Questions and Answers

Hi,

I am new here!

Let me begin with introducing myself. I am a 21-year-old recent college grad. I am in the process of looking for a job so in the mean time, I want to travel. I have some money saved up and would like to spend around $2,000. I have been reading a few of your blog posts and it mentions opening up different credit cards. I have a Chase credit card for quite some time now with a limit of $500. As mentioned, I don’t have a job yet so I doubt I will be able to get that limit increased any time soon. My average monthly spending is less than $100. I am very good with money and love saving. Do you have any advice? Should I open up a new credit card?

Thank you

I would concentrate on a free, cash-back card like the Citi Double Cash, Discover Card and/or Chase Freedom. Use the Discover & Freedom cards for the 5% bonus categories and the Double Cash for everything else. While “free” travel is awesome, so is being able to pay the rent and other bills. You don’t know how long it’s going to take to find a job and may wish you had that $2000 for other expenses. There may very well be differing opinions on that subject, but I’m rather more conservative in that sense and like to have my base established (a job, in this case) before I venture further afield.

Second [USER=184]@MidSouth Skier[/USER]. Even if an issuer approves you for a card now, it’s going to be with a paltry credit limit. Focus on the job search and apply for cards when you have a source of income. Good luck.

[USER=2523]@TheBeginner[/USER]: “average monthly spending is less than [U]$100[/U]” – is it a typo? If it is the real figure, then I have no idea how you manage to do it…….

And BTW, welcome [USER=2523]@TheBeginner[/USER] – we’re really not trying to give you a hard time. I’m guessing with expenses that low you’re still living at home. Concentrate on saving your money and maxing out your 401(k) once you get a job. You can find plenty of articles showing that saving money in the first 15 years of your career and letting compound interest take over will leave you with far more money than even waiting 10 years to start contributing to a retirement fund. It may sting a little in the early years but you will be so grateful for it later on.

My suggestion would be to find a job first and then delay your actual start work day by a few weeks and then take a trip before you start your new career. This time of year, if you’re thinking of Europe as a possibility, you will find bargain basement prices on flights and hotels. Do your research in advance and have your plans sorted out prior to landing the new job. As for the credit cards, after you get settled in with the new job, you can qualify for better card options. One thing to consider before you travel, you will probably need at least $1000 available credit to check into most hotels so you might pursue getting the credit limit on your current card raised. Even if you pay in cash for a room, they still want the credit card for check in. Good luck and congratulations on your graduation.

[QUOTE=”MidSouth Skier, post: 23177, member: 184″]I would concentrate on a free, cash-back card like the Citi Double Cash, Discover Card and/or Chase Freedom. Use the Discover & Freedom cards for the 5% bonus categories and the Double Cash for everything else. While “free” travel is awesome, so is being able to pay the rent and other bills. You don’t know how long it’s going to take to find a job and may wish you had that $2000 for other expenses. There may very well be differing opinions on that subject, but I’m rather more conservative in that sense and like to have my base established (a job, in this case) before I venture further afield.[/QUOTE]
Thank you so much for your reply! Currently, I have a Chase Freedom card. I will keep your advice in mind. Thanks again 🙂

[QUOTE=”Gaurav, post: 23184, member: 79″]Second [USER=184]@MidSouth Skier[/USER]. Even if an issuer approves you for a card now, it’s going to be with a paltry credit limit. Focus on the job search and apply for cards when you have a source of income. Good luck.[/QUOTE]
It’s so hard finding a job that I just want to travel 🙁

[QUOTE=”Daniel B, post: 23186, member: 1592″][USER=2523]@TheBeginner[/USER]: “average monthly spending is less than [U]$100[/U]” – is it a typo? If it is the real figure, then I have no idea how you manage to do it…….[/QUOTE]
It is not a typo lol. I have always been about saving money rather than spending it. I live with my parents and they don’t expect me to pay for rent, bills etc. as I don’t have a job yet.

[QUOTE=”Gia, post: 23188, member: 1566″]My suggestion would be to find a job first and then delay your actual start work day by a few weeks and then take a trip before you start your new career. This time of year, if you’re thinking of Europe as a possibility, you will find bargain basement prices on flights and hotels. Do your research in advance and have your plans sorted out prior to landing the new job. As for the credit cards, after you get settled in with the new job, you can qualify for better card options. One thing to consider before you travel, you will probably need at least $1000 available credit to check into most hotels so you might pursue getting the credit limit on your current card raised. Even if you pay in cash for a room, they still want the credit card for check in. Good luck and congratulations on your graduation.[/QUOTE]
Thank you Gia for your advice 🙂 I was actually thinking about traveling before my start date when I actually do get a job.I will keep that in mind and hopefully things turn out right 🙂

[QUOTE=”TheBeginner, post: 23214, member: 2523″]It is not a typo lol. I have always been about saving money rather than spending it. I live with my parents and they don’t expect me to pay for rent, bills etc. as I don’t have a job yet.[/QUOTE]
That is wonderful that you have such a supportive family! I am very happy for you! When our elder son came back to do his graduate studies, he lived with us for 3 years, and we also felt blessed that we were able to help him. I also taught him all the things I have learnt over the years about amassing airline airline points, and I am happy to see that he has become an expert in this.
Did you know that by being an authorized card user on your parents’ credit card (and using that card), you can achieve a great FICO score (provided that parents have that good score). Our younger son who is in college, has the same great score as us, even though he never had a paid job, but always used our credit card. If I were you, I would make sure that you have such a card, and ask them to let you use YOUR card when you are with them when doing grocery shopping, buying gas etc etc. The banks’ tracking will capture that YOU used your card, and will get a boost of your FICO score.
Then, when you get your first job and will apply for a credit card, hopefully with a great FICO score (which you achieved being an authorized cardholder), AND a regular job, there should be no problem getting your first card and start collecting miles.
What you can do right now is (take AA as an example): 1) set up an AAdvantage dining profile, get 1,000 AA miles if you dine within 30 days and spend $30 (sometimes the bonus is even higher – I signed up when it was 2,000). That is in addition to the 3-5 miles/$ spent in those restaurants. Two of my favorite local small restaurants are on that list, and I ALWAYS make AA miles by eating there (which I would do anyway). If you complete a short rating (review), you get another 5 miles.
2. Signup for eShopping (every airline has one). Then whatever you want to buy whether online or let’s say at Walmart or Autozone, Macy’s or HomeDepot, you should log into that eShopping account, and link FROM THERE to the merchant’s website and complete the transaction. If you remember that, you can make a lot of miles for really free (provided that you would buy those things anyway). When your parents want to buy something online, I would volunteer to help, and just go through these shopping portals. To give you an example: a month ago we ordered something from Macy’s for $100. Using my AA card I got 100 AA miles. BUT – because I went through the AAdvantage shopping portal, which on that day offered 12 AA miles/dollar spent, I got an ADDITIONAL 1,200 AA miles!!! If your family ever using Booking.com to book your hotel rooms, if you first go through AAdvantage shopping, you get 2 miles/$ spent. See how easily the miles add up?
Sorry this message is so long, but I really appreciated that way you communicated with us.
I also encourage you to contact this forum with any questions you have. The folks here on this blog, whether the PRO OMAAT team like Tiffany, Gaurav, and the others, or the volunteers like MidSouthSkier, David W, and dozens of others are incredibly helpful. They are all wonderful people judged by their helpfulness. I have certainly learnt a tremendous amount from them. Because of their attitude of helping us with their expertise, I myself have become hooked on this website, and try to contribute if I can.

Thanks for the kind words [USER=1592]@Daniel B[/USER] but I’m just a volunteer too :).

[QUOTE=”Gaurav, post: 23231, member: 79″]Thanks for the kind words [USER=1592]@Daniel B[/USER] but I’m just a volunteer too :).[/QUOTE]
Fooled me 🙂