My son is graduating next week (Thank God - 4 down and 1 to go). He has had a Discover card for four years with a perfect payment history. This is the only account on his credit reports. Can you give us some suggestion as to which cards he should apply for. Thanks!
amex of course. Since he will be making the big cheese now and can afford to pay in full, they'll easily give him a nice gold card!
Amex Blue Citibank Platinum MC or Visa (or both I think there's no point in having an Amex charge card... it has an annual fee and you cannot carry balances.
there is a point to having an amex charge card. You get in the good behaviour of paying off your debt in full every month The whole min payment finance charge up the wazoo is mostly an american bank thing to get people in to debt. In many other countries, you have to pay at least 10% of your visa/mc bill every month. If our country stuck to this method, folks probably wouldn't be in so much trouble with debt!
Yeah, but I think all it takes is a bit of self control to avoid falling into this trap. If you cannot control your spending, then by all means, don't use a credit card.
I would have to disagree--there are tons of advantages to charge card: 1. reports on credit as pay in full--helps boost FICO and looks good when applying for mortgage or car loan since it shows that you can pay a large balance in full each month. it is better a combo of trade lines than just revolving. 2. no pre-set spending limit--I have spent more some months than my credit limit on other cards could handle. 3. exceptional benefits that no other card offer. yes, I pay an annual fee, but I get back over $1,000 a year on card through rewards and other benefits. 4. pay in full helps to separate charges that I want to pay in full (i.e. gas, groceries, retial, etc.) and carry a balance (car repairs, etc.) while still getting rewards.
It depends on your point of view.... I think the only objective point you make is #1, it'll get you a slightly higher score with a better trade line mix. But for the rest is a matter of personal opinion. I have credit lines high enough to put me into deep trouble if I ever use them fully, so I don't feel the need for a limitless card. Plus, the "limitless" is misleading, they will pull the plug at some point if you continue to rack up charges. I'd rather have a known preset limit than try to guess if my next purchase will be approved. There are also other cards that have great benefit programs, including revolving cards from Amex. So again, it's a matter of opinion. For me paying the annual fee is not worth it....
LK, Do you think it's straight points? I had a 687 w/distant negatives and a got a TD. Or do those 13 pts matter that much?
The sad thing about American Express is that I lot of place will not even except them due to the fact the are a billing nightmare for many small companies. I do agree that it looks good on a credit application, but you have to get the right one. Some of them are not better than a visa or mc. The better ones are harder to qualify for and I believe are the pinnacle of credit cards! godaddyo live long and prosper ps) what does a college kid need with so much credit anyways. A simple line is all that I would want to be stressed about at that age.
