Timing your apps

[Anonymous]

Thought I'd take advantage of the obvious expertise on credit around here (flattery gets you places sometimes). I am considering getting 3 different credit cards (Hilton Surpass AMEX and a couple of the Citi AA cards) and was wondering what the prevailing thought would be on the best way to go about it. Considering a FICO score of mid-700's with a true and pure and decently long credit history with immediate approvals of 7 or 8 quality cards (o,k., fine, 10 to be exact) in the past 18 months, do you think it would it be safer to spread these new card apps out over the next few months or just push my thus-far excellent luck and go for them all in one sitting like yanking a tooth and getting it overwith. I've heard the advantage of doing them all one on top of the other at the same time is that each of the pulls wouldn't see the other two since they wouldn't have had time to show up on my report. Sounds plausible to me.

But what do you think?

I just don't want to break my 10-for-10 streak and am getting a little more careful about these cards in the present economic climate.

Thanks for any advice.

[Uborrow-Upay]

Welcome to the forum, moneypenney!  (How's 007 doin', by the way?) lol

I think the "all at the same time, so no one sees the others' pulls"  theory has been debunked.  But even if it wasn't, do you have a need for the new credit?

If you don't need it, stop app'ing. 

You don't say what your existing cards have for limits, but it sounds as if you're a prime customer, with quality cards carrying decent CLs.  Don't risk adverse action from existing creditors by appearing to be in need of new credit.  Just doesn't look good, especially now.

Great streak, though...very impressive!  

[Anonymous]

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@Uborrow-Upay wrote:

Welcome to the forum, moneypenney!  (How's 007 doin', by the way?) lol

I think the "all at the same time, so no one sees the others' pulls"  theory has been debunked.  But even if it wasn't, do you have a need for the new credit?

If you don't need it, stop app'ing. 

You don't say what your existing cards have for limits, but it sounds as if you're a prime customer, with quality cards carrying decent CLs.  Don't risk adverse action from existing creditors by appearing to be in need of new credit.  Just doesn't look good, especially now.

Great streak, though...very impressive!  

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+1

CITI and AMEX are especially sensitive to recent inquiries and "escalating debt".

[Anonymous]

No, I don't "need" these cards, but would like them. I don't get them for the credit as I never carry a balance longer than it takes for a charge to show up

online and pay for it. I get them for the bonuses, usually frequent flyer miles. But now that I've got more miles than

I'll ever be able to use for the next few years I figured I need a place to stay on these vacations so I'd better start in on a hotel program. Hence, the Hilton AMEX.

I notice a lot of warning on these boards about too many cards yet I know of many people who consistently apply for and receive a steady stream of cards with

very little effect to their credit score. Actually, I've personally experienced that myself: after 10 cards in 18 months my score is essentially unchanged from the 

time of my first app.

Lots of cards can easily raise your credit score over time assuming they are all kept in excellent condition with low, or preferably, no balance. Much better util ratio number there.

I'm just not sure why, if I already have a lot of cards with a large combined credit limit and have been using essentially none of it, why would creditors suddenly be worried about

seeing my application for a couple of more?

You are probably aware of the Citi AA cards some people are churning for bonuses at the rate of a couple every 2 months (per citi's own rules!) and seem to be doing fine, not to mention

doing a lot of free flying! I personally wouldn't get that carried away with cards but I can see why someone would. If it aint' broke, don't fix it.

I guess my main question would be, which scenario trumps the other and at what point: Many cards withexcellent history and no balance or recent inquiries and new accounts.

[smallfry]

Moneypenny it works until it doesn't. Stay this corse and watch the AA.

[Jazzzy]

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@Anonymous wrote:

No, I don't "need" these cards, but would like them. I don't get them for the credit as I never carry a balance longer than it takes for a charge to show up

online and pay for it. I get them for the bonuses, usually frequent flyer miles. But now that I've got more miles than

I'll ever be able to use for the next few years I figured I need a place to stay on these vacations so I'd better start in on a hotel program. Hence, the Hilton AMEX.

I notice a lot of warning on these boards about too many cards yet I know of many people who consistently apply for and receive a steady stream of cards with

very little effect to their credit score. Actually, I've personally experienced that myself: after 10 cards in 18 months my score is essentially unchanged from the 

time of my first app.

Lots of cards can easily raise your credit score over time assuming they are all kept in excellent condition with low, or preferably, no balance. Much better util ratio number there.

I'm just not sure why, if I already have a lot of cards with a large combined credit limit and have been using essentially none of it, why would creditors suddenly be worried about

seeing my application for a couple of more?

You are probably aware of the Citi AA cards some people are churning for bonuses at the rate of a couple every 2 months (per citi's own rules!) and seem to be doing fine, not to mention

doing a lot of free flying! I personally wouldn't get that carried away with cards but I can see why someone would. If it aint' broke, don't fix it.

I guess my main question would be, which scenario trumps the other and at what point: Many cards withexcellent history and no balance or recent inquiries and new accounts.

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I know how you feel, in that I love my rewards cards, too. They can be mined for a lot of benefit. I recently applied for a PenFed card for the rewards...but that only put me to a total of 6 cards.

I'd say to just be careful. Realize when you app for new cards that your old ones may eventually reduce your credit limit or close if they are not being used. Many credit card companies today are withdrawing credit to their customers who don't utilize it. Some of them are looking to carry only their profitable cardholders...those who charge a lot or who carry revolving balances. If I have the opportunity in the future, however, I will go for another good rewards card, even if it means giving up one of mine that doesn't have rewards...but I've got a fairly old credit file, so I have room to lose a few. I see no benefit to using a card that doesn't offer rewards.

Can I ask which airline cards you have liked and why? Presently I only have a DeltaSkyMiles AmEx, and I've wondered if there is something more useful out there.

[Anonymous]

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@Anonymous wrote:

 yet I know of many people who consistently apply for and receive a steady stream of cards with

very little effect to their credit score.

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What people tell yo uand what is really happening is frequently two different things. Especially when it comes to credit score, credit lines and income.

[haulingthescoreup]

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usmc58555 wrote:

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@Anonymous wrote:

 yet I know of many people who consistently apply for and receive a steady stream of cards with

very little effect to their credit score.

---

What people tell yo uand what is really happening is frequently two different things. Especially when it comes to credit score, credit lines and income.

---

Very true.

Welcome to the forums, moneypenny!

As others have said, the danger these days with having lots of cards is that even with perfect credit history and usage on your part, some of your creditors might start cutting your CL's if they think that you aren't going to use them any more. Banks are scrambling to free up unused credit for new customers, and they are doing so by taking it away from existing customers.

I currently have 7 CC's + another 3 store-only cards. It's really a PITA to keep all these accounts open and used enough to maintain current CL's. That's why I have a couple of cards on the chopping block, especially if they don't start showing some signs of life in the good service department.

It's sort of like the difference between having 2 puppies and having 12. Keeping two puppies fed and watered and exercised provides some nice activity in your day. Doing the same with 12 puppies, ouch.

[Anonymous]

Hi Lynette, yeah, I've got the miles bug. I think it's generally accepted that the best card for long-term miles earning is the AMEX SPG card. Points on that can be transferred into

some 30 different airlines with a 25% bonus when you transfer a 20,000 point chunk. Or you can use the points for some pretty good hotel deals too. A very

versatile program. I'd definitely check it out if you haven't yet. Get both the biz and personal version for their bonuses and then just cancel one of them when

the annual fee comes due if you want. 

As for trusting people telling me about their success with credit card churning and credit scores, I trust my sources.   

As for the pros and cons of actually using your credit as opposed to keeping balances at 0, that brings up another apparent conflict in credit score theory.

Which is it? On one hand I'm hearing I should keep my balances as low as possible for a good score but now I'm hearing my creditors don't like me keeping

my balances low and I need to start using or losing. If creditors like a balance then they'd love it if I maxed them out wouldn't they? But I thought that was bad?

So let me see if I've got this right: Your credit score will suffer if you are continually carrying balances and using a high ratio of your credit line. On the other hand,

creditors don't like giving credit to those who aren't using enough of the credit line they already have, but they do like high credit scores. Hmmmm. Sounds like 

a danged-if-you-do, danged-if-you-don't situation here.

Any ideas?

[haulingthescoreup]

You can wear the numbers off of a card with lots of usage, but if you pay most or all of the balance displaying online before your statement drops, you will have low to 0% util reported.

Low util = good for scores
High usage = makes lenders happy

If you have the income to keep on top of them all, timing your payments is the tactic to use.