If I were to apply again, this is how I would save money

[fourandtwo]

Around or before April, I would apply for 2 credit cards with promotions that award travel miles after you spend a certain amount. I personally like the southwest credit card (60,000 miles after you spend $3000 wthin 3 months) and chase united mileage plus (65,000 miles after you spend $3000 within 3 months).

These credit cards usually take ~1 month to get approved. Once the application cycle rolls around in May, use these credit cards to pay for everything. Primaries, secondaries, home bills, etc. Have your parents or trusted friends use your credit card to pay for stuff if necessary and just have them pay you back. With just a bit of effort, you can spend the minimum amount needed to gain those miles.

When interviews roll around, you can now enjoy those free miles to travel to your schools. 125,000 miles can get you about 4 round trips or 8 one way trips. It's better to think about them in terms of one way trips because you want to be able to plan your interview trail back to back so that you don't have to fly back home. You can potentially go to 7 free interviews using this method!

Lastly, I really liked using southwest when interviewing last year because they are super flexible and allow you to change or cancel flights within 2 hours of your flight's departure. So as my IIs rolled in, I was able to change my flights so that I wouldn't have to fly back home, saving money and time.

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[calivianya]

Honestly, I wish I'd done this myself.

I like Delta, so I just got the Delta Gold Amex a few weeks back. Instant zone 1 boarding on all flights and first bag checked free, plus I'm accumulating miles. Totally worth the annual fee. I plan to put every single expense I have for the next four years on this card, so once the residency interviews roll around, hopefully at least a few of my flights will be free.

I really, really, really can't overstate how much I wish I'd gotten the card before I did all the flying I've done since October. The zone 1 boarding alone would have saved a lot of anxiety... there's still space in the overhead compartments if you board zone 1, but if you board zone 3/4, odds are you're going to have to check that larger carry on bag.

Can't even tell you guys how much anxiety I had checking my bag with my interview suit in it. The thought that the airline could misplace my checked bag and I'd have to be scrambling at a mall to buy ANOTHER interview suit at the last minute... 😱

 

[SpoiledMilk]

Would like to add that for traditional applicants without much of a credit history, getting approved for those promotional credit cards will be very difficult.

For those who want to start building their credit history while still a freshman, sophomore, or junior, get your parents to let you become an authorized user on their credit card account. This way, you can hitchhike on your parents' good credit while building your own history.

So when the time comes to apply for those promotional cards you will have a good credit history and your chances of approval are dramatically increased.

 

[fourandtwo]

Would like to add that for traditional applicants without much of a credit history, getting approved for those promotional credit cards will be very difficult.

For those who want to start building their credit history while still a freshman, sophomore, or junior, get your parents to let you become an authorized user on their credit card account. This way, you can hitchhike on your parents' good credit while building your own history.

So when the time comes to apply for those promotional cards you will have a good credit history and your chances of approval are dramatically increased.

True, I hadn't thought of this issue for traditional students. I assumed that because I hardly carry cash anymore, the same applies to college students 😛

 

[calivianya]

Would like to add that for traditional applicants without much of a credit history, getting approved for those promotional credit cards will be very difficult.

For those who want to start building their credit history while still a freshman, sophomore, or junior, get your parents to let you become an authorized user on their credit card account. This way, you can hitchhike on your parents' good credit while building your own history.

So when the time comes to apply for those promotional cards you will have a good credit history and your chances of approval are dramatically increased.

Definitely on the authorized user part! My parents had me as an authorized user on a card when I was 16. I got my first credit card in my own name at 18, used it responsibly and paid it off in full every month, and my credit score was a hair over 800 by the time I hit 23/24, which is when most people apply to med school.

You don't have to be a nontrad to have good credit; you just have to have decided good credit was something that's important to you and put the effort in. And you have to have decided to work a job. If you've just been living on campus and riding your student loans for undergrad without getting a job, you're going to have trouble with things requiring credit when you get out... it's just a fact of life that credit card companies don't like people who report $0 for annual income.

 

[BuckStrickland]

Around or before April, I would apply for 2 credit cards with promotions that award travel miles after you spend a certain amount. I personally like the southwest credit card (60,000 miles after you spend $3000 wthin 3 months) and chase united mileage plus (65,000 miles after you spend $3000 within 3 months).

These credit cards usually take ~1 month to get approved. Once the application cycle rolls around in May, use these credit cards to pay for everything. Primaries, secondaries, home bills, etc. Have your parents or trusted friend use your credit card to pay for stuff if necessary and just have them pay you back. You can easily spend the minimum amount needed to gain those miles.

When interviews roll around, you can now enjoy those free miles to travel to your schools. 125,000 miles can get you about 4 round trips or 8 one way trips. It's better to think about them in terms of one way trips because you want to be able to plan your interview trail back to back so that you don't have to fly back home. You can potentially go to 7 free interviews using this method!

Lastly, I really liked using southwest when interviewing last year because they are super flexible and allow you to change or cancel flights within 2 hours of your flight's departure. So as my IIs rolled in, I was able to change my flights so that I wouldn't have to fly back home, saving money and time.

I knew about this but didnt think i would get that many interviews this cycle xD

 

[Chromium Surfer]

I had money saved for college so I just used my debit card all throughout college to pay for stuff 🙁 I should have gotten a credit card and paid things off to build credit! Now that I am about to apply and essentially have no credit history are there any of these cards that I could potentially qualify for?

 

[fourandtwo]

I had money saved for college so I just used my debit card all throughout college to pay for stuff 🙁 I should have gotten a credit card and paid things off to build credit! Now that I am about to apply and essentially have no credit history are there any of these cards that I could potentially qualify for?

It doesn't hurt to try. Have you paid all your other bills (like health insurance and rent) on time? Granted, I have really good credit so I don't speak from experience, but I would assume credit cards to be lenient when approving people to use their product. After all, debt and interest are how they make money!

 

[ciestar]

I had money saved for college so I just used my debit card all throughout college to pay for stuff 🙁 I should have gotten a credit card and paid things off to build credit! Now that I am about to apply and essentially have no credit history are there any of these cards that I could potentially qualify for?

There are cards out there for people with low/no credit history. They essentially act as a debit card and you can build your credit that way. My first credit card was a card of this type. You won’t get many of the perks with these, though. It is a lot easier if you have a job.

 

[ciestar]

Chase Sapphire Reserve and AMEX Platinum are arguably the best two points cards you can get.

 

[SpoiledMilk]

I had money saved for college so I just used my debit card all throughout college to pay for stuff 🙁 I should have gotten a credit card and paid things off to build credit! Now that I am about to apply and essentially have no credit history are there any of these cards that I could potentially qualify for?

Since you've been responsible, talk with your parents and ask one of them or both to apply for these promotional cards as joint account holders.

 

[calivianya]

Chase Sapphire Reserve and AMEX Platinum are arguably the best two points cards you can get.

Oh, definitely, if the rewards you accumulate come out to be worth more than the annual fee.

Even with daily credit card spending, I feel like I tap out at about $400/year in benefits. I'd lose money with one of those two.

 

[Chromium Surfer]

It doesn't hurt to try. Have you paid all your other bills (like health insurance and rent) on time? Granted, I have really good credit so I don't speak from experience, but I would assume credit cards to be lenient when approving people to use their product. After all, debt and interest are how they make money!

I had a LOT of money saved up so I paid for things like my rent + utilities all at once for a year because I either lived on campus or paid a friends dad since they owned the condo, I am on my parents health insurance so don't have to pay for that. These last 3 years I covered all of my food and day to day living expenses by paying for things on an as needed basis.

There are cards out there for people with low/no credit history. They essentially act as a debit card and you can build your credit that way. My first credit card was a card of this type. You won’t get many of the perks with these, though. It is a lot easier if you have a job.

Yeah now that I am graduating and getting a full time gap year job either way I am going to start building credit!

Since you've been responsible, talk with your parents and ask one of them or both to apply for these promotional cards as joint account holders.

That's a good idea!! I will talk to them about it. Ironically I am more fiscally conservative than they are and they have some debt they still need to pay off but we'll see hopefully they are willing to help me out haha.

 

[ciestar]

Oh, definitely, if the rewards you accumulate come out to be worth more than the annual fee.

Even with daily credit card spending, I feel like I tap out at about $400/year in benefits. I'd lose money with one of those two.

Definitely got more than my $450 worth in rewards from the Reserve. Cancelled it anyway.

 

[fourandtwo]

Chase Sapphire Reserve and AMEX Platinum are arguably the best two points cards you can get.

I actually agree. I use my Chase Sapphire on the daily and cancelled my United mileage plus card immediately after I received my travel points. Sapphire is much more flexible.

BUT I would say I like the southwest card more than the AMEX platinum because 1) AMEX isn't supported at many places so it's harder to rack up those points, 2) southwest offers 6,000 anniversary points each year, so it basically pays for the yearly membership itself, and 3) the ability to cancel and change flights on Southwest

 

[Potentia Virtus]

Regardless of whether the student is traditional or not, good reward cards are going to required really good credit to qualify. I know the rewards may seem enticing, but I highly recommend NOT using credit cards in med school. Why would you pay interest on your everyday expenses, especially when you have no income. The credit card companies are not looking to give you free stuff because they love you, they are trying to lure you in with a few free goodies so that they can nail you with fees and interest.

 

[ciestar]

Regardless of whether the student is traditional or not, good reward cards are going to required really good credit to qualify. I know the rewards may seem enticing, but I highly recommend NOT using credit cards in med school. Why would you pay interest on your everyday expenses, especially when you have no income. The credit card companies are not looking to give you free stuff because they love you, they are trying to lure you in with a few free goodies so that they can nail you with fees and interest.

Or, do what I do and treat it as a debit card, never spending more than I have.

 

[Chromium Surfer]

Regardless of whether the student is traditional or not, good reward cards are going to required really good credit to qualify. I know the rewards may seem enticing, but I highly recommend NOT using credit cards in med school. Why would you pay interest on your everyday expenses, especially when you have no income. The credit card companies are not looking to give you free stuff because they love you, they are trying to lure you in with a few free goodies so that they can nail you with fees and interest.

So even if you pay everything off by the end of the month, do you still have to pay interest on things?

 

[calivianya]

Definitely got more than my $450 worth in rewards from the Reserve. Cancelled it anyway.

You definitely earn it up front; the first few months' spending bonus used to be worth about $600, especially if you redeemed it for travel through Chase... don't know if it is anymore; haven't paid attention. I usually try to long-term strategize with my cards because I almost never close accounts. I don't know that I'd continue to earn more than $450+ the years after the first year, which is why I never got it.

 

[calivianya]

I actually agree. I use my Chase Sapphire on the daily and cancelled my United mileage plus card immediately after I received my travel points. Sapphire is much more flexible.

BUT I would say I like the southwest card more than the AMEX platinum because 1) AMEX isn't supported at many places so it's harder to rack up those points, 2) southwest offers 6,000 anniversary points each year, so it basically pays for the yearly membership itself, and 3) the ability to cancel and change flights on Southwest

You know, I keep hearing people say this about Amex but I've never actually run into a place that wouldn't take my cards. Even the vending machines at my job take Amex.

So even if you pay everything off by the end of the month, do you still have to pay interest on things?

Nope, no interest if paid in full. That's why these cards are so nice if you're a responsible person - you literally get a ton of free stuff because other people don't pay their cards off. 🙂

 

[SpoiledMilk]

Another FYI. When you get approval for a new credit card, don't close or cancel any other cards that you have open with $0 balances. This dings your credit and lowers it. Keep the $0 balance cards open, but don't use, because your FICO score (credit worthiness) relies on this factor as well as many others...

Edit: However, make sure you keep the $0 balances card active by charging something insignificant every 1-2 months (gum/candy) and pay it off so the the credit card company does not close your card because of inactivity.

 

[fourandtwo]

So even if you pay everything off by the end of the month, do you still have to pay interest on things?

Nope that's not how it works. Do what @ciestar and many people do- don't spend more than what you have in the bank

 

[DBC03]

Even though I had six interviews, only two were far enough away that warranted a flight, and I managed to schedule them together so that I only purchased one 1-way ticket and road tripped back with a friend. So the mileage would not have helped me. However, I did get an Amex with 0% interest and a $400 back after spending some amount in the first three months (That was significantly less than what I was spending on applications). There’s no fee, so we still use the card. I have also have had the Sapphire, which gave us $400 back as well - you just need to cancel the card before the full year is up and they charge you the annual fee. They let you sign up again, with the same come-on bonus, as long as you wait a year in between.


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[SCN1a]

this is a great idea though I would have to take a year off anyways before I apply again to afford the application process and the travel I'll consider this as a good back up

 

[calivianya]

Another FYI. When you get approval for a new credit card, don't close or cancel any other cards that you have open with $0 balances. This dings your credit and lowers it. Keep the $0 balance cards open, but don't use, because your FICO score (credit worthiness) relies on this factor as well as many others...

The problem with this is some creditors will cancel your accounts if you don't use them, which will both lower your average age of credit and decrease your overall available credit, both of which are no buenos. So put a recurring subscription on it so it still gets used, but you don't do a lot of spending on it.

To keep all of my accounts open and active, I have one account that the only thing that gets charged is my Netflix subscription, another that I only pay my electricity bill with, one for my water bill, another that I only use for gas, etc. You want to use every card at least once every few months. It's best to use a financial management software like Mint (my personal favorite) to keep on top of where your balances are so you don't miss a payment when you're using multiple cards.

And, of course we can't forget the Amex that I only use at my work vending machine. I tend to rack up a grand total of about $5/month on it... but hey, it's still active.

 

[Potentia Virtus]

No, you don't pay interest if you pay the balance every month. But credit card companies know that 99.99% of people don't do this. If they did, there would be no such thing as credit card rewards. What happens when you put everything on your card and then you have an emergency that puts you over budget? Can you guarantee that your car will never break down? What about your appendix? What if your relatives get sick and you need to make an unplanned trip across the country?
Using a credit card this way when you have no income is foolish in the extreme.

 

[SpoiledMilk]

The problem with this is some creditors will cancel your accounts if you don't use them, which will both lower your average age of credit and decrease your overall available credit, both of which are no buenos. So put a recurring subscription on it so it still gets used, but you don't do a lot of spending on it.

To keep all of my accounts open and active, I have one account that the only thing that gets charged is my Netflix subscription, another that I only pay my electricity bill with, one for my water bill, another that I only use for gas, etc. You want to use every card at least once every few months. It's best to use a financial management software like Mint (my personal favorite) to keep on top of where your balances are so you don't miss a payment when you're using multiple cards.

And, of course we can't forget the Amex that I only use at my work vending machine. I tend to rack up a grand total of about $5/month on it... but hey, it's still active.

You are right! Added Edit to my post.

 

[calivianya]

No, you don't pay interest if you pay the balance every month. But credit card companies know that 99.99% of people don't do this. If they did, there would be no such thing as credit card rewards. What happens when you put everything on your card and then you have an emergency that puts you over budget? Can you guarantee that your car will never break down? What about your appendix? What if your relatives get sick and you need to make an unplanned trip across the country?
Using a credit card this way when you have no income is foolish in the extreme.

That's when you transfer things to a 0% interest balance transfer card, so you have time to recover from an emergency and can pay things off gradually without accruing interest. Most people don't do that, either... can't for the life of me figure out why when the option is available.

 

[FlavivirusProtease]

Honestly, I wish I'd done this myself.

I like Delta, so I just got the Delta Gold Amex a few weeks back. Instant zone 1 boarding on all flights and first bag checked free, plus I'm accumulating miles. Totally worth the annual fee. I plan to put every single expense I have for the next four years on this card, so once the residency interviews roll around, hopefully at least a few of my flights will be free.

I really, really, really can't overstate how much I wish I'd gotten the card before I did all the flying I've done since October. The zone 1 boarding alone would have saved a lot of anxiety... there's still space in the overhead compartments if you board zone 1, but if you board zone 3/4, odds are you're going to have to check that larger carry on bag.

Can't even tell you guys how much anxiety I had checking my bag with my interview suit in it. The thought that the airline could misplace my checked bag and I'd have to be scrambling at a mall to buy ANOTHER interview suit at the last minute... 😱

Fun Fact: If you ask the flight attendant, they'll usually hang your suit for you. There's a closet at the back of the first class section, and its empty 99% of the time. So you won't ever need to gate check it.

 

[DBC03]

I haven’t used one Amex card since 2005 and it’s still open. I don’t know how often they actually cancel cards you don’t use.


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[FlavivirusProtease]

I haven’t used one Amex card since 2005 and it’s still open. I don’t know how often they actually cancel cards you don’t use.


Sent from my iPhone using SDN mobile

I think it's like an insane amount of time for you to not use it before they cancel it. I remember that Capital One almost cancelled my card after 3 years without a single purchase, but I just called them and they reactivated the account. I made a $5 purchase, and I use it about once a year now to keep the account up.

 

[ciestar]

I haven’t used one Amex card since 2005 and it’s still open. I don’t know how often they actually cancel cards you don’t use.


Sent from my iPhone using SDN mobile

Depends on the issuer. BoA does it quickly lol

 

[ciestar]

Another FYI. When you get approval for a new credit card, don't close or cancel any other cards that you have open with $0 balances. This dings your credit and lowers it. Keep the $0 balance cards open, but don't use, because your FICO score (credit worthiness) relies on this factor as well as many others...

Edit: However, make sure you keep the $0 balances card active by charging something insignificant every 1-2 months (gum/candy) and pay it off so the the credit card company does not close your card because of inactivity.

Right. Which is why i should amend what I said earlier. Rather than pay an annual fee, I downgraded the cards to the zero fee ones to keep them open.

 

[DBC03]

Good info on closed cards. Apparently my credit companies do not like to cancel my credit cards. And I've never paid interest. Ever. so I have no idea why they don't cancel some of my cards. But it's a good reminder that maybe I should spend some money and immediate pay it off.

Also, for those who are new to using credit and building credit history, a few things to note:
- It takes a while to build good credit. Start now. A solid, long-term history is necessary for a good credit score. A good credit score is helpful for getting better credit offers or for taking out certain loans.
- Credit can be helpful, but it can also get you into trouble. Treat credit like cash - only spend what you have and never carry a balance.
- You don't need to carry a balance on a credit card to have good credit. Buy one meal out, one drink at a vending machine, or a few gallons of gas and pay that sucker off EVERY SINGLE MONTH. NEVER pay interest on a credit card. It's insanely expensive. Transfer the balance, drain your bank account, do whatever you can to avoid paying interest.
- Your credit is strongly affected by the ratio of credit you are using to total borrowing power that you have. It's also affected by the amount of credit you are using on individual accounts. So you have to consider both. I took out a new credit card this year (0% interest) to pay for applications, knowing we would have money at the end of the year to pay it off. Credit card has over $10k limit. We put over $6k on it (so 60% credit ratio), and my credit dropped from over 815 to below 770. When I paid that card down to $2k (20% credit ratio) in December my credit went back up to over 815. The best bet is to use less than 10% of your TOTAL spending power, and less than 50% on any INDIVIDUAL account.
- The better your credit gets, the better the offers that you will receive for new cards. HOWEVER, don't open too many accounts and pay attention to due dates, annual fees, benefits, etc. I have everything in my google calendar, with reminders to pay bills a few days before the due date. We have also played around with opening accounts and closing them based on benefits, but that does take a bit of a toll on our credit. If you are getting close to taking out a major loan, such as purchasing a house or a car, don't open additional credit cards for a few months.

 

[SpoiledMilk]

Another FYI to add to the great post by DBC03 above, make it an annual habit of pulling your credit report for free at Annual Credit Report.com - Home Page

There are three credit reporting companies. Every 4 months, pull one report from one company to make sure all the lines of credit you have opened are legit. AND remember that your credit report is different from your credit score.

 

[Neutropix]

I spend 15$ on food a day. Would you all consider that frivolous? This might be a good time for some sense to get talked into me. Most days I run hard all day eat in my car and then home is straight to bed. I supplement with protein shakes.

 

[Potentia Virtus]

I spend 15$ on food a day. Would you all consider that frivolous? This might be a good time for some sense to get talked into me. Most days I run hard all day eat in my car and then home is straight to bed. I supplement with protein shakes.

I would say it's probably average. But I was doing a budget for medical school according to my COA and how much I could live on with loans, my family (4) will have to eat at under $1.50/person/meal.

 

[DokterMom]

Would like to add that for traditional applicants without much of a credit history, getting approved for those promotional credit cards will be very difficult.

For those who want to start building their credit history while still a freshman, sophomore, or junior, get your parents to let you become an authorized user on their credit card account. This way, you can hitchhike on your parents' good credit while building your own history.

So when the time comes to apply for those promotional cards you will have a good credit history and your chances of approval are dramatically increased.

A very good idea.
And sorry to get political here, but yet another illustration of how affluent family-of-origin applicants are further advantaged over working-class applicants. The playing field simply isn't level...

This probably goes without saying, but it you're trying to get free airline miles, do consider which airlines will be most useful for you. Not all airlines have frequent flights into all airports and many have tough restrictions on when you can and cannot use points. Southwest is great and very points-friendly if their route schedule meets your needs.

 

[Neutropix]

This was an extremely helpful thread for me, everyone. Thanks.

 

[FlavivirusProtease]

I spend 15$ on food a day. Would you all consider that frivolous? This might be a good time for some sense to get talked into me. Most days I run hard all day eat in my car and then home is straight to bed. I supplement with protein shakes.

I spend $15 on food per day right now as well, I'd say its about average or just over average.

I figure that we'll both probably need to bring our costs down when we're in medical school to make ends meet. ($15 per day = $5500 per year, which feels like a lot). Thankfully, the school I'm going to is in the middle of nowhere and has a cafeteria that closes at 2PM. I guess that means I'll have to take up cooking, but I might save some money.

 

[Neutropix]

I spend $15 on food per day right now as well, I'd say its about average or just over average.

I figure that we'll both probably need to bring our costs down when we're in medical school to make ends meet. ($15 per day = $5500 per year, which feels like a lot). Thankfully, the school I'm going to is in the middle of nowhere and has a cafeteria that closes at 2PM. I guess that means I'll have to take up cooking, but I might save some money.

I can cook, but it just feels so damn time consuming. Usually for dinner I call ahead to Teriyaki Madness and then pick it up immediately to eat in my car. I guess things would change if I had to cook.

 

[fourandtwo]

Thank you everyone else who chimed in on this thread, making it more useful for traditional students!

 

[FlavivirusProtease]

I can cook, but it just feels so damn time consuming. Usually for dinner I call ahead to Teriyaki Madness and then pick it up immediately to eat in my car. I guess things would change if I had to cook.

I think there's a meal prep guide on SDN somewhere (Might be under the essentials megathread). If you don't mind eating the same thing for a bunch of days in a row, that could really work out for you.

 

[DBC03]

I think there's a meal prep guide on SDN somewhere (Might be under the essentials megathread). If you don't mind eating the same thing for a bunch of days in a row, that could really work out for you.

When we're on the ball (not often) (maybe I shouldn't admit that), we'll make one nice meal in the beginning of the weak, then eat it all week. There are some really easy meals and if you make enough it lasts all week.

One thing that I do that saves a little money is purchasing a Subway salad with double meat, then adding my own bag of lettuce to spread it out for lunch and dinner. I think that costs around $10 for everything and it's passable as a meal (with a few other additions). But I still need breakfast. Breakfast is usually leftovers. I also have a fairly strong preference for carbonated water or soda.

 

[predentperson]

Now the question is, once you are actually in dental (or medical, or whatever) school, how do you deal with the annual fees? You're not going to have time to work, or money to travel, right?

 

[ciestar]

Now the question is, once you are actually in dental (or medical, or whatever) school, how do you deal with the annual fees? You're not going to have time to work, or money to travel, right?

Closed the card or downgraded to the no annual fee card.

And after first year, i took a vacation completely funded by rewards