Searching for intro credit card
Incoming S&T analyst. Expected TC 150k, savings of 20k, no debt. Don't have my own card but am an authorized user on my parents' -- think this counts for my credit score.
Will be in MCOL city and am heavy saver with limited expenses.Β Expect to spend 1300/month on rent and utilities, and then the rest on some basic furniture, groceries, dining/drinks, Target runs, and occasional plane tickets (say 4-6 times/year).Β Think I'll forgo a car this year and see how it turns out.
What cards do you recommend?Β Just starting to do introductory research and haven't worked out the math yet but torn between (1) cards with no annual fee/cash back and (2) Amex Gold.
Try something like the Chase Freedom or Citi Doublecash- both are very straightforward with no annual fee, and they should approve someone with limited credit as well. Get one, then get the other after a few months just so you have a few cards to establish credit history with.Β
Amex Gold is definitely worth the annual fee once you start spending over 6k a year on groceries and use the other benefits, but I'm not sure you will be approved given your limited credit histoy.
Thanks for the response.Β I think the Chase Freedom is the best among the cashback cards (3-5% back on everything within the first 12 months).Β Was also considering the Prime card as I'll be living next to a Whole Foods this upcoming year.
Even if I were to be approved for the Amex Gold (or another rewards card like the Chase Sapphire), do you think it'd be worth the annual fee?
Also am confused re: how many cards to have and how often I can cancel them.Β Tend to find the credit score manipulation gimmicks pretty annoying.
Don't cancel whatever card you open first. Your credit score is good. Like the above poster said, Amex is good for Groceries, and it gives, I think, 3% back on eating out. If you want to save, Amex has a cash blue preferred card, but the Chase Freedom is better and accepted more. Chase is a visa, so any Costco-type store will accept it. We just booked a summer rental, and they didn't take Amex due to the company's cost when a person uses Amex. I'd say get the Chase now and maybe the Amex in 6 months.Β
If you don't mind forgoing the new member benefit, you can always call Chase and ask them to upgrade you, and you don't lose your credit history.Β
Sounds like you'll have a good credit score, but Amex won't give you a high limit without a credit payment history. You have an emergency fund, but I always use my card to pay for something big get the points or cash back and then once it posts, pay it off in full. Some credit card hacking isn't detrimental if you are disciplined. In Finance/RE/M&A/Big4 Consulting, you'll find a wide array of people who are disciplined. You'll find the analyst making 150k have more in savings than a VP making 350k based on habits.Β
Also, both Chase and Amex have pre-approval soft credit pulls that you can do on their websites to see if you would be approved.Β
re: CSR, the $300 travel credit can net out against the $550 fee, so you need to be earning at least ~$21/month to break even.
If you use chase, chase freedom (1% with 5% quarterly categories)/freedom unlimited (1.5% on everything, 3% on dining) are good starts. Once you upgrade to the big Sapphire cards (preferred or reserve), they are still useful as points can be transferred and you earn in different categories.
Can't I just apply directly for the Sapphire Preferred card or does that require a lengthy credit history?
Also wouldn't I miss out on the welcome bonus?Β And so it makes sense to switch Chase < Amex thereafter?
You wouldn't swap cards out, but instead you could have both the Chase Freedom and the Sapphire Reserve at the same time, while getting the welcome bonuses on both. Chase does auto-deny you from getting any more credit cards if you have opened more than 5 in the last 24 months though. Don't worry about being loyal to Chase or AMEX, plenty of people maintain lots of open cards from both companies. If you were to open the Chase Freedom now, but wanted the Amex Gold later, then you should just leave the Chase Freedom open to get those perks and maintain the open line of credit. It doesn't hurt you to leave a no annual fee card open forever. I plan on getting my first credit card from Chase on the day after my birthday and leaving it open forever.Β
Please watch this video regarding credit card progression, I know it's for teens, but it gives a really good overview of credit card progression and benefits of cards at each price point.Β
Chase is also accepted more often than AMEX, so that's worth considering, especially if you shop at smaller stores.Β
what do you think of the Capital One SavorOne? 3% grocery and dining, 10% uber, plus the 200 bonus seems like the best deal in my Excel spreadsheet.Β Or is getting in the Chase ecosystem worth more going forward?Β
The Capital One Savor is great if you can't get approved via Chase or Amex, I think you have decent chances at the Chase Freedom.Β
Sapphire preferred and freedom plus combo and get a BILT card to earn points on your rent
down the line consider an amex plat if you travel alot
By Freedom Plus do you mean the Unlimited or the Flex?
Also is there anything special about the Chase package?Β I feel like Amex Gold would suit me better than Sapphire Preferred looking at the rewards.
personally I got the CSR+CFU combo and it's been decent enough, but need to revisit it and see if a flat cashback card is better
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