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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.


Walt_K wrote:

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.


Very good point!!!

 




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marty56
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Re: "App Spree" Logic..help me understand this.


drkaje wrote:

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



If I could go back in time, I would have never applied for my 2nd CC after the first one.  I view app sprees like cheating on a diet.  After your first bowl of ice cream, the 2nd one is much easier to justify andf goes down just as good.

09/12/2013 FICO: EQ: 772 EX:813 TU:752
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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: "App Spree" Logic..help me understand this.

Rofl @ Marty! So true!

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ACsteel
Posts: 235
Registered: ‎08-19-2012
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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?


Yes you are actually right, going on an app spree is not a good idea, you should just apply for credit with a prudent sense of what you need and build your loyalty and credit with that company to have good credit history, hence the word "history".  The credit game is a game you have to play wisely, but some people make foolish decisions getting a mass number of cards that ends up back firing on them.  If the time is right, such as your inquiries are low, and your credit/financial grounding is good, then try for a card or two or try to upgrade your existing cards via credit limits or product changes.


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Revelate
Posts: 8,968
Registered: ‎12-30-2011
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Re: "App Spree" Logic..help me understand this.

[ Edited ]

angelnyc 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"? 

 

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?


Yes you are actually right, going on an app spree is not a good idea, you should just apply for credit with a prudent sense of what you need and build your loyalty and credit with that company to have good credit history, hence the word "history".  The credit game is a game you have to play wisely, but some people make foolish decisions getting a mass number of cards that ends up back firing on them.  If the time is right, such as your inquiries are low, and your credit/financial grounding is good, then try for a card or two or try to upgrade your existing cards via credit limits or product changes.


I posted an analysis a while back with some math; however, I fully agree with you that cards which aren't really going to be used, aren't worthwhile.   I also agree that building a relationship with individual lenders is important, and pretty much all of us have finite financial resources which limit the number of tradelines which can be reasonably utilized.

 

That said, if there's a tradeline that you want, it behooves you to acquire it as soon as possible.  If there's say 3 cards you want (in my case, that would be Amex BCP, Chase SP, and BOFA Travel Priveleges... maybe USBank Cash+ for a fourth) and if I had the credit profile to be approved for them, it's way better for me to just establish them all in one shot when we're talking about how one's future credit report looks even one year out, let alone 2-3 years out.

 

Above all, you're right in suggesting one has to have a plan, and I'm starting to be a big proponent of PC's as well (about the only reason I'm considering a Freedom right now), but if you're going to want a tradeline, and you can get approved for it now, unless there's a big-ticket item in the nearish term (mortgage, maybe auto) just go get it now; one's report, and therefore FICO score, will appreciate it later.

 

 

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Senior Contributor
Open123
Posts: 4,155
Registered: ‎02-23-2011
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Re: "App Spree" Logic..help me understand this.

The main reason for bunching apps together is for the inquiries to fall off (24 months), and to no longer count (12 months) on credit scoring.  Moreover, the sooner you have accounts opened and aging (assuming you'd want to keep them), the better off your scoring will be in the long run.

 

For me, when my creditors review my profile, I want it readily apparent to them on manual review that I've got plenty of other options with whom I can do business.  Also, I want them all to see that I've got a history of closing accounts without hesitation.

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improvingmycredit
Posts: 1,384
Registered: ‎07-12-2011
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Re: "App Spree" Logic..help me understand this.

I'm not a proponent of "app sprees".  I do however believe that those starting out with credit are going to accumulate inqs trying to just get started with the lenders out there.  I think apping specific strategic credit lines at once really benefits the newbe in that the apps are all accumulated at once and fall off at once.  Also the accounts approved all age together setting a better base for AAoA because subsequent later accounts will hurt less as the credit profile grows.  Assuming that later apps are also strategic and targeted to an individuals needs later in life.  JMHO.  


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Middleswarth
Posts: 227
Registered: ‎08-31-2011
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Re: "App Spree" Logic..help me understand this.

I have no problem with app sprees as long as you have a plan.  Back in July I apped for 14 cards.  I had a list of over 20 that I was interested in.  I divided the list into categories and basically apped each card until I got one in each category.  I got 3 store cards for stores I actually shop at, I got an American Airlines card which I use (6 months no interest for every purchase over $150 - can't beat that), I got a Visa, MC, and Discover.  I then reconned a few and got one duplicate (US Air Ways).  My CL increased from $1000 to $21000 in one afternoon!

 

I did this spree after 8 months in the garden with my 2 Cap One cards.  I've since closed on of the Cap One cards and plan to close the other in a week or 2. 

 

I ended up with a couple really nice cards (NFCU and USAA) as well as my foot in the door with Discover and GE.  

 

The method to my madness is simple.  All the INQ will fall off completely in 2 years and my AAoA will be better (all cards age together).  My plan is to purchase a house after my report is clean.  Had I not done the app spree, I would not have either not started my relationship with all these companies before my house purchase or my report would not be as clean as I want when I app for the mortgage. 

 

IMO, app sprees work as long as you have a plan.  If you app just because you have an itch, you don't have a plan.  You have a problem.

Valued Contributor
Crashem
Posts: 3,098
Registered: ‎01-26-2012
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Re: "App Spree" Logic..help me understand this.

On iPad so forgive formatting.  I personally think app sprees make sense if well planned.  Have to assume cards are ones you want/use.  Otherwise not worth it.  With new cards, you lose points from inquiries, reduced aaoa, and new account.  So lets compare app spree vs. Spread out.  Inquiries hurt you for up to 1 year.  Hits from inquiries go down after 3-4 one if not before.  However you will hit a wall with auto rejections if you have too many.  Aaoa reductions are basically thesame in all cases.  Please remember aaoa seem to round down so you can calculate post app aaoa.  Might be worth spreading out apps because you can app so aaoa doesn't reduce below rounding.  Finally with new account hit. It is temporary thing that lasts around 6 months.  It seems to be the same whether it is one account or multiple accounts.  So app spree seems to have advantage here.

 

The main reason for app sprees is that you can control your score a lot more.  You can plan and set up optimal utilization fico wise.  Yes new apps see the inquiries but they don't see the new approvals.  aaoa will take hit, but apps would not see aaoa drop as all apps will be in before any new accounts show up.  No new account hit for same reason.  Inquiry hit is down to a few points after a bit.  Mostly though a good app spree shows you did our planning and understand which cra might get pulled and can optimize that as well.

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New Contributor
xi
Posts: 64
Registered: ‎05-18-2012
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Re: "App Spree" Logic..help me understand this.

[ Edited ]

Just did my first app spree ever over the past couple weeks to upgrade my old Capital One cards. Ended up with 368,000 airline miles/points (many of which could be converted to cash), $750 cash, and an extra $120k in revolving credit lines. Not sure what the "500-1000 limit" thing is about...averaging it out my average limit on new cards is probably $13k, but that's because two cards were $7k limits despite many others being $13k and $16k limits.

 

My previously best (and only) rewards card was the GM rewards card, which did nothing for me as I wasn't planning on buying a GM car anytime soon. My previous highest credit limit was $3,500.

 

Now I have AMEX Starwoods personal/business card, Chase Sapphire/Freedom, Penfed Plat Rewards/Travel Rewards, Citi AA Visa/AA AMEX, and others. Now my highest limit is now $16,000 (one of the AMEXs) and I'm reasonably sure they'll bump that to $25k in 61 days. 

 

So, my logic was that I wanted rewards cards, points, miles, cash, cards with nice limits that I didn't have to watch every second if I made a semi-large purchase, and a large amount of revolving credit. 

 

Oh, and my FICO score (via scorewatch) didn't even go down a point from new inquiries. Though it did go up presumably from a decrease in utilization to 1% from 11%. Though the decrease from getting 2 inquiries on EQ may have been offset by the utilization.  


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