App Spree, why not?

[Anonymous]

There appears to be some great divide over adding multiple cards in a short period of time. I realize a thick file can take a bit more w/o a huge negative impact and a thin file will feel the new cards a bit more. How long? 1 year, 2?

Downside is AAoA, right? What else?

If you add decent SLs, it is easier to keep util lower. Cards aging is a very good thing and once they are open you have at least 10 years of history.

The end game is to always use credit responsibly. Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?

My personal situation. I have a few old closed accounts that will fall off. I built my scores, got all the cards I wanted and now plan to let them grow. I did not see a huge impact. If I had waited and only brought in 1 new account every 6 months or a year - my AAoA would have taken a huge hit. Now I have some built in security to absorb the lose of closed accounts. I understand my profile is different from others.

If you dont plan on a mortgage, heloc or car purchase in a year or two - why wait?

[Anonymous]

I think you answered your own question with this line thus, "Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?"

No one is against doing an app spree when done in a sensible and strategic manner.  But most people are easily influenced and they go crazy applying for cards they don't need nor would ever use. That is why people are often discouraged from undertaking such endeavours.

[Callandra]

It depends on the person. I liked adding one card at a time every six months or so but I'm conservative like that. Others may also spread apps out (vs. going on a spree) for other reasons: it looks less aggressive/desperate, able to meet bonus spend (and not having to miss a bonus or overspend to get them), etc.

[Anonymous]

^ truth. good points entirely.

but to be honest i am not sure i understand the reason for the post. is this a justification post? because i haven't seen much evidence of people talking down on sprees

[myjourney]

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@Anonymous wrote:

There appears to be some great divide over adding multiple cards in a short period of time. I realize a thick file can take a bit more w/o a huge negative impact and a thin file will feel the new cards a bit more. How long? 1 year, 2?

Downside is AAoA, right? What else?

If you add decent SLs, it is easier to keep util lower. Cards aging is a very good thing and once they are open you have at least 10 years of history.

The end game is to always use credit responsibly. Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?

My personal situation. I have a few old closed accounts that will fall off. I built my scores, got all the cards I wanted and now plan to let them grow. I did not see a huge impact. If I had waited and only brought in 1 new account every 6 months or a year - my AAoA would have taken a huge hit.

Not really....An AAoA hit would be less from say someone who apps every 6 month vs someone who apps every year because in reality you grow 6 months of AAoA and then loose 6 months of AAoA vs a year which would definitely be a larger drain on AAoA 

Now I have some built in security to absorb the lose of closed accounts. I understand my profile is different from others.

If you dont plan on a mortgage, heloc or car purchase in a year or two - why wait?

I have to agree that a spree has different effects based on different profiles but I also disagree that the general consences is that we think it's not good but more it's not for every profile is what we try and convey.

However if you stay around here long enough what you'll see as mentioned by the 3 post under OP

1) cards apped for not within reach but because its the quote on quote hot card with high limit giveaway

2) no plan on what was needed by that persons spending habits ...I want it...it looks cool or the best one I see...its metal (whoop de dooo)

3) I need a balance transfer because debt has ballooned ....but what wasn't mention is that 2 months ago you were ok but you went into debt bonus chasing due to 5 apps with 9k spending in 90 days and that's 6 months of your yearly salary...OMG 

4) can't meet the spend for the card bonus but you can pay an high AF 

[MyLoFICO]

I just did this. Got 8 HP in 2 hours. Got all 8 cards. (Store cards) Got them for stores I visit but they were not needed. I only had 2 cards that were more than a year old. One was almost 6 years old and one was almost 3. Thankfully I have alot of old auto loans that have been paid off and a mortgage that is almost 12 years old. My score is taking a magic carpet ride but my HP's are high (my sig) and my AAoA has dropped to right at 3.5yrs. My Util went from 58% to 18% and my paid off cards havent even hit. Once they do it should drop to about 1%. Yes, I am glad I got the cards even though I will likely not use them alot since all my purchases will be made with my cash back cards. I couldn't get approved for the major cards because I have 1 bad debt that is due to fall off in a year. So, I figured I had a year, why not grow something. 

Oh, I got a Discover IT Secured too. To grow it and get my foot in the door. 

[Anonymous]

Most (not all) cards worth getting (in my opinion) come with a great signup bonus.

Most (not all) great signup bonuses require minimum spend of $1k-$5k.

So unless someone buys a lot of gift cards or ventures into MS, at any given income/spending level there is a limit to the number of good cards a person can reasonably add at one time.

[Kevin86475391]

Definitely I think it depends on the person, their preferences, and their long-term, and short-term goals.

Personally I tend to take a very slow, conservative approach to adding new lines of credit. I only average about 1 application every 1-2 years. Currently my last application was the Citi DC about 13 or 14 months ago, and while it's possible I may add another card in the next 6 months or so...I may not. The only one that looks appealing to me right now is the Amex BCE, but I'll need to see a very lucrative sign up bonus to pull the trigger.

Anyway, my reasons for not doing app sprees are:

1) Even though I do PIF, one of my favorite things about having a new card is having a 0% intro APR and the security of being able to pay slowly without depleting liquid cash if I choose to. I would never want to 'double up' on having two or more 0% intro APR cards at the same time. That would just seem like a terrible waste to me.

2) I do prefer to concentrate spending on the new card since, more likely than not it has a signup spend bonus. I don't want to overspend and I like to wait for higher bonuses - that typically require higher spend levels - so again, I wouldn't want to handle more than 1 at a time.

3) Having a new card is fun and exciting. I want to thoroughly enjoy it and gradually work it into my lifestyle and spending habits. Psychologically I'm pretty sure it's more enjoyable to me to have a single new card.

[red259]

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@Anonymous wrote:

There appears to be some great divide over adding multiple cards in a short period of time. I realize a thick file can take a bit more w/o a huge negative impact and a thin file will feel the new cards a bit more. How long? 1 year, 2?

Downside is AAoA, right? What else?

If you add decent SLs, it is easier to keep util lower. Cards aging is a very good thing and once they are open you have at least 10 years of history.

The end game is to always use credit responsibly. Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?

My personal situation. I have a few old closed accounts that will fall off. I built my scores, got all the cards I wanted and now plan to let them grow. I did not see a huge impact. If I had waited and only brought in 1 new account every 6 months or a year - my AAoA would have taken a huge hit. Now I have some built in security to absorb the lose of closed accounts. I understand my profile is different from others.

If you dont plan on a mortgage, heloc or car purchase in a year or two - why wait?

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Depends on what you consider an app spree. I will apply for four cards at most in one spree and then wait six months. Lately I have slowed down because I have many of the cards I want and now I am just moving on cards when they have a special bonus. I like to spree so inqs age together. In terms of downsides if you have a thin file you could risk AA by your current lenders, although this isn't super likely unless you don't have your credit report in shape when you pull the trigger in which case you could really shoot yourself in the foot. Also, someone with a thin file by doing a spree may end up getting toy limits on some of their later apps, which can be a real waste. For the harder core people they will try to spread their apps out based on which lenders are pulling which credit reports, so that all the inqs don't hit the same report. The other downside can be if you are going for signup bonuses and the initial spend requirements make it tough. I think one cycle I needed to come up with like 14k spend in three months which was really pushing it. Not something I would do again. 

[noobody]

I think every one new to credit should do a app spree at 6 month mark, ie: get 5 more accounts, because your AAoA is next to zero to begin with, and will not take much loss after spree.

now 12 month later you if add one more account, it will only take 2 month hit

You build a bullet proof AAoA this way