When to start AA cc?
Jul 12, 2011 | 6:03 am
#3
Join Date: Aug 2010
Location: ORF
Programs: Amex Plat, AA, BA Silver, Marriott Plat, Choice Gold, HHonors Gold, IHG Diamond
Posts: 3,860
Welcome to FT jys55! Probably not the right forum for this question so be aware the mods may decide to move it soon.
To answer your question, you can always start building a good credit history. Given your age and possible lack of credit history, you may find that you will not be approved for some of these credit cards. No one here can accurately predict your chances of success; there's just too much information credit card companies use to assess you as a credit risk and an analytical engine that sometimes produces uneven results when presented with similar facts.
If you decide you're going to start taking credit cards and you're getting offers in the mail, take a look at this thread in the MilesBuzz forum, http://www.flyertalk.com/forum/miles...-up-bonus.html, before you apply for any of those deals. The letters you're receiving are probably offering 30-40K for signing up. Read post #2 in that thread carefully, and you'll see that for the same credit inquiries, you'll qualify for at least 75,000 AA miles instead.
That post sets forth a method for qualifying for 225,000 miles in roughly three months, but the chances of success in getting all three cards required increase with a longer and stronger credit history. And, given that you're just getting started with credit cards, you'd probably be better off dipping your toe into the waters with one card, keeping in mind that no credit card is worth the bonus if you have to start paying interest charges. The general advice here is to pay your monthly balance off, in full, every month. That helps you avoid interest charges that can take a chunk out of your budget fairly quickly while helping you to build a good credit history--that will later allow you to take more cards if you wish.
To answer your question, you can always start building a good credit history. Given your age and possible lack of credit history, you may find that you will not be approved for some of these credit cards. No one here can accurately predict your chances of success; there's just too much information credit card companies use to assess you as a credit risk and an analytical engine that sometimes produces uneven results when presented with similar facts.
If you decide you're going to start taking credit cards and you're getting offers in the mail, take a look at this thread in the MilesBuzz forum, http://www.flyertalk.com/forum/miles...-up-bonus.html, before you apply for any of those deals. The letters you're receiving are probably offering 30-40K for signing up. Read post #2 in that thread carefully, and you'll see that for the same credit inquiries, you'll qualify for at least 75,000 AA miles instead.
That post sets forth a method for qualifying for 225,000 miles in roughly three months, but the chances of success in getting all three cards required increase with a longer and stronger credit history. And, given that you're just getting started with credit cards, you'd probably be better off dipping your toe into the waters with one card, keeping in mind that no credit card is worth the bonus if you have to start paying interest charges. The general advice here is to pay your monthly balance off, in full, every month. That helps you avoid interest charges that can take a chunk out of your budget fairly quickly while helping you to build a good credit history--that will later allow you to take more cards if you wish.
Jul 12, 2011 | 6:47 am
#4
FlyerTalk Evangelist
Join Date: May 2001
Location: MSY; 2-time FT Fantasy Football Champ, now in recovery.
Programs: AA lifetime GLD; UA Silver; Marriott LTTE; IHG Plat,
Posts: 14,813
Really two questions here:
1. Should you get a credit card?
2. Which card should you get?
It's never too early to start building a good credit history. It's almost always too early to start building credit card debt. As noted above, you do not want to carry a balance. The interest charges add up very quickly. If you have the discipline to only charge what you have, and to pay the bill, in full, every month, then get a card. Besides building the credit history and earning rewards, having a credit card also makes it easier to rent a car or stay in a hotel.
If you do decide to get a card, look at interest and fees as well as types and amounts of rewards. The interest rate should be irrelevant, since if you pay in full every month then you'll never pay interest. (But if you will carry a balance and are ignoring the advice not to, then getting the lowest interest rate should be your primary/only concern).
Fees are important also. The majority of credit cards out there have no annual fee, but that's not true for mileage cards. The AA card fees run $50-85 per year or more. If you only charge a few hundred dollars per month, you won't be earning enough miles to make up for the fees you are paying. For example, $400/month would earn about 5K miles per year, it would take 5 years to earn that basic free domestic roundtrip ticket. So you'd be paying $250-425 in annual fees to earn a free ticket that you could probably just buy for that same money. For this amount of spend, you're better off with a card that just earns cash back.
If you're spending more, have the discipline to pay the card off every month, and especially if you have your eye on high end tickets (international business or first class), then the AA card may be a good deal.
1. Should you get a credit card?
2. Which card should you get?
It's never too early to start building a good credit history. It's almost always too early to start building credit card debt. As noted above, you do not want to carry a balance. The interest charges add up very quickly. If you have the discipline to only charge what you have, and to pay the bill, in full, every month, then get a card. Besides building the credit history and earning rewards, having a credit card also makes it easier to rent a car or stay in a hotel.
If you do decide to get a card, look at interest and fees as well as types and amounts of rewards. The interest rate should be irrelevant, since if you pay in full every month then you'll never pay interest. (But if you will carry a balance and are ignoring the advice not to, then getting the lowest interest rate should be your primary/only concern).
Fees are important also. The majority of credit cards out there have no annual fee, but that's not true for mileage cards. The AA card fees run $50-85 per year or more. If you only charge a few hundred dollars per month, you won't be earning enough miles to make up for the fees you are paying. For example, $400/month would earn about 5K miles per year, it would take 5 years to earn that basic free domestic roundtrip ticket. So you'd be paying $250-425 in annual fees to earn a free ticket that you could probably just buy for that same money. For this amount of spend, you're better off with a card that just earns cash back.
If you're spending more, have the discipline to pay the card off every month, and especially if you have your eye on high end tickets (international business or first class), then the AA card may be a good deal.
Jul 12, 2011 | 7:14 am
#5
FlyerTalk Evangelist
Join Date: Mar 2004
Location: SJC
Programs: AA EXP, BA Silver, Hyatt Globalist, Hilton diamond, Marriott Platinum
Posts: 34,036
By 23 I was through my BSEE, had a real job as an engineer and had at least one CC (may have been no more than that). 28 years later I've still never kept a balance on any card at any time. It can definitely be OK if one is disciplined. As to which card, only you can answer that.
Cheers.
Cheers.
Jul 12, 2011 | 7:36 am
#6
Senior Moderator and Moderator: American AAdvantage & TravelBuzz
Join Date: Nov 2007
Location: BOS
Programs: AA EXP, Marriott Titanium
Posts: 10,673
Welcome to FlyerTalk and the AA forum, jys55! 
Since your question doesn't pertain to AA or AAdvantage, we'll soon be moving your question (and subsequent responses) over to the Other Credit Cards forum for guidance from the experts there.
/JY1024, AA forum co-moderator
Since your question doesn't pertain to AA or AAdvantage, we'll soon be moving your question (and subsequent responses) over to the Other Credit Cards forum for guidance from the experts there.
/JY1024, AA forum co-moderator