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Frequent Contributor
aamex
Posts: 285
Registered: ‎04-28-2011
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"App Spree" Logic..help me understand this.

What's the reasoning behind applying for multiple cards at 1 time? How does this benefit your credit profile/score? How does putting your profile on alert with all of your lenders help you establish a good relationship? Also, how does having several 500$ - 1000$ limit cards help your purchasing power? Wouldn't your creditors be less like to extend you more credit if you have many "toy limit" cards.  Doesn't this go against the old mantra "apply for credit as you need it"? 

 

These are all somewhat rhetorical, but I really don't understand the thought process behind it. There are several people on the credit board that go on these sprees only to end up "laying" these very low limit cards to pasture, out growing the lender or CL, etc.

 

I'm fairly new to the credit game..as many of you probably have history longer than i've been alive...so, there maybe something I'm missing...help me understand?

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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: "App Spree" Logic..help me understand this.


aamex wrote:

What's the reasoning behind applying for multiple cards at 1 time? How does this benefit your credit profile/score? How does putting your profile on alert with all of your lenders help you establish a good relationship? Also, how does having several 500$ - 1000$ limit cards help your purchasing power? Wouldn't your creditors be less like to extend you more credit if you have many "toy limit" cards.  Doesn't this go against the old mantra "apply for credit as you need it"? 

 

These are all somewhat rhetorical, but I really don't understand the thought process behind it. There are several people on the credit board that go on these sprees only to end up "laying" these very low limit cards to pasture, out growing the lender or CL, etc.

 

I'm fairly new to the credit game..as many of you probably have history longer than i've been alive...so, there maybe something I'm missing...help me understand?


I wish I made better decisions on apps early in my rebuilding journey, I would have apped for better cards 1 at a time every 6 months.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Senior Contributor
drkaje
Posts: 3,491
Registered: ‎07-25-2008
0

Re: "App Spree" Logic..help me understand this.

They should really call it an "App binge". :smileyhappy:

 

Generally, when people can't resist the urge anymore they app for multiple cards because all the HPs will fall off at the same time. Once the dust clears they'll look for a company that doesn't pull whatever bureau has the lowest number of pulls or lock their other reports.

 

Some keep apping until getting a yes or spend all their time between apps obsessing over the next one. :smileyhappy:

 

Getting approved for a bunch of low limit cards and then fighting for CLIs is another way people do it.

 

I'm still pretty much convinced slow and steady wins the race but have probably suffered at times for being too conservative.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


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Established Contributor
Koop10010
Posts: 731
Registered: ‎02-15-2012
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Re: "App Spree" Logic..help me understand this.

There's the idea that you will take a big hit right away from the inquiries and drop to AAoA, but you will recover more quickly than if you spread the apps out over time.  There is some truth to that, that if you apply for all the cards you want at one time, in 2 years they will all be 2 years old, whereas if you spread them out many will be younger.  So if you spree, you take a bigger hit right now, but can recover better over time.  However, a lot of the time it seems more like an excuse to justify the "app itch" that many feel.  Thinking, "I need to go ahead and app for all these cards I want right now so I'm in better shape later" when really you don't need them or it would be smarter to wait.  Then people don't get the limits they wanted and in a few months they want to close some of their cards and go on another spree....

FICOs (2/24/12): EX 752, EQ 740
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Regular Contributor
InvincibleSummer2
Posts: 171
Registered: ‎06-15-2012
0

Re: "App Spree" Logic..help me understand this.


aamex wrote:

What's the reasoning behind applying for multiple cards at 1 time? How does this benefit your credit profile/score? How does putting your profile on alert with all of your lenders help you establish a good relationship? Also, how does having several 500$ - 1000$ limit cards help your purchasing power? Wouldn't your creditors be less like to extend you more credit if you have many "toy limit" cards.  Doesn't this go against the old mantra "apply for credit as you need it"? 

 

 


The It's possible my perspective's a bit different, as a rebuilder, than someone who's starting out fresh. I've also never actually gone on an app spree, FWIW.
But for me? I could care less about "purchasing power". Credit isn't money. True financial stability has very little to do with how much you've been invited to charge up, really. I just want some positive tradelines reporting. So a few cards with smaller limits would be fine for me. And honestly, I think the "apply for credit as you need it" has gone the way of the dodo bird. It's easier to get credit when you don't need it. Just ask anyone who's gone through any major life changes that left them short.
That said, I really don't understand folks who look to get as much credit as possible without being thoughtful about it. I can understand apping within a certain time frame so that in inquiries fall off at the same time, but if it's moved into the "binge" territory as drkaje mentioned? That's a little beyond the beyonds. But I can understand it. If you've gotten to a place, emotionally, where a getting credit card has become a status thing, rather than a plain & simple tool, then no wonder. These very boards have stories about people who app 20x at a stretch, or want a certain card just because. There was someone who wanted an Amex Platinum, just because...and he didn't care about the $450 AF, even though he had a fairly low income and couldn't use much of the rewards. Just wanted it.
 


Established Contributor
emptypockets
Posts: 999
Registered: ‎02-03-2009
0

Re: "App Spree" Logic..help me understand this.

[ Edited ]

aamex wrote:

What's the reasoning behind applying for multiple cards at 1 time? How does this benefit your credit profile/score? How does putting your profile on alert with all of your lenders help you establish a good relationship? Also, how does having several 500$ - 1000$ limit cards help your purchasing power? Wouldn't your creditors be less like to extend you more credit if you have many "toy limit" cards.  Doesn't this go against the old mantra "apply for credit as you need it"? 

 

These are all somewhat rhetorical, but I really don't understand the thought process behind it. There are several people on the credit board that go on these sprees only to end up "laying" these very low limit cards to pasture, out growing the lender or CL, etc.

 

I'm fairly new to the credit game..as many of you probably have history longer than i've been alive...so, there maybe something I'm missing...help me understand?


I have done a 'app spree,' and to be honest some of it is just because Ialways wanted certain cards. But also, there were cards that were newly available (US Bank Cash +, for example), that I felt I would be able to get at the time I was ready to app. There is some logic to doing apps at the same time so they age off together. Especially if you are closing some cards after you are appoved for the new ones.

 

People have different reasons for their app sprees. Some people app spree because they get cards for rewards, then cycle (churn) them, every so often to keep getting large sign up bonuses. Some people just are seeking more credit t help with utilization, some are adding cards they could't get when they had a baddie (BK, CO, etc) on their report, and now it is no longer reporting.

 

I think that app sprees should only be done when you know why you are doing it ( what benefit it is to YOU) , have the credit score/reports/credit history to support the cards you app for, and are knowledgeable/realistic about what you can get or are most likely to be approved for. If you research before you apply, you can eliminate alot of wasted apps. Too many people have 600 scores with numerous baddies, or BK's and CO's and apply without researching whether a creditor is BK/CO friendly, and get upset that they were denied.

 

Most everyone on this forum are sort of "credit geeks" and likely do lots of things in regards to credit that the general public would not do. I can only speak for myself, because I have been down the bad credit road, and rebuilt my credit using information I have learned here.

 

This game we are playing is chess, not checkers and you need to have a strategy to play effectively. 


CC's: AMEX (4), Alliant Visa, PenFed AMEX, Pen Fed Promise, Citi (4), Chase (5), Nordstrom Visa,US Bank Cash+, Huntington Voice, UMB Visa, Nasa FCU Plat Cash Visa, Barclay's Visa, Citi (4), Discover IT, Walmart Discover, Sam's MC, Cabela's Visa, Cap One QS, BOA (2), BMW Visa, Comenity Visa/MC (3), Ebates Visa Siggy, 5/3 RLR MC, DC Premier MC, Macy's AMEX; Several store cards.

Current Scores: EQ (6/14): 800; TU MyFico (6/14): 814; Walmart TU Fico 08 (10/2014): 813; EX (6/14): 775
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: "App Spree" Logic..help me understand this.

Don't forget sign up bonuses.  When a card is going to give you $500+ just for applying (and sometimes hitting a minimum spend) the inquiry(ies) can be well worth it.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
0

Re: "App Spree" Logic..help me understand this.

I went on an app spree in Feb so that I could pick up some cards that better fit my needs. Not every app spree results in toy limits.

I applied for: QT gas card - declined
Amex zync - approved npsl
Amazon chase - declined then approved on recon
amazon store card
Discover open roads - declined

I picked up 2 reallly nice cards in that spree; both of which I use now several times per week.
At the time of the spree my only card was discover... now it holds a hallowed place in my sock drawer and I pull it out when I want to book travel on expedia. Shop discover gives 5% cash back on expedia :smileyhappy:

In march I refinanced my truck and was pre approved for the visa. I got it with a 22k limit.

My available credit went from around 5k to over 35k

Keep in mind that not every app spree results in toy limits or are the result of uncontrollable urges. I had been in underwriting for a mortgage for 4 months. After the mortgage process and a lot of removal of innacurate info via rapid rescore; I felt like I was finally in a position to get cards to better fit my needs. Ive been known to send over 5k in spending through amex. I wouldn't have been able to do that before my spree.

Also take a look at tinuviels latest spree. I don't see any toy limits there.

As of march 2013 I will have only one HP on each report. That is the beauty of apping in sprees. The 1 Hp is coming from a mortgage refi that will literally save me over 10k in interest.

Its all part of one big strategy that I have which is to save money and live better :smileyhappy:

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
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Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
0

Re: "App Spree" Logic..help me understand this.

Also; I dont think my app spree really harmed my relationship with discover. They've been with me since 1999. I really don't think they are going to dump me anytime soon. They've been with me through a divorce ; judgment; birth of a kid. Major things... they aren't going anywhere.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
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Moderator Emeritus
tinuviel
Posts: 4,875
Registered: ‎11-02-2010
0

Re: "App Spree" Logic..help me understand this.


InvincibleSummer2 wrote:

aamex wrote:

What's the reasoning behind applying for multiple cards at 1 time? How does this benefit your credit profile/score? How does putting your profile on alert with all of your lenders help you establish a good relationship? Also, how does having several 500$ - 1000$ limit cards help your purchasing power? Wouldn't your creditors be less like to extend you more credit if you have many "toy limit" cards.  Doesn't this go against the old mantra "apply for credit as you need it"? 

 

 


The It's possible my perspective's a bit different, as a rebuilder, than someone who's starting out fresh. I've also never actually gone on an app spree, FWIW.
But for me? I could care less about "purchasing power". Credit isn't money. True financial stability has very little to do with how much you've been invited to charge up, really. I just want some positive tradelines reporting. So a few cards with smaller limits would be fine for me. And honestly, I think the "apply for credit as you need it" has gone the way of the dodo bird. It's easier to get credit when you don't need it. Just ask anyone who's gone through any major life changes that left them short.
That said, I really don't understand folks who look to get as much credit as possible without being thoughtful about it. I can understand apping within a certain time frame so that in inquiries fall off at the same time, but if it's moved into the "binge" territory as drkaje mentioned? That's a little beyond the beyonds. But I can understand it. If you've gotten to a place, emotionally, where a getting credit card has become a status thing, rather than a plain & simple tool, then no wonder. These very boards have stories about people who app 20x at a stretch, or want a certain card just because. There was someone who wanted an Amex Platinum, just because...and he didn't care about the $450 AF, even though he had a fairly low income and couldn't use much of the rewards. Just wanted it.
 

 

I agree with this. I can understand getting several accounts that are easy to qualify for and have low limits as part of a rebuilding strategy; you want to have newly established clean tradelines reporting positive history. I can understand coming out of rebuilding mode and apping for better cards; I just went through that. I came out of rebuilding mode and apped for four cards on the same day -- for me, this is a full-blown app spree. But, each card has a specific purpose in my wallet and is a card that I want to keep long term. In this case, I believed that getting them all at once and allowing them to age together made sense. But getting cards just for the sake of getting cards? This doesn't make sense to me. I like my cards to have purpose and to make sense in the context of an overall credit portfolio.

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
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