My Background

I first came to the US in early August 2016 and got my SSN that same month. My credit history started in October 2016, so at this point it has been 11 months. The credit cards I currently have are: Discover it, Capital One Journey (later converted to Quick Silver), Chase Freedom, AMEX Hilton Surpass, Chase Sapphire Prefer, Chase IHG

My total credit limit is over $30,000, so I’d say I’ve finally gotten started in the credit card world. Today I want to share my experience.

My First Exposure to Credit Cards

Because my school was located in a rural area and getting around was inconvenient, the first thing I wanted to do after arriving in the US was get a driver’s license. But because my I-20 had not expired, I was not allowed to take the test. Feeling frustrated, I ended up accompanying a friend through the whole process, from getting a driver’s license to buying a car. Buying a car naturally meant buying insurance as well.

That gave me my first chance to learn about credit cards: the AAA credit card. The first time I saw a card offering as much as 3% cash back, I thought it was pretty amazing, especially with the insurance manager strongly promoting it. So right after I got my SSN, I applied for the AAA credit card. Unsurprisingly, I was denied.

After that, BofA mailed me an opportunity to apply for a security card, but after seeing all the harsh requirements, I decided not to pursue it. For a while after that, I stopped thinking about credit cards altogether. Even though I wasn’t approved, I still learned a little about how the credit card application process works, which laid the groundwork for applying for my first real credit card later.

My notes:

  • Starting from zero: understanding credit cards: US credit cards come with many benefits, such as cash back, purchase protection, and the ability to build your credit score, which can help later when buying a house or car. If you want a general introduction, this is a good place to start.
  • The US credit card application process: Learn how to fill out a credit card application, what to put for income, how to list your occupation, and what SSN means.

My First Credit Card

Later, a friend said he wanted to refer me to Discover. I had never really heard of Discover before, but since he kept bringing it up, I felt bad saying no, so I applied. At the time, I didn’t know what a Hard Pull was, and I didn’t know what impact applying would have. I assumed it was like back home, where having a job and income meant you could just apply. Fortunately, I didn’t apply for a bunch of cards randomly. So I followed the process and successfully got a Discover credit card from a brand I had never even heard of before. (I guess most people only know Visa, Master, and UnionPay.)

The specific process for applying for Discover was to go through the application link and fill in my information, including SSN, address, phone number, and other personal details. I also had to enter income information. It’s best to be truthful; usually it’s fine to put a slightly higher number, since that helps determine your Discover credit limit. For immigration or work status, if you are a student (including students with on-campus jobs such as Research/Teaching assistant), select student. Otherwise, choose the category that applies to you. If your application is approved, Discover may ask you to verify your address. You only need to provide something like a bank statement showing your address. If you’re new and don’t yet have a bank statement, you can directly scan or photograph your SSN and send that in instead (that’s what I did).

Discover IT信用卡【7/20更新：新增SSN保护和新账户提醒福利】

That’s how I got the card pretty quickly, with a credit limit of 1500. As soon as I received it, I started researching its features. When I saw 1% cash back, I was blown away. 1% cash back!? As I kept searching online, I discovered even more hidden perks, for example:

  • If you apply through a friend’s referral link, there is a $50 signup bonus, and you can get another $50 in the second year. So I don’t recommend using the official website link (no bonus) or an Amazon ad (only $75).
  • 5% rotating quarterly categories, all cash back doubled in the first year, a $20 annual good student reward, Discover deal, free Kohl's $10, and $10 off by linking your Amazon account to 1-click, etc.
  • Other than Discover not being accepted as widely in the US as Visa or Master, this card is almost a superstar card. (In fact, acceptance is already quite broad. UnionPay is generally not accepted for payment in the US, but in many places UnionPay cards can still be used for cash withdrawals.) More importantly, all of the rewards above are doubled in the first year!

My notes:

Basic Credit Card Knowledge

After getting your first credit card, you definitely need to understand some basics and common terms. For example:

  • Credit limit: the maximum amount of credit available to you
  • Available Credit: how much credit you still have left to use
  • Account Balance: your balance, meaning how much you have already spent
  • Statement: your billing statement, a document describing your total balance and transactions
  • Statement Closing Date: the date your statement closes, meaning when the statement is generated
  • Due Date: the payment due date, meaning the latest date by which you must pay your balance; no fee is charged if payment is made by this date

The most important thing is knowing how to make payments. The basic process is: link a checking account, then set up an automatic payment date each month for autopay. (Ideally, this date should be before the Statement Closing Date, and it’s also best not to pay off the entire balance all at once.) For example:

  • My statement comes out on the 10th of every month. Suppose I spent $1000 this month. I could choose to make an automatic payment on the 9th for $950, leaving a $50 balance. Then your statement would show that you owe $50, and it would also show a due date (roughly 30 days after the statement is generated). As long as you pay off that $50 before the due date, you’re fine. The reason to pay $950 before the due date is to avoid having the full $1000 appear on your statement, which could make your balance look too high and have a negative effect.

Also, if you see an ATM, it’s best not to use your credit card for cash advances, because the fees and interest are very high.

My notes:

Summary

This article is meant to provide beginners with a reference point, including how to avoid applying for the wrong credit cards, what to pay attention to when applying for your first card, application methods, and basic terminology.

For anyone who wants to apply for a credit card, or who has just been approved for one, my suggestion is to take it step by step. Don’t apply blindly, and learn as much as you can from other people’s experience.