Reply
Valued Member
keninmiami
Posts: 47
Registered: ‎05-29-2009
0

Re: Timing your apps

 

 

    Hauling, I never looked at it that way! If that scenario is correct I will be in trouble to! I was going to use any new card I got right away and moth ball others and cycle them every 3 months or so. Will that work? Besides adding new cards to add my kids as AU's on to help establish a credit file for them, I was trying to diversify in case any larger banks become  troubled in the future.

   I think form a business stand point financial institutions would have a carrying cost on accounts used or not. This would impact the bottom line so unused accounts would cost them money. The business I am in (distressed properties) is in a mess because a person could use a stated income and they never checked identity at all. I have dealt with individuals that actually got a property loan here while they phoned from another country and were never a citizen!

   Finally you have to prove you are who you say you are and things are starting to come back to a center point to stabilize.

I read the fine print on some cards I was thinking of applying for and found a thing called "default rate" Wow, if you are ever 90 days late I do not see anyone getting caught up in the finances if they owe a lot on the card!

I am not going to poke the credit dog anymore until I know I can get the 2 cards I want, well I hope I can wait.

If I could just stop reading the forums I would not feel compelled to apply!

   I am lucky because I am cheap and hate owing anyone money so I pif unless I would get some kind of crazy toaster reward!

How long do new accounts (multi) infringe on an upward score? Is it 90 day intervals or 6 months? Noooo don't tell me a year!

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Timing your apps


keninmiami wrote:

I read the fine print on some cards I was thinking of applying for and found a thing called "default rate" Wow, if you are ever 90 days late I do not see anyone getting caught up in the finances if they owe a lot on the card!


Many issuers currently impose the default rate after one 30-day late! One provision of the Credit CARD Act of 2009 prevents rate changes until you have had one 60-day late. The Act also requires that your original rate be restored after six months of consecutive on-time payments.

 

It is possible to get back on top of a 90-day late account. Many on this board have done so. I have an account that was 120-days late in JAN05 and has been paid as agreed ever since. Eventually that account will report as a positive TL. I am lucky it wasn't charged off!

Moderator
MarineVietVet
Posts: 14,897
Registered: ‎07-14-2009
0

Re: Timing your apps

I was going to use any new card I got right away and moth ball others and cycle them every 3 months or so. Will that work?

 

Yes that will work but all I do is have each of my cards pay a different monthly recurring bill with automatic billpay. I pay the bill in full before the statement posts to avoid any interest charges. That way I don't have to keep up with which card needs to be used this month, quarter, etc. It works very well for me but I don't have all that many accounts to track.

 

 

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Timing your apps


keninmiami wrote:

How long do new accounts (multi) infringe on an upward score? Is it 90 day intervals or 6 months? Noooo don't tell me a year!

 



Sorry for the delay in answering --we lost Comcast for about 18 hours yesterday and last night, and I was reduced to cell phone and radio. Quite a shock! Finally gave up and went to bed.

Anyway, there are different ways in which a new account hurts, or potentially hurts.
  • First, the inq, which counts for a year. It then displays for a second year on your full reports and falls off.
  • Second, the presence of a new account. The new account ding lasts for somewhere between 6 months and a year for most of us.
  • Third, the lowering of your AAoA (average age of accounts.) There seem to be certain age "thresholds", and if you drop below them, you lose points, probably from going into a younger age score bucket. That's our best guess, anyway. So if a new account drops your AAoA from say 4y 11m to 4y 6m, no real biggie --it will still display as 4 years, but you'll have to wait that much longer to hit 5 years. But if your AAoA was 5y 1m, and the new account drops it to 4y 8m (same amount), your score will probably drop, because now your displayed age is 4 years instead of 5.

Some people don't get hurt at all --typically, they have no cards, or only one or two. It seems like the FICO scoring formula "wants" you to have three open cards, and while you're getting to that point, there's little score damage, and often score improvement. After that, though, you can expect to see some losses. The amount varies. I lost 75 points on FICO EX back in the day (yes, 75) after a major app spree that obliterated my AAoA. In one year, most of the points were back. I'm now better than I was on the other two. Who knows about EX, of course. (Those turkeys!)
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Frequent Contributor
TangMeister
Posts: 456
Registered: ‎07-09-2008
0

Re: Timing your apps

[ Edited ]

OP, my strategy would be to PIF every card but one before the statments cut, so you only have one card reporting a balance on your credit reports...actually Experian.  Then I'd app for Amex and one Citi card...in that order and that's it.  Save the second Citi card for another time.  :smileyhappy:

 

I went on an app spree in Feb, 7 cards approved and nary a hint of AA anywhere since.  Obviously, your mileage may vary, but I don't mind being a bit more fearless than most.  My credit reports are clean, I don't revolve balances, and I'm just a rewards junkie, so seems to work for me.  Good luck!

 

 

Message Edited by TangMeister on 09-27-2009 05:13 PM
New Member
moneypenny
Posts: 5
Registered: ‎09-25-2009
0

Re: Timing your apps


TangMeister wrote:

OP, my strategy would be to PIF every card but one before the statments cut, so you only have one card reporting a balance on your credit reports...actually Experian.  Then I'd app for Amex and one Citi card...in that order and that's it.  Save the second Citi card for another time.  :smileyhappy:

 

I went on an app spree in Feb, 7 cards approved and nary a hint of AA anywhere since.  Obviously, your mileage may vary, but I don't mind being a bit more fearless than most.  My credit reports are clean, I don't revolve balances, and I'm just a rewards junkie, so seems to work for me.  Good luck!


Thanks TangMeister. Sounds like sound advice. (You mind telling us how many cards you applied for during that last app spree?)

One more question: is there any difference in applying for the Hilton Surpass AMEX compared to the no-fee Hilton AMEX, credit-qualifying speaking? In other words, if I could get the no-fee Hilton does that mean I could just as easily get the Surpass version instead?

I'll probably just go for the no-fee version anyway since I don't think the extra 20,000 point bonus is really worth the $75 fee, especially since I don't plan on actually paying for a Hilton Room very often. And if there is a slightly tougher qualification applied for getting the Surpass card then that would really clinch it for me. Definitely not worth the added risk in my case.

Frequent Contributor
TangMeister
Posts: 456
Registered: ‎07-09-2008
0

Re: Timing your apps


moneypenny wrote:

TangMeister wrote:

OP, my strategy would be to PIF every card but one before the statments cut, so you only have one card reporting a balance on your credit reports...actually Experian.  Then I'd app for Amex and one Citi card...in that order and that's it.  Save the second Citi card for another time.  :smileyhappy:

 

I went on an app spree in Feb, 7 cards approved and nary a hint of AA anywhere since.  Obviously, your mileage may vary, but I don't mind being a bit more fearless than most.  My credit reports are clean, I don't revolve balances, and I'm just a rewards junkie, so seems to work for me.  Good luck!


Thanks TangMeister. Sounds like sound advice. (You mind telling us how many cards you applied for during that last app spree?)

One more question: is there any difference in applying for the Hilton Surpass AMEX compared to the no-fee Hilton AMEX, credit-qualifying speaking? In other words, if I could get the no-fee Hilton does that mean I could just as easily get the Surpass version instead?

I'll probably just go for the no-fee version anyway since I don't think the extra 20,000 point bonus is really worth the $75 fee, especially since I don't plan on actually paying for a Hilton Room very often. And if there is a slightly tougher qualification applied for getting the Surpass card then that would really clinch it for me. Definitely not worth the added risk in my case.


I went 7 for 7 on apps/approvals, and I am done for awhile (until I see something I really want, anyway).  :smileyhappy:  Sorry, no idea about the difference in credit-qualifying for those two particular Amex offerings.  I wouldn't expect *too* much difference, such as what exists between approval for a green/gold charge card (easier) vs. one of their credit card offerings (sometimes much more difficult).  Keep us posted!

New Member
moneypenny
Posts: 5
Registered: ‎09-25-2009
0

Re: Timing your apps

TangMeister wrote:

OP, my strategy would be to PIF every card but one before the statments cut, so you only have one card reporting a balance on your credit reports...actually Experian.  Then I'd app for Amex and one Citi card...in that order and that's it.  Save the second Citi card for another time.  :smileyhappy:

______________________________________________________

 

Went ahead and followed your advice and applied for the no-fee Hilton AMEX and just one of the Citi AA cards...approved for both. 12 for 12. My streak remains

intact. It's so easy I'm always tempted to go ahead and just go for another one or two more but I have to show a little discipline here. I'm in no hurry. But I heard the

30,000 mile AA card offer will end December 31 so I wanted to get at least one now and have enough down time before getting a couple more right at the deadline. 

I'm hoping after those two cards at the end of the year I will try and give it a rest, get off the grid for a year or so and let everything settle down and lose a few of these inq.

Not sure I can though as I think I'm a full-fledged miles junky. Thus far a pretty fun, and rewarding, addiction though!

I already have plenty of FF miles in both United and Continental but when I discovered you can transfer AA miles into the Hilton program at a rate of 1:2 I just had to 

start collecting American.

Good luck to you and keep up the good work!


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}