep both since I signed up for both?

Once you're approved, it's a done deal. You can however close your account but that will hurt your credit.

Here's my pick (in order)
3) Citibank Platinum Select Visa for College Students
1) Bank of America Student Visa Platinum
2) American Express Blue for Students

 

[raptor13]

If you're approved for both, keep both. Just cut one up and never use it. Your credit score benefits from you using a smaller percentage of your total available credit so, by having two cards, you'll likely have more total credit thus keeping your used-percentage lower.

I hope that made sense. In any case, don't deny a card this early on.

 

[chimmytime]

Are you actually going to be carrying a balance on the credit card, or do you just want one?

Always look for a card that will give you back something for using it, ie points or cash rebates.

You can decide after you are approved whether to keep both or just one. All it takes is usually a phone call to cancel a card. You can always just open it, and cut up the card. Then in two years realize that you have close to 14 cards open, some even from the same bank. Ha! That was me.

 

[iwantanewcomputer]

why the hell do you care what the apy is? pay it off on time and you won't owe any interest

 

[tfinch2]

Originally posted by: iwantanewcomputer
why the hell do you care what the apy is? pay it off on time and you won't owe any interest

 

[CRXican]

CitiBank fo sho

 

[Comp625]

Good point on the APR. It's more of a "just in case" kinda thing.

I do want to use the credit card from time to time but what do you guys mean by keeping a balance on it? If you mean paying only a fraction of the debt that I owe, then NO.

I thought to build credit, you had to use the credit? So if I get 1 or more credit cards, I shouldn't use it much, if it all, in order to keep my used percentage vs total credit limit ratio low?

Thanks for the pointers so far guys!

 

[Comp625]

1 more question.

Although I think this is a myth, my best friend who recently got a credit card says its best if I pay only a fraction of what I owe in order to incur the interest fees. Apparently, it helps build credit faster because you're helping the bank out by essentially giving them money.

 

[Legendary]

Originally posted by: Comp625
1 more question.

Although I think this is a myth, my best friend who recently got a credit card says its best if I pay only a fraction of what I owe in order to incur the interest fees. Apparently, it helps build credit faster because you're helping the bank out by essentially giving them money.

Banks don't compute your credit score, thus giving them money will not help your credit score. Your friend is incorrect. Your FICO (credit) score is done by a formula most of the time by the three credit bureaus.

 

[Zoblefu]

Note that having 1 credit card and not using it does not build credit. You need to actually use it to build credit.

Having more than one may help with the total credit versus credit used for your credit score, but just don't have a large balance compared to your limit and you should be fine there. This is difficult at first (when your limit may be as low as $500-2000) depending on how much you spend a month. Then again, if you're used to not using one anyway, then it shouldn't be a problem.

As far as paying off your credit card balance immediately or letting the "bank get money" by only paying part of it... I don't think it is worth it to you to not pay it off immediately.

I have heard that it helps a bit, yes -- but I don't think it's worth paying for these extra credit score points. My credit score is very high and I have never paid any interest (always paid my payments in full each month).

Hope this helps...

 

[RossMAN]

Originally posted by: Comp625
1 more question.

Although I think this is a myth, my best friend who recently got a credit card says its best if I pay only a fraction of what I owe in order to incur the interest fees. Apparently, it helps build credit faster because you're helping the bank out by essentially giving them money.

100% BS

 

[imported_blablabla]

I just applied for BoA student card and also for a Platinum Mastercard... i didnt even look at the apr b/c(just like you) I am trying to build credit... meaning I MUST pay 100% of my expenses every month.... sort of like building good credit by not using any...

pay ALL your bill ontime every month... its the only way to create good credit..

try this:... if you do get 2 cards... you should charges expenses to both of them so that your credit shows some movement o both accounts.. if you cant max out both cards(bc as a stundent ur income shouldnt be too high)... try paying off (part or all you bill)your 1st credit card, with your 2nd credit card... this way it looks like you have movement in both accounts.. but pay both fully...if done right.. you could make it appear as if you spend twice the amount you really do...this will help increase your max spending limit(giving you better credit) in a shorted period of time...

 

[imported_blablabla]

Originally posted by: RossMAN

Originally posted by: Comp625
1 more question.

Although I think this is a myth, my best friend who recently got a credit card says its best if I pay only a fraction of what I owe in order to incur the interest fees. Apparently, it helps build credit faster because you're helping the bank out by essentially giving them money.

100% BS

------------------
Agree.... I would never use a credit card to "finance" large purchases(or even many small purchases that add up)... in a few years when you get a house or some type of capital asset.. try to see if you can set up something like a quick line of credit with a financial inst. that you have a good relationship with.....

Late fees and 15% or so apr are not worth a few points on your credit score

 

[Comp625]

Originally posted by: blablabla
try this:... if you do get 2 cards... you should charges expenses to both of them so that your credit shows some movement o both accounts.. if you cant max out both cards(bc as a stundent ur income shouldnt be too high)... try paying off (part or all you bill)your 1st credit card, with your 2nd credit card... this way it looks like you have movement in both accounts.. but pay both fully...if done right.. you could make it appear as if you spend twice the amount you really do...this will help increase your max spending limit(giving you better credit) in a shorted period of time...

Interesting...I've never heard of this "workaround" before. Can anyone comment on it? It sounds like a neat idea but surely the credit bureaus would realize what you're doing when they do an audit.

 

[Mo0o]

RossMAN, when I've applied for my credit card, under household income i included my dad's income which is significantly higher than mine. i figure it might be a reason ive never had a problem when applying. Is this correct or did i just inadvertenly commit fraud.

 

[CRXican]

Originally posted by: Comp625

Originally posted by: blablabla
try this:... if you do get 2 cards... you should charges expenses to both of them so that your credit shows some movement o both accounts.. if you cant max out both cards(bc as a stundent ur income shouldnt be too high)... try paying off (part or all you bill)your 1st credit card, with your 2nd credit card... this way it looks like you have movement in both accounts.. but pay both fully...if done right.. you could make it appear as if you spend twice the amount you really do...this will help increase your max spending limit(giving you better credit) in a shorted period of time...

Interesting...I've never heard of this "workaround" before. Can anyone comment on it? It sounds like a neat idea but surely the credit bureaus would realize what you're doing when they do an audit.

I would ignore this guy, sounds like his advice is similar to his username. Don't pay CC with other credit cards, that's stupid. You only need one CC for now.

 

[compnovice]

If you don't plan to payoff the whole balance go for a low APR card, else go for one with cash back or rewards....

Spending no more than 50% of your credit limit also helps towards your score....

 

[CRXican]

Originally posted by: Mo0o
RossMAN, when I've applied for my credit card, under household income i included my dad's income which is significantly higher than mine. i figure it might be a reason ive never had a problem when applying. Is this correct or did i just inadvertenly commit fraud.

I did the same thing. If they don't want household income they shouldn't ask for it. It's not really fraud.