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Established Member
Posts: 20
Registered: ‎04-20-2008
0

yikes, what did i do?

Howdy folks,
 
 
                  April was a good month for me when it came to credit. It had been years since I even thought about getting any decent cards. I have a few older baddies but have paid off several cars and maintained my subprime cards well.
 
So as a goof I applied for amex delta and was approved for 2000.00. Then I was hooked on the approval process. I then applied for usaa amex and mc. Got two cards for 5000.00 apiece. Then bmw visa for 4000.00. Lastly kays for 3500.00
 
So about 20 days later after coming back form vacation and P.I.F. my amex and usaa I checked my fico and i expected it to drop some on average around 30-35 points? Is this about right? How long will it take for my TL's will improve my score?
 
But here is the odd and depressing part. I applied online at usaa to refinance my car, they declined. Listing inquiries and paid late accounts. Also I own a buisness and AMEX declined a business card. What gives? I know too many inquries are partly to blame but I'm not getting usaa declining a secured car loan when they just trusted me with 10000.00 in unsecured debt. Also is running 3000.00 a month thru the usaa card and PIF twice a month make me a good customer for them?
 
Thank you for your insights.
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: yikes, what did i do?

Sounds like your recent app spree spooked USAA and AMEX-
 
I waited for 8 months after opening my first AMEX before asking for a business card- 
Valued Contributor
Posts: 2,374
Registered: ‎03-15-2007
0

Re: yikes, what did i do?

AMEX gets really gun-shy really fast about anything that potentially damages your credit (like a late payment anywhere, a lot of inquiries, balances on other cards surging, and so forth). It's happened to plenty of people...along with the dreaded financial review which probes your financial life alien-style.
- - - -
in a credit-scoring postnuclear Stone Age...
Frequent Contributor
Posts: 263
Registered: ‎03-27-2008
0

Re: yikes, what did i do?

USAA is also really picky with whom they loan/lend money too (not credit cards, their actual loans). They probably didn't care for your score drop or the inquiries either.
FICO 6/2/08 , EX 754, 5/2 TU 720 EQ 722
Frequent Contributor
Posts: 286
Registered: ‎05-02-2007
0

Re: yikes, what did i do?

Can I say something?  I know this forum is meant to be supportive and encouraging, and I want to continue that culture.  However, it has to be said that the pervasive, impulsive tendency of people to overextend their credit is truly a problem.  The OP noted that he had had some credit problems in the past--noting subprime cards--and that he had avoided further delinquency and essentially had begun to rebuild his credit.  Lo and behold, as soon as one card was approved--well, that started the apping spree.  See the problem?
 
Many pundits comment that card companies are correct in holding the views that they do about 'defaulters'--i.e, past performance predicts future behavior.  There are people who have legitimately fallen on hard times and have struggled to recover, not because they are 'defaulters' but because they get lumped with people who cannot handle debt. 
 
What's my point here to the OP?  The OP asked 'what do I do'.  Well, you should have stopped at the Amex, and for sure no further than the USAA.  But you didn't.  Don't destroy all the good you've done for yourself.  Show credit issuers that you've moved past any problems you previously had.  But if you continue to demonstrate that their forgiveness will only facilitate regression to old ways, that won't help your situation.
Established Contributor
Posts: 729
Registered: ‎10-21-2007
0

Re: yikes, what did i do?

Amen, ChemGuy!

The OP even stated the apping for Amex delta was a "goof" and that he was "hooked on the approval" process....
 
Senior Contributor
Posts: 3,279
Registered: ‎08-03-2007
0

Re: yikes, what did i do?

I also agree, but I did the same thing.

After so many years of denials, I couldn't stop at one approval. I opened around 10 or so prime accounts within the course of a couple months.

After all those though, that urge went away since I know I can get whatever I want credit-wise now. Except, of course, for a "real" Discover card.

Discover is my white whale.
Here we go again...
Regular Contributor
Posts: 153
Registered: ‎12-04-2007
0

Re: yikes, what did i do?

I had an App spree last year. However my App spree was a calculated move, Not a goof, or a Additicion to approval process. I applied for a lowes card for financial reasons to take advantage of 6 months same as cash, aditional 10% off of the purchase price (which I wound up getting an additional 10% on top of the original 10%), Next I had alot of high ticket price purchases coming up so Amex Blue sky miles card was next App. figured my next vacation would be at the expense of the c.c.c. this was a bit of a downfall but just a side step. I wanted to set up my child daycare to pay monthly on amex card to get the additional 1000 miles per month only to find out they do not accept amex so 3rd app was to capital one miles card for same reason take advantage of the $1000 I am putting out for daycare and turning it into my next vacation with the family. I may have taken a dip in fico's points for this year only to enjoy a free vacation at the expense of c.c.c. next year when my fico point will have returned. Never apply for cards just to get more C.L.'s to spend. What says you will not look at the cli's and go on a spending spree next since your obsession for app spree has come to an end. It's that very compulsive behavior that gets most in trouble fiscally in the first place.
 
 
Established Contributor
Posts: 832
Registered: ‎03-20-2008
0

Re: yikes, what did i do?



ChemGuy wrote:
Can I say something?  I know this forum is meant to be supportive and encouraging, and I want to continue that culture.  However, it has to be said that the pervasive, impulsive tendency of people to overextend their credit is truly a problem.  The OP noted that he had had some credit problems in the past--noting subprime cards--and that he had avoided further delinquency and essentially had begun to rebuild his credit.  Lo and behold, as soon as one card was approved--well, that started the apping spree.  See the problem?
 
Many pundits comment that card companies are correct in holding the views that they do about 'defaulters'--i.e, past performance predicts future behavior.  There are people who have legitimately fallen on hard times and have struggled to recover, not because they are 'defaulters' but because they get lumped with people who cannot handle debt. 
 
What's my point here to the OP?  The OP asked 'what do I do'.  Well, you should have stopped at the Amex, and for sure no further than the USAA.  But you didn't.  Don't destroy all the good you've done for yourself.  Show credit issuers that you've moved past any problems you previously had.  But if you continue to demonstrate that their forgiveness will only facilitate regression to old ways, that won't help your situation.


I agree with everything you have said. Time to garden and stop apping and/or asking for cli's.
Senior Contributor
Posts: 3,279
Registered: ‎08-03-2007
0

Re: yikes, what did i do?



mrlimo wrote:
I had an App spree last year. However my App spree was a calculated move, Not a goof, or a Additicion to approval process. I applied for a lowes card for financial reasons to take advantage of 6 months same as cash, aditional 10% off of the purchase price (which I wound up getting an additional 10% on top of the original 10%), Next I had alot of high ticket price purchases coming up so Amex Blue sky miles card was next App. figured my next vacation would be at the expense of the c.c.c. this was a bit of a downfall but just a side step. I wanted to set up my child daycare to pay monthly on amex card to get the additional 1000 miles per month only to find out they do not accept amex so 3rd app was to capital one miles card for same reason take advantage of the $1000 I am putting out for daycare and turning it into my next vacation with the family. I may have taken a dip in fico's points for this year only to enjoy a free vacation at the expense of c.c.c. next year when my fico point will have returned. Never apply for cards just to get more C.L.'s to spend. What says you will not look at the cli's and go on a spending spree next since your obsession for app spree has come to an end. It's that very compulsive behavior that gets most in trouble fiscally in the first place.





I agree completely. Several of my prime approvals were for the purposes of taking advantage of promotions also.

I did my Citi card for 15 months 0 interest on BTs. You can't beat that. It's probably saving me quite a bit in interest on $2600, which was previously accruing 20 some percent interest between HSBC and Hooters.
Here we go again...
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