"I have a high 700s credit score. Should I include money my parents give me as income on my credit card application?" How can I maximize my chances of getting approved for a new credit card?

Hi Money Minder, I need some help with credit cards as a college student. I’m thinking about getting the Chase Freedom Unlimited, and I might have a pre-approved offer. Should I go for it? My current Discover card only has a $1500 limit that hasn’t increased. Should I ask for a credit line increase, even though it’s a hard credit check, and should I do it before or after getting another card?

Also, I’ve heard about the Capital One SavorOne card with 3% back on groceries, but I’m not sure if it’s worth not having a relationship with Chase Bank.

Current cards:

Discover it Student Cashback, $1500 limit, opened in May of 2023 (also an authorized user on Chase Sapphire Reserve for about 3 months)
FICO Score: just under 800
Oldest account age: 1 year 3 months (have had a Chase credit account for over 3 years)
Income: under $10,000 (summer only)
Average monthly spend and categories:

Dining $300
Groceries: $300
Other: $100

Open to Business Cards: No
Purpose of next card: Building credit further and cashback
Cards I’ve been looking at: Chase Freedom Unlimited
OK with category spending or general spending card: OK with either (I think, but not really sure)

I already have a Discover student credit card, got it over a year ago, with a credit score in the high 700s. I work summers making under $10,000, and I’m unemployed during the school year. Can I include money my parents give me in the income section when applying for another credit card (is this a good idea)? I’m considering the Chase Freedom Unlimited card, but I’m not sure if I’ll qualify. Any advice would be greatly appreciated!

Farewell,
College Card Seeker

Response from THE MONEY MINDER:

Hello There,

Congratulations on being proactive about your financial situation! It’s great that you’re considering another credit card to build credit further and earn cashback. Regarding the Chase Freedom Unlimited card, since you believe you have a pre-approved offer, it might be worth applying for it. With your high credit score and existing credit history, you have a good chance of approval. As for your Discover card, requesting a credit line increase could be beneficial in the long run, as it may improve your credit utilization ratio and potentially boost your credit score. However, you may want to consider doing this after getting another card to avoid any impact on your credit when applying.

In terms of the Capital One SavorOne card, the 3 percent cashback on groceries is definitely appealing. However, it’s essential to weigh the benefits of this card against potentially missing out on a relationship with Chase Bank, especially if you’re considering more Chase credit cards in the future.

Regarding your income, it’s generally recommended to include all sources of income, including money your parents provide, when applying for a credit card as long as you have access to those funds. This can help strengthen your application, especially if your primary income is seasonal.

Overall, it seems like you are on the right track with your financial decisions. Consider applying for the Chase Freedom Unlimited card, possibly request a credit line increase on your Discover card after obtaining the new card, and include all sources of income when applying. Keep up the good work in managing your finances!

Warm regards,
THE MONEY MINDER