First time credit card
 

Hey guys,

I just graduated from college this past spring, and I'm starting a new job that will involve a lot of travel next month, so I figured I should sign up for a card that would allow me to get a lot of rewards. Unfortunately, I've never had a credit card before in my life, which is hurting my ability to get one now. I tried to sign up for the SPG AMEX card, but was unfortunately rejected. In the rejection letter it said that my FICO score is 707.

So my question is, given my situation, what credit cards out there should I be looking at? Something with a nice sign-on bonus would be nice, but since I'm going to be racking up a lot of flights and hotel stays, I want a card that will help me earn good miles that way as well. Finally, how would I best go about getting approved for the SPG card? I feel like it would give me the most flexibility, and my future colleagues have recommended it.

Thanks in advance for your responses!

If you've never had a credit card before, you'll have trouble getting a rewards-card. Also, AMEX has one of the strictest requirements for charge cards (and credit cards).

I recommend a student card (it won't have rewards, nor will it have an attractive interest rate, but it generally comes w/o an annual fee).

Both my daughters got student credit cards when they turned 18. The younger one still has her, the older one had it automatically switched to a Gold Visa card w/ rewards.

Talk to your local bank, and ask them about student credit. They will most likely start you off with a small limit (500-1000), but if you use it responsibly, it will help you tremendously down the road.

You stated you never held credit before - I'm actually surprised you even have a credit score. Were you ever listed as an authorized user on your parents accounts?

Oh and welcome to FT :)

Thanks for the reply! I'm a little bummed because I keep getting pre-screened offers in the mail, but I guess it is what it is. Am I still eligible for student cards even though I've already graduated? I think the reason I have a credit score is because of student loans, which I've just started paying back, but I've never been an authorized user or had a credit card myself.

Your welcome!

Yeah you should still qualify for student credit cards. If they ask, tell them the name of your university, and say you graduate two years from now.. They won't actually check. (although they may request to see a student ID).

The student loans are a double edge sword.. They help you by building you a credit "history", however they hurt you because you have high debt to available credit ratio.

Will your employer be issuing you a card even though you are responsible for it? Most employers which require a lot of travel do so (and act as guarantors). No idea what you mean by traveling a lot, but you really do need a substantial credit limit if you are flying, spending nights in hotels, renting cars and even eating. In addition, when things go sideways, you need credit to handle getting you back.

Start with your employer

OP can find lots of info at www.creditboards.com Best wishes on the new job.

good student card to get is citi's mtvU

Hey Ben!

No worries. I've only been in the credit card game for a little more than a year now. It doesn't take long to be rewarded. Though, remember it's a marathon not a sprint!

1st Sign up with www.mint.com That's what I did and they recommended a basic citi card that I used for a good year to get my credit up. I'd work on one card for now just to get your feet wet. The rewards were minimal.

2nd Check out www.creditkarma.com It has a lot of great suggestions as well.

A year later I now have 4 different cards and I'm just getting started.

I signed up for a Delta Sky Miles Gold card in the airport ( Not the greatest deal but a deal nonetheless.) They generally have high acceptance rates in airports, or so I've been told. Once I was in the American Express System it's been fairly easy to be approved for both the SPG starwood preffered guest, and more recently the Premier Rewards Gold Card.

Don't rush. But don't sit on your ... either!

Best of luck man,

-Bud

Thanks for all your help guys! I emailed Brian over at thepointsguy.com for advice, and he steered me toward the Chase Freedom card, which I was thankfully accepted for, even though the sign on is not great at all ($100 cash back after $500 spend). I'll stick with it for a few months and try again with Starwood. Thanks again!

I recommend you wait more than a few months to try again with AMEX, only because of their strict approval criteria.

When you go to them, you wanna be like "look, I have had this credit card for a year (or longer maybe), I've always paid off the balance and was never late making a payment".

Have a little patience with Amex, but as long as you do a good job managing your first credit card, there's a pretty good shot Amex will approve you.
(In the end, they'll be worth it - I have never dealt with a more professional company than AMEX)

Btw - Best of luck on your new job!