topic Re: Application Spree - How badly will this hurt?? in Credit Cards

Application Spree - How badly will this hurt??

Anonymous — Sun, 20 Jul 2008 21:25:28 GMT

Since finding this site I have become obsessed. I read it all day and night,even when I am at work. I talk about it to my friends until their eyes glaze over and am getting really impatient to see the fruition of my work.

Problem is, I have only been working on it for a month and so am not really going to see any improvements for at least 6 months. I am actually thinking that it may actually be a year to see any significant improvements because I went application crazy and applied for like 10-15 (maybe even 20, I can't even count) new cards this weekend, with most of them going onto experian and transunion. I am so scared to see what this is going to do to my already low scores.

Also, I did this at the worst time. I am actually going to be paying off about 6 collection agencies in September,was going to try PFD but if that didn' tgo through I was going to pay anyways. I most probably should have waited until I had paid these because I most probably would have had better luck. I got rejected from most cards but got approved for some subprimes.

Here is the thing, I really really want to get a Prime card by May 2009.Considering my crazy app spree, this weekend, when would be the best time to apply for this card if my scores do increase?

Also, I am feeling really upset about applying to so many cards this weekend.I'm not the only one who has done this am I? How badly will this hurt me?

Re: Application Spree - How badly will this hurt??

Anonymous — Sun, 20 Jul 2008 23:17:49 GMT

Hi. Wow, that was some apping spree! No you aren't the only person to have done that, but it does seem that once you are on the road to credit recovery the urge can be sort of addicting. You just have to hold strong now and resist. It's really not possible to guess exactly how much this will affect your score, but it's going to be a while before you recover from all those inquiries. Even if they aren't hurting you after a year, any potential creditor will see them for 2 years. At this point, I wouldn't app for ANYTHING else at all and I'm not sure what the others will say, but I don't think I'd app in May either, since that will only be 10 months from now...sorry.

Message Edited by UpUpUp on 07-20-2008 07:17 PM

Re: Application Spree - How badly will this hurt??

Anonymous — Sun, 20 Jul 2008 23:18:40 GMT

We all have been there i know i'm taking a break for like 2 years unless i get some pre approved offers in the mail lol

Re: Application Spree - How badly will this hurt??

haulingthescoreup — Sun, 20 Jul 2008 23:24:57 GMT

Well, you won't be the first forum member who has done this!

You can only get so many points off for inqs, and that lasts for a year and then stops. If any resulted in new accounts, you'll lose points for new accounts, although that gets better through the year.

You will definitely have some explaining to do to lenders when you apply again in the future, unless you're willing to wait 2 years until the inqs have completely vanished.

In the meantime, the thing to do is to take a half-hour or so and write down what you want to have happen with your credit, and what it will take to make it happen. So you might say that you want a house in two years, a car loan in 18 months; you'll need a 700 for the car loan and a 720 for the mortgage. (I'm pulling these numbers completely out of the air, but you get the idea.) And maybe you'd like to get 3 decent cards in 2009, and you'll need a 680 at a minimum, and then you can close down fee cards or whatever. And to make these things happen, you'll need to pay off all your cards, and only let a few report a minimum, and so forth, plus do a bunch of GW'ing and PFD'ing to clean up what's holding you down now. (Don't mess with the inqs, by the way, that usually blows up in a spectacularly ugly way.)

Without thinking it out ahead of time, doing some research to see what's doable, and writing it down as a promise to yourself, you can shoot off both feet, one toe at a time by letting frustration take over. These forums can teach you a lot, but getting too deeply into the Credit Cards forum in particular, and getting wrapped up in the look-what-I-got frenzy can really sabotage your plans! You may even have to avoid this one and stick to the other forums for a while if the itch gets too strong.

Good luck--you can do it! A temporary set-back, as long as you take control of your credit rebuilding.

Re: Application Spree - How badly will this hurt??

Anonymous — Sun, 20 Jul 2008 23:31:48 GMT

Thanks for all the advice.

Hauling, that was such a good idea. I am going to write up a plan now.

I know I would like to buy a home soon,maybe 2010. I graduate in 2009 and so a year in a real job should let me build up a nice deposit.

Here is my problem though. None of my CL's are high. Should I just try and get CLI's for 2 years before I get anymore inquires?

I would like to get a card with a higher CL by May because I will be traveling alot with my job when I graduate and would like to be able to charge the tickets and get some sort of airmile points rewards.

Have I Scre**d myself by going on my app spree to early?

Re: Application Spree - How badly will this hurt??

haulingthescoreup — Sun, 20 Jul 2008 23:45:50 GMT

I'd stick with what you have for now, where every month of ontime payment increases your good history, and work for CLI's as your credit improves. You might find that in six months or a year, your "good behavior" might get some nice results. You might even find that you qualify for a good card by then, but keep an eye on your mortgage date, and also make a promise to yourself that you won't get a crappy card just to get a card. Tell yourself that you're worth better than that!

You're OK, lots of credit gardeners have had a set-back along the way. You might want to grit your teeth and pay for all three scores at the end of the month just to see where you really are, and if there's much damage, it will be a handy reality check for the future. The reason I mentioned the end of the month is because I saw that myFICO has a 20% off code for Credit Complete that expires July 31, so you could save some bucks. Read through the positive and negative comments on the second screen, especially the negatives, and figure how you can start working on those.

But time cures everything, especially in credit land. It's just hard for those of us who weren't blessed with patience!

Re: Application Spree - How badly will this hurt??

Anonymous — Sun, 20 Jul 2008 23:51:54 GMT

Bella1980 wrote:
Thanks for all the advice.

Hauling, that was such a good idea. I am going to write up a plan now.

I know I would like to buy a home soon,maybe 2010. I graduate in 2009 and so a year in a real job should let me build up a nice deposit.

Here is my problem though. None of my CL's are high. Should I just try and get CLI's for 2 years before I get anymore inquires?

Problem here is some/most CCC will do a hard inquiry for a CLI, if you ask for it. Some will offer it after automated account reviews, every 6 months or so. Those are soft pulls.

I would like to get a card with a higher CL by May because I will be traveling alot with my job when I graduate and would like to be able to charge the tickets and get some sort of airmile points rewards.

You already know your job? Do they by chance use a corporate Amex or similar? That will result in a hard pull too, but if you get it the limit is nearly non-existant for most corporate cards.

Have I Scre**d myself by going on my app spree to early?

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 00:02:21 GMT

Gordon, no I don't know my job,sorry for the confusion.

I am currently finishing up law school, and that will leave me with $100,000 total in student loan debt, not looking forward to that and not sure how that will effect my reports.

I will be traveling alot because my family is located all over the world now and I'm hoping to get a job that allows me to travel alot.

I am also thinking about going on to get a another degree but this would leave me with another $50,000 in debt, which I am really scared about. Actually, the $100K is already making me sweat but I'll battle that when I get to it.

I just pulled my Fico scores yesterday so I don't know if pulling them at the end of the month is too soon. I am planning on pulling them in September again to see where things stand.

I am hopeful that things will be ok. I will try and research cards that I want to apply for in the future so I know where I have to be when I apply.

Also, I should make sure that I have no recent inqs for apps or new accts for at least a year before I try to buy a house?

Re: Application Spree - How badly will this hurt??

haulingthescoreup — Mon, 21 Jul 2008 00:08:31 GMT

A year is the ideal interval, especially if you have had, umm, a big blob of inqs still showing on your reports.

But if it will be a while before you go for a mortgage, and the weekend's inqs will have fallen off, I don't think it's necessarily a disaster to have gotten one good card during that year. A new account does drop your scores for a while, but the main issue is that mortgage lenders don't want to think that you're going to go hunting for credit everywhere you can find it, while you're trying to make your monthly house note.

I'd say the "rules" might change a bit in the next several years due to the mortgage disasters of the past year.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 00:38:20 GMT

Bella1980 wrote:
Since finding this site I have become obsessed. I read it all day and night,even when I am at work. I talk about it to my friends until their eyes glaze over and am getting really impatient to see the fruition of my work.

Problem is, I have only been working on it for a month and so am not really going to see any improvements for at least 6 months. I am actually thinking that it may actually be a year to see any significant improvements because I went application crazy and applied for like 10-15 (maybe even 20, I can't even count) new cards this weekend, with most of them going onto experian and transunion. I am so scared to see what this is going to do to my already low scores.

Ouch, but after one year they don't really figure into FICO score. After 2 they drop from CR.

Also, I did this at the worst time. I am actually going to be paying off about 6 collection agencies in September,was going to try PFD but if that didn' tgo through I was going to pay anyways. I most probably should have waited until I had paid these because I most probably would have had better luck. I got rejected from most cards but got approved for some subprimes.

Don't forget to DV and follow up with GW letters as soon as Collections report PIF. Even without a PFD they will usually not verify and/or allow a goodwill off your CR.

Here is the thing, I really really want to get a Prime card by May 2009.Considering my crazy app spree, this weekend, when would be the best time to apply for this card if my scores do increase?

If all the collections are PIF and 2 years old, your INQs will hurt, but depends on the CCC.

Also, I am feeling really upset about applying to so many cards this weekend.I'm not the only one who has done this am I? How badly will this hurt me?

As above, a one year wait for scoring, 2 year wait for complete drop from CR.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 00:42:43 GMT

Bella1980 wrote:
Gordon, no I don't know my job,sorry for the confusion.

I am currently finishing up law school, and that will leave me with $100,000 total in student loan debt, not looking forward to that and not sure how that will effect my reports.

I will be traveling alot because my family is located all over the world now and I'm hoping to get a job that allows me to travel alot.

I am also thinking about going on to get a another degree but this would leave me with another $50,000 in debt, which I am really scared about. Actually, the $100K is already making me sweat but I'll battle that when I get to it.

That's an awful lot of debt. Education is a personal choice, but... maybe you are looking at a BigLaw job in the $150k-200k range. Another degree? IANAL but not sure how another degree will help your earning potential.

I just pulled my Fico scores yesterday so I don't know if pulling them at the end of the month is too soon. I am planning on pulling them in September again to see where things stand.

Need to know if your CR show all the apps/INQs. If they do, then you know where you stand. Also any new CC probably isn't showing yet. Those new TLs will drop your score most likely initially due to avg age of accounts. After a couple of months scores should begin to rise assuming Pays as agreed.

I am hopeful that things will be ok. I will try and research cards that I want to apply for in the future so I know where I have to be when I apply.

Also, I should make sure that I have no recent inqs for apps or new accts for at least a year before I try to buy a house?

Again, it depends. An automated approval will look at your scores, which will improve one year from all INQs and all new TLs reported assuming Pays as agreed and low UTIL. 2 years after INQs, you will have a much cleaner CR.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 00:50:24 GMT

Don't worry. You got some great advice and haulings idea of writing things down is a good one. I think you'll be fine by the time you look to buy a house. If you are looking to purchase in 2010 you can try to time it so that these inquiries will have fallen off by then. Meanwhile, any manual reviews of your credit will see the inquiries, so that's why you do not want to collect anymore. I would also stick to the cards you have already and treat them very, very well. Hopefully you'll be able to obtain CLI's from those that are not stingy about giving them. Do check around here, most of the folks here can tell you if you'll incur a hard inquiry for asking for CLI by letting them know what card you are about to ask for a CLI on.

Did you get an approval for anything during the app spree? Sorry if you already mentioned it, if so, I missed that part.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 01:38:06 GMT

Well I didn't really want to do biglaw but the paychecks are enticing....though they tax the crap out of those big wages.

I was thinking public interest, I think if I get a job making $50,000 or less, my school will pay off the loans. My problem is I don't really want to be a lawyer anymore,but will most probably suck it up for a few years in order to pay off some debt and then go on to something I love.

Here are the results of my app spree this weekend:

1. Macy's- Declined...really baffled and upset at this :-(

2. National City- Declined

3. Walmart storecard- Approved $500

4. Discover-Declined

5. HSBC Discovercard - after my decline from Discover - Approved $300

6. Ebay MC- Declined

7. Paypal credit- afterdecline from Ebay MC - Approved $300

8. Citibank- Declined....have my personal accts with them...thought they may say yes

9. Bloomingdales- Declined or 30 day message..can't remember

10. J C Penney- Declined

11. Amex- Declined

12. US Airmiles (Barclays) - Declined....got 30 day message so pretty sure declined

13. Chase - Declined ....got 30 day message so pretty sure declined

14. Nordstrom- Declined....got message as well

15. Suntrust bank - Declined...got message( been with them for over 11 years).

16. Amsouth- then took me to a bank called Regions ....pretty sure declined

17. Sears- Can't remember if straight decline or message

18. First National Bank of Omaha - Declined....no idea why I applied for this

19. A credit union I am not a member of....can't even remember the name :-(

20. Same as above.....feeling really really bad right now

21. ESPN Wamu- Declined

I feel like there were 2 or 3 more apps to banks I can't even remember now!!OMG!! I am awful. I didn't even have a flying pigs chance in getting these cards, that is what makes it so much more disheartening!!

Last month I apped for and got:

Target redcard

Orchard bankcard

Hooters MC

I also bought something with Crownjewellers to give me a higher utility %.

OMG, I applied to more than I thought and was stupid in my app choices. I read whogavemecredit after the spree!!! I am such a dumbass.

So my plan now is:

1. Work on paying off baddies and doing PFDs and GWS.

2. Paying on time on all accounts.

3. Only charging minimum amounts on 2 of the cards I have and PIF.

4. Letting my accounts age.

5. NO more apping.

5. I will try again for a prime card in 9-12 months, hopefully one that does automatic approvals or all my inquiries will make themweary of me.

Feeling really stupid abt my apps.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 01:52:28 GMT

Don't be so hard on yourself. What's done is done and you can't change it. Hell, I just apped for a discover card today. I got it, but I promised myself i would NOT apply for anything else until I applied for my mortgage in 2009. It happens. Atleast you did get a few cards from this spree and last month. Just take really good care of them. Never hold high balances and just learn from the experience. I think you'll find that here on this site, everyone has been through some sort of situation or hardship that brought them here and you won't get too many people judging you or putting your down. You will get some honest, sound advice that all dish out with sincerest hopes of being a help to you and your financial future. Even if the advice is short at times, just try to take it and learn from it.

Now sit on your hands and don't allow those fingers to type in anymore credit card websites. You are cut off for a good while. NO more!

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 01:59:12 GMT

OMG Bella chill out ok take a break for a year or 2 well now i don't feel so bad i think i applied for like 10 cards this past month. Received 4 out of 10 not bad i guess. I'm sure this forum was a big influence to your apply spree. Just work on your credit now an pay your bills on time for the next 2 years until your scores go up.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 02:01:09 GMT

mjbfan79 wrote:
OMG Bella chill out ok take a break for a year or 2

I totally agree with this statement. I would wait atleast a year or more before applying for anything else. Is there are specific reason your goal is to obtain a prime card by May? Or was that just a personal goal? If it's personal, def. hold off!

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 02:07:43 GMT

UpUpUp wrote:

Really 2 years cause if she waits a year these inquiries will still show an she stands a chance of being denied for 2 many inquiries so i say wait 2 years.

Message Edited by mjbfan79 on 07-20-2008 07:07 PM

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 02:19:28 GMT

There is no real reason for me wanting to get a primecard by May if I am honest with myself. I am not planning on really using the cards I get, just trying to improve my score. I thought if I got a prime I would get a higher CL,which would help my score grow faster. Also, thought the airmiles I would get would be nice when I buy my airplane tickets.

OMG, I just had a thought. I will need to take out a BARLoan in April or May of next year for about $8,000 to pay for the bar and bar classes.How are loans looked at? Frigging eh,I forgot about this.

You guys have convinced me not to apply for any more credit for at least a year,except for my barloan.

If I am honest with myself I really really want to buy a house. Because I have all these inquiries I need to wait until July/August 2010 for the inquiries to drop off. I guess I need to focus on that dream instead of the short term gratification of getting approved for a credit card.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 02:20:43 GMT

Also Up, congrats on the Discovercard.

Re: Application Spree - How badly will this hurt??

Anonymous — Mon, 21 Jul 2008 02:25:46 GMT

Me an your scores are almost the same BUT i have a BK on my CR which is due to fall off in october so i didn't evan attempt to try out for the big prime cards cause i knew they would have shot be down.