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16,000 line of credit on this card just pushed my fico score up +6

bears09 said: I want to emphasize what Wildstar said about being a student. I called again today (see my earlier post) to ask a few more questions about my rejection. The analyst (a very nice person, which seems to be the trend) assured me that I have excellent credit, but they have pretty hard limitations on how many cards FIA will issue to students. I have a BofA card with a modest credit limit, and she was not able to re-allocate some of that line for a new Schwab card. But she said I should have no problem applying once I am no longer a student.

So my advice is, if you can justify yourself as something besides a student (say you work part time or are self-employed), do that and you'll have a much better chance of getting approved.


I think the whole point of this for Schwab is to draw new customers into their brokerage to make trades ($$$ for Schwab). If you don't have disposable income, you aren't going to invest. It makes sense that they are inclined against students.

Wouldn't you want to open these accounts at virtually the same time for the FICO score purpose? The number of pulls in a short time period does not change the FICO score too much, but if you separate them out to a much later time, your FICO score would be lower for a longer time.

xoneinax said: wildstarUD said: I had two pulls when I opened my accounts way back when. I was pulled for the checking account, and then a few days later for the ONE account. It was through Equifax.That could potentially mean 3 hard pulls. With all the AA going on these days, new pulls will certainly be scrutinized. I will just get the CC and nothing else for now.

After three days of "check back in 48 to 72 hours" I got approved!

$10k CL

Going to UK on 17th, so this is great.

Pity I'm getting whacked by my employer on Wednesday. Oh well!

My wallet will be lighter. Sock drawering my Fido and Citi Div. cards.

I would say the reason they are so against students is the same as every CC company: students typically have less money so they spend less money. That means the CC won't be making a lot of money off interest and too many students are irresponsible and simply can't pay for what they charge.

UPDATE: The pull for the CC just showed up and was through EXPERIAN (FIA CSNA). So Schwab will pull twice through Equifax for the checking and brokerage, and FIA will pull once through Experian for the CC.

Another question about this card, if anyone knows yet: is there an online payment option to "pay balance in full on due date"? One thing that has always bothered me about the FIA/MBNA cards is that the only automatic payments you could set up are minimum required and a set amount, not the full balance. If you want to pay the balance in full, you have to go in and manually set it up each month.

I know that Citi and USAA have the 'pay balance in full' option and it is much more convenient.

After 3 hard pulls, how many points in your credit score have been lost? Thanks!

liuandy said: After 3 hard pulls, how many points in your credit score have been lost? Thanks!

12.8 points unless the pulls are on Wednesday than it is 13.2

Interesting footnote from the WSJ article on this CC, .....this expiration might apply to credits on other reward cards too. So I guess it doesn't hurt to ask for the built up credit every year or so on all credit cards.

"With the new Schwab card, customers earn one point for every dollar in purchases. Points are converted into cash rewards that are equal to 2% of the total eligible points balance; so someone who spends $1,000 a month would earn 1,000 points and get $20 Cash Back. The cash rewards are deposited into the brokerage account each month, which customers can use to invest or withdraw by writing a check or using a debit card. Cash rewards that aren't redeemed will EXPIRE after five years. There are no minimums to open the brokerage account."

I hadn't seen this before on my other rewards. Kind of a small point, but maybe it will help someone.

Thanks OP.

liuandy said: After 3 hard pulls, how many points in your credit score have been lost? Thanks!
My FICO score rose from 783 to 789 with the new $16,000 line of credit (even with the credit pull).

fatweah said: Wouldn't you want to open these accounts at virtually the same time for the FICO score purpose? The number of pulls in a short time period does not change the FICO score too muchThese are not mortgage related pulls. Adverse Action looks at all recent requests for credit, and all recent pulls will be clearly visible.

bamadad said: Interesting footnote from the WSJ article on this CC, .....this expiration might apply to credits on other reward cards too. So I guess it doesn't hurt to ask for the built up credit every year or so on all credit cards.

"With the new Schwab card, customers earn one point for every dollar in purchases. Points are converted into cash rewards that are equal to 2% of the total eligible points balance; so someone who spends $1,000 a month would earn 1,000 points and get $20 Cash Back. The cash rewards are deposited into the brokerage account each month, which customers can use to invest or withdraw by writing a check or using a debit card. Cash rewards that aren't redeemed will EXPIRE after five years. There are no minimums to open the brokerage account."

I hadn't seen this before on my other rewards. Kind of a small point, but maybe it will help someone.

Thanks OP.


From Schwab's FAQ's:

What happens if I don’t link my Schwab One account to my Schwab Bank Invest First card?
Your credit card account will continue to accrue 2% Cash Back rewards on purchases, and we will hold your cash-back rewards for up to five years. Cash rewards that are not redeemed will expire after 5 years. Once you link your Schwab One account to your credit card account, your cash rewards will automatically be deposited into the account at the end of every month.


So, this should only matter if you don't link the card to the brokerage account.

beethovengirl said: WSJ has an article on this CC:
http://online.wsj.com/article/SB122834640257277379.html

The article claims that the card has no forex fees.
Can someone verify that it is 0%, not 1%? The T&C of the card doesn't mention international transactions.

Anyone see a credit limit higher than $16K on the Schwab credit card?

Happy Guy: is the Wednesday comment serious?

HappyGuy said: liuandy said: After 3 hard pulls, how many points in your credit score have been lost? Thanks!

12.8 points unless the pulls are on Wednesday than it is 13.2

If initially you want to sign up just for the card you will get only one pull ??? Then you could decide when to sign up for the other things after you know if card was approved?

DavidScubadiver said: Thank you for submitting an application for a Schwab Bank Invest First™ Visa® credit card. Your business is appreciated and careful consideration is being given to your request, but an instant decision cannot be provided at this time.

You can check the status of your credit card application on schwab.com/credticard. Please give us 15 minutes to review your application before checking the status.

All credit card applicants will receive a written response within the next 30 days.

Next Steps. If you do not have a Schwab One® brokerage account, please apply for your brokerage accoung after you receive your credit card decision. Call us at 877-713-8381 or go online to open a Schwab One brokerage account to receive your cash rewards.

If you would like to continue opening your Schwab One acount at this time, apply now.

The Schwab One brokerage account has no monthly service fees, no minimum balance requirements, low-cost trading, plus 24/7 online and customer support.

Eta: Just go back to the original application page and use the right hand pane's "Application Status" link, as the web page they direct you to above, does not exist. They told me to check back in 48-72 hours (I have credit problems with so many inquiries).

duna said: If initially you want to sign up just for the card you will get only one pull ??? Then you could decide when to sign up for the other things after you know if card was approved?

Probably the smartest thing to do if you are worried about not being approved. Otherwise you may get denied from the card, but then have a checking and brokerage account along with 3 pulls. It would kinda defeat the purpose if you can't get the card unless you getting the banking accounts anyway.

Yes, you must open up a brokerage account within 5 years though.

Is it me or does $12.95 per trade seem like a lot?

yauser said: Is it me or does $12.95 per trade seem like a lot?

I wouldn't call it as good as the discount online brokers, but I would call it average. It is about the same as TD Ameritrade, Fidelity, etc. Check out the comparison chart at Scottrade.. they do a good job of comparing the price for each of the major online brokers.

www.scottrade.com/online_broker_comparison/discount_brokerage_co...

I'm thinking about doing this but am still confused about a few things.

1] I have to open a checking and brokerage account? What's a brokerage account anyway? The checking account accumulates interest? I've never see a Schwab ATM before... so putting money in/taking it out would be a problem.

2] Some guy said you can just open a brokerage account and not make an initial desposit, would this be ok?

3] So the Cash Back is deposited to your brokerage account automatically? Can it be used as a statement credit too?

This 2% everyday would go nice with my PenFed 5% gas... hmmm..

You can just open the checking and brokerage if you want together..you don't have to use the brokerage....though the Cash Back would be deposited in the "core account" that they automatically set up in the brokerage (just pays .10% interest, though)

You can also open Investor Checking if you want..that pays 1.5% interest and is a full BANKING PRODUCT with free checks, free bill pays and UNLIMITED ATM REBATES so you can use every atm in the world for free (except for the 1% foreign currency exchange fee Visa charges overseas, of course, but that doesn't apply to US withdrawals of course)....so no problem getting at money from it....

A brokerage account is for INVESTING..like stocks, etfs, mutual funds...that kind of stuff...the core is where cash sits until you invest it (if you want to invest it) you can also transfer money out to linked banks from the brokerage account...

PhrostByte said: I'm thinking about doing this but am still confused about a few things.
1] I have to open a checking and brokerage account? What's a brokerage account anyway? The checking account accumulates interest? I've never see a Schwab ATM before... so putting money in/taking it out would be a problem.

You don't have to have both brokerage and checking. The brokerage account is required for the rebates. I only opened a brokerage account.
PhrostByte said: 2] Some guy said you can just open a brokerage account and not make an initial desposit, would this be ok?
Speaking of initial deposit, the rep told me from some time this April, the initial deposit requirement was removed. Hence, no deposit is needed. However, he also told me that the account may be under review if there is no activity after one year or so.
PhrostByte said: 3] So the Cash Back is deposited to your brokerage account automatically? Can it be used as a statement credit too?
Don't think statement credit is an option.

I also applied for the Schwab cc earlier this week and waited 5 days for a decision. The application status website still says that the app is pending but I called the 800 number and was told that the card was approved for 16K but hadn't been released yet.

I talked to a Schwab rep on Thursday and he told me that the 2% card program was only released this week and that is why FIA is being extra slow in issuing formal approvals of the apps.

Comparing all of the brokerage-banking-credit packages that are available now, Schwab isn't too bad. Sure the 12.95 per trade is a chunk of change, but the ATM rebates and the lack of a forex charge on the CC should even up things over time.

craig10x said: You can just open the checking and brokerage if you want together..you don't have to use the brokerage....though the Cash Back would be deposited in the "core account" that they automatically set up in the brokerage (just pays .10% interest, though)

You can also open Investor Checking if you want..that pays 1.5% interest and is a full BANKING PRODUCT with free checks, free bill pays and UNLIMITED ATM REBATES so you can use every atm in the world for free (except for the 1% foreign currency exchange fee Visa charges overseas, of course, but that doesn't apply to US withdrawals of course)....so no problem getting at money from it....

A brokerage account is for INVESTING..like stocks, etfs, mutual funds...that kind of stuff...the core is where cash sits until you invest it (if you want to invest it) you can also transfer money out to linked banks from the brokerage account...


Wow ok, thanks for the response. A few interesting points. If I won't be doing any investing.. sounds like I should probably open all 3 accounts. You said by default the Cash Back goes in the brokerage account. Can I change it to the checking account instead? The checking account has better Cash Back than the brokerage account I assume?

Ok about using ATM's, right now I just use my Bank of America account/ATM's since there are so many. You're telling me that not only will Schwab not charge me extra to use any ATM but they will refund the fee's that the ATM's charge when removing money? Can I also deposit checks for free? If so, seems like I don't even need a Bank of America account anymore. (Free ATM usage + Cash Back > Only free BoA ATM usage + no Cash Back).

This sounds too good to be true there's gotta be some kind of catch. :]

PhrostByte said: craig10x said: You can just open the checking and brokerage if you want together..you don't have to use the brokerage....though the Cash Back would be deposited in the "core account" that they automatically set up in the brokerage (just pays .10% interest, though)

You can also open Investor Checking if you want..that pays 1.5% interest and is a full BANKING PRODUCT with free checks, free bill pays and UNLIMITED ATM REBATES so you can use every atm in the world for free (except for the 1% foreign currency exchange fee Visa charges overseas, of course, but that doesn't apply to US withdrawals of course)....so no problem getting at money from it....

A brokerage account is for INVESTING..like stocks, etfs, mutual funds...that kind of stuff...the core is where cash sits until you invest it (if you want to invest it) you can also transfer money out to linked banks from the brokerage account...


Wow ok, thanks for the response. A few interesting points. If I won't be doing any investing.. sounds like I should probably open all 3 accounts. You said by default the Cash Back goes in the brokerage account. Can I change it to the checking account instead? The checking account has better Cash Back than the brokerage account I assume?

Ok about using ATM's, right now I just use my Bank of America account/ATM's since there are so many. You're telling me that not only will Schwab not charge me extra to use any ATM but they will refund the fee's that the ATM's charge when removing money? Can I also deposit checks for free? If so, seems like I don't even need a Bank of America account anymore. (Free ATM usage + Cash Back > Only free BoA ATM usage + no Cash Back).

This sounds too good to be true there's gotta be some kind of catch. :]


No, I don't believe you can have the Cash Back automatically put into your checking account. It is really easy to transfer the money from your brokerage to checking account online however.

Yes, they will refund you the fee you pay to use any bank's ATM.

Checking account interest rate is 1.5%, brokerage is 0.1%

You can deposit checks for free, but not through an ATM. You have to deposit them at the branches or mail it in.

yauser said: Is it me or does $12.95 per trade seem like a lot?

Yes it is a lot for a trade, but that $12.95 you pay isn't just for the trade, it is for the 24 hour customer support for when you have a question about your account at 3am on a Saturday.

As far as I know the only premium discount brokers that have 24/7 (excluding holidays) telephone support is TD Ameritrade ($10 trades, but can jawbone them into $7 trades), Fidelity ($20 trade for under $50k in account $12 for over $50k but under $1 mil), and Charles Schwab ($13 for under $1 mil). Each has their own feature set that separates them from one another.


If all you care about is cheap trades, then you these brokerages aren't for you.

Schwab's customer service is excellent. Quick to answer day or night and extremely polite and helpful. When I called the other night about only getting approved for $1K on this card, the CS went out of his way to try and make sure I was happy. Even apologized a ridiculous amount of times for the 1 minute hold I was put on so he could get a financial guy on the line for me. I've called about all kinds of questions and they are always happy to help, no matter how stupid the question. I've also found the staff in the physical locations very friendly as well. I look like a bum when I roll into the one here in Boston. I usually will run over on my break from classes (grad school) in sweats. I walk in their and they always treat me like one of their best clients. Now that Citibank is dic*ing me around, I may use them as my only bank. If only they had business checking...........!

This or the Chase Freedom... hmm *rubs chin*

ngreen said: DavidScubadiver said: Thank you for submitting an application for a Schwab Bank Invest First™ Visa® credit card. Your business is appreciated and careful consideration is being given to your request, but an instant decision cannot be provided at this time.

You can check the status of your credit card application on schwab.com/credticard. Please give us 15 minutes to review your application before checking the status.

All credit card applicants will receive a written response within the next 30 days.

Next Steps. If you do not have a Schwab One® brokerage account, please apply for your brokerage accoung after you receive your credit card decision. Call us at 877-713-8381 or go online to open a Schwab One brokerage account to receive your cash rewards.

If you would like to continue opening your Schwab One acount at this time, apply now.

The Schwab One brokerage account has no monthly service fees, no minimum balance requirements, low-cost trading, plus 24/7 online and customer support.

Eta: Just go back to the original application page and use the right hand pane's "Application Status" link, as the web page they direct you to above, does not exist. They told me to check back in 48-72 hours (I have credit problems with so many inquiries).

I'm pretty much in the same boat. I'm really hoping I can get this card as I'm worried my Countrywide Visa 2% will end any time. If not I'll apply through the wife but she doesn't always enjoy me applying for cards for her all the time (AORs, etc).

I already have a Checking and Brokerage account (the checking account is great, I've been using it for close to a year).


I too have the CW rewards card and am worried it will go away some time next year. I have a pretty generous line of $24K. What kind of lines are people getting with this Schwab card?

I think the most anyone reported was close to 20k. I only asked for 10k when I called after submitting my app. I was instantly approved when I filled out the app.

I got 10K, it was moved from my BoA Pet Rewards card.

Ok about using ATM's, right now I just use my Bank of America account/ATM's since there are so many. You're telling me that not only will Schwab not charge me extra to use any ATM but they will refund the fee's that the ATM's charge when removing money? Can I also deposit checks for free? If so, seems like I don't even need a Bank of America account anymore. (Free ATM usage + Cash Back > Only free BoA ATM usage + no Cash Back).

This sounds too good to be true there's gotta be some kind of catch. :]


You're very welcome...by the way

And yes, that is right...not only doesn't Schwab charge you for using any atm but they refund all the surcharge fees the other bank will charge...regardless of the amount.....
You can mail checks to them to deposit.....but what you might want to do is continue using your BOA Checking for the local check/cash deposits and then use Schwab's ACH Transfer system to move it over from BOA to Schwab Brokerage Account...from there, you can easily move it into the Checking...

And yeah, i don't think they will put it directly into the checking (the cash rebate on the credit card) but it is very easy to move it online from the "core" in the brokerage to the Schwab Investor Checking......
You could actually do all your day to day banking from the Schwab Investor Checking, as you get free unlimited checks and also free Checkfree Bill Pay as well

So, to answer your question...No "catch" at all....now, initially the other bank takes out the fee...but at the end of each month's statement cycle, Schwab re-credits all the fees for the month.....
You can also check your balance for free and use it as a debit card as well!

For those wanting the CashBack to go directly to your checking account, there is a possible way you can do that. You can setup a minimum. cash balance on your checking account and it will transfer cash from your brokerage account (as available) to your checking account to try to keep that minimum balance. I am assuming that if you set that minimum balance high enough, every time the CashBack hit the brokerage account it would automatically transfer to your checking account leaving a $0 cash balance in your brokerage account.

craig10x said: And yes, that is right...not only doesn't Schwab charge you for using any atm but they refund all the surcharge fees the other bank will charge...regardless of the amount.....
You can mail checks to them to deposit.....but what you might want to do is continue using your BOA Checking for the local check/cash deposits and then use Schwab's ACH Transfer system to move it over from BOA to Schwab Brokerage Account...from there, you can easily move it into the Checking...


This is very close to the setup I have. I have about 10 Schwab accounts (IRAs and ESAs for the family) and have had a Schwab "checking" account since they had the "Access" account before they opened their bank. For some reason, I don't like mailing my deposits. I open a local BoA checking account that I use for deposits and occasional ATM withdraw. As you mentioned, I use Schwab's ACH Transfer to move money between the two. I had some stock that I planned on hanging onto for a while so I also opened a BoA investment account and put that stock into that account to qualify me for the free Accolades credit card and free Priority Pass card for airport lounge access. This gave me a few nice perks and a little diversity from Schwab with local access.

All in all, I have been very happy with Schwab and this new 2% card will make a nice addition.

I got approved for this after waiting a couple days - I spoke to an analyst. They saw I had another BofA card and offered to move some of the credit limit to here, which I was fine with.

To summarize, I think this is accurate on Schwab vs. Fidelity:

Schwab CC w/ Schwab One:
2.0% CC, credited monthly to brokerage account
1.0% charged as foreign conversion fee on ATM withdrawls
$2K ATM daily withdrawal limit

Fidelity CC w/ Fidelity mySmart Cash:
1.5% CC, but you need to redeem when you reach 5K "points" ($75)
0% foreign conversion fee (the terms say 1%, but people report 0% on statement)
$500 ATM daily withdrawal limit
Generally acknowledged to have better web interface and fast ACH push/pull

Any other points of comparison between the two?

dewolfxy said: Any other points of comparison between the two?

Good summary, thanks.

One other point: Schwab cc/ATM are both VISA. Fidelity cc is MC, ATM is VISA. I've actually been to places (outside the US) that take either MC or VISA but not the other, so having both cc is useful.

I have the older Fidelity MC that does not use points -- straight cash 1.5% into my Fidelity account every quarter, no action on my part necessary.

Has anyone used the Schwab ATM card outside the US? Any actual reports on exchange rate, fees, etc? I've used the Fidelity ATM card a lot outside the US, and not only are there no separately listed fees, the exchange rate is always excellent, better than other cards I've tested.

Applied on Friday and got approved instantly, CL of just 4k but that is plenty for me. I will ask for more anyway when I activate. It's great that it's VISA because my other CC's are MC. Also got the Investor Checking w/Schwab One. This is my first brokerage. Need to hit the books about investing now.

UncaMikey said: dewolfxy said: Any other points of comparison between the two?

Good summary, thanks.

One other point: Schwab cc/ATM are both VISA. Fidelity cc is MC, ATM is VISA. I've actually been to places (outside the US) that take either MC or VISA but not the other, so having both cc is useful.

I have the older Fidelity MC that does not use points -- straight cash 1.5% into my Fidelity account every quarter, no action on my part necessary.

Has anyone used the Schwab ATM card outside the US? Any actual reports on exchange rate, fees, etc? I've used the Fidelity ATM card a lot outside the US, and not only are there no separately listed fees, the exchange rate is always excellent, better than other cards I've tested.

New Fidelity 1.5% cc's are Visa. The do not offer a MC anymore.

One big thing with Schwab is that it is a real bank. This means the routing number translates to Schwab and not to UMB Bank like Fidelity's does. I've had some issues with large ACH where they call UMB to approve but they won't approve it because it isn't a real account at UMB. Another thing is that Schwab does mail-in deposits of any checks made out to you, and you can easily order envelopes and deposit slips online, Fidelity will only accept mail-in checks made out to Fidelity.

Personally, I use Fidelity for my every day banking, primarily because I hold a money market fund which pays more than Schwab's checking, and thier ACH system is awesome for managing tons of accounts.

I have a $0 balance in my Schwab brokerage account and have had it that way for over a year. I've never been hit with a fee or anything. I keep ~$500 in the checking account.

I'm pretty sure my app got denied for a locked EXP report, but I haven't gotten the letter yet. I have 5 BOA/FIA cards (2 BOA, 3 FIA) as well, so maybe it was for that, but there was no credit pull done. I will gladly re-allocate if they will allow me to. Although I hit the 5000 points every few months on the Fidelity card, it is kind of a pain to request the cashout and I wish it was monthly.

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