1st serious card...

Discussion in 'Newbies' started by JasonE, Aug 7, 2015.  |  Print Topic

  1. JasonE

    JasonE New Member

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    Hi,
    I have been using a Chase Slate card to build up credit for almost a year now. Credit Sesame tells me that my score is 761. I also use a chase freedom and an Amex. I would like to apply for cards to receive miles for air travel. I wanted to know 3 things. First, how much should I put down for my income(do not have an income)? I understand that this is a crucial step in applying for a card. Second, if/when I get accepted, what is the easiest way to rack up the points without ACTUALLY spending the money? And third, which card do you suggest I apply for(looking for $0 sign up and most rewards for least amount of spending)? I have been wondering the answers to these 3 questions for quite some time now, but never asked because I was busy building up my credit score. Looking forward to all of your help. In advance, thank you!
     
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  2. vickers

    vickers Gold Member

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    Hello, and welcome to Milepoint Jason.

    I am a bit confused by your situation.

    You do not have an income and want to rack up points without actually spending money? How have you been building your credit with the Chase Slate card without income? Or are you saying you are building your credit by having the card open?

    When applying for a credit card, I believe you are permitted to use household income, or income that you could be expected to have "reasonable" access to. As for not spending money, most of the notable rewards card have a hefty sign-up bonus once minimum spend requirements (usually $3K or so).

    You could manufacture spend your way to rewards without paying anything other than fees to do so, but I do not have any experience with this. I have hesitated to pull the trigger on MS as the rules change frequently and credit card companies and retailers are finding ways to combat this. It just hasn't been worth my time, expense and effort as planning in advance of applications helps me obtain the sign-up bonus with standard household spending.

    For your third question, what are your goals? Many rewards credit cards have a $0 annual fee for the first year, but are you looking to earn hotel points, airline points, or general-spend travel points?
     
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  3. JasonE

    JasonE New Member

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    I do not have an income because I am a college student but I use my parents money. In terms of my credit score, I only use a little amount on groceries every month and pay the bill on time. In respect to earning points without spending money, I understand that the Target Red Card was great at doing that before it was shut down. I also know that gift cards are a good option but it makes you look very shady and raises a lot of suspicsion. I heard of something called Blue Swerve, but not sure if thats something completely different or something that is comparable to the Target Red Card. The end goal is to open up cards, rack up airline points, and then close them.
     
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  4. HaveMilesWillTravel
    Original Member

    HaveMilesWillTravel Gold Member

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    My recommendation: focus on your studies; the long term ROI is likely better than any scheme you might find here.
     
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  5. vickers

    vickers Gold Member

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    Makes sense. I think you are going to struggle with this game for now with the limited income situation you are in. When you open up cards, you need to ensure you can get the signup bonus to really make the game worth it. If you dont think you can spends lets say $3K in 3 months (which seems to be the most common bonus structure) hold off on that card. There are others, of course, and 2 right off the top of my head are offered by Chase, which you already have a relationship with. I know these do not rack up airline points, which is a goal of yours, but I think most of those have higher minimum spend requirements. But Im sure someone else will weigh in on those. For a followup question, what is your home airport, so we know which airline cards to recommend.

    The IHG Reward Card currently has an offer for 60K points if you spend $1K in the first 3 months you have it open. If you can combine with pointsavers, 60K points will go a long way. The annual fee is $49 (waived the first year), and you get a free night each year at any IHG property, which is also a great value.

    Chase Freedom is also a card you may want to sign up for an hold on to, as there is no annual fee, $100 bonus for $500 spend in 3 months, and a 5% cash back on rotating categories.

    I'd start with these if they fit your goals, and hold off on the larger signup bonuses unless you know you can meet the minimum spend requirements.

    As far as Manufactured Spend tricks, sorry, I am not the right guy to answer those questions....
     
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  6. vickers

    vickers Gold Member

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    Nah, you can do both, but with limited income, the OP gotta be careful about the cards he signs up for at this stage. This is also a form of education, and a great learning experience.
     
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  7. satman40

    satman40 Gold Member

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    I once had a Medical Student working with me, gained a CC, and charge a ton for friends, many of them never paid him back.

    He is a plumber now,

    Get through school,

    Most miles are given away, lt takes money and time to travel.

    Credit score means very little, it is that amount if money you can borrow, and your net worth that counts.. Money is for keeping score...
     
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  8. JasonE

    JasonE New Member

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    Home airport is JFK, which cards would be good to get??
     
  9. vickers

    vickers Gold Member

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    Can you meet minimum spend of $3K in 3 months at this point in your life?
     
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  10. edekba

    edekba Gold Member

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    I dont think Jason is actually reading what people say. What's the point?
     
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  11. daninstl

    daninstl Gold Member

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    If your located in NYC just about any work well. I'd stick with your Chase Freedom and use it only for stuff you can pay for. Try to buy your school supplies at an office supply that offers 5x and keep it simple for now. Get through school and then you won't have such a problem with your income level, etc. Also pay off your cards every, every month no matter what.
     

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