topic Re: App Spree, why not? in Credit Cards

App Spree, why not?

Anonymous — Sun, 14 Feb 2016 02:34:06 GMT

There appears to be some great divide over adding multiple cards in a short period of time. I realize a thick file can take a bit more w/o a huge negative impact and a thin file will feel the new cards a bit more. How long? 1 year, 2?

Downside is AAoA, right? What else?

If you add decent SLs, it is easier to keep util lower. Cards aging is a very good thing and once they are open you have at least 10 years of history.

The end game is to always use credit responsibly. Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?

My personal situation. I have a few old closed accounts that will fall off. I built my scores, got all the cards I wanted and now plan to let them grow. I did not see a huge impact. If I had waited and only brought in 1 new account every 6 months or a year - my AAoA would have taken a huge hit. Now I have some built in security to absorb the lose of closed accounts. I understand my profile is different from others.

If you dont plan on a mortgage, heloc or car purchase in a year or two - why wait?

Re: App Spree, why not?

Anonymous — Sun, 14 Feb 2016 03:49:26 GMT

I think you answered your own question with this line thus, "Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?"

No one is against doing an app spree when done in a sensible and strategic manner. But most people are easily influenced and they go crazy applying for cards they don't need nor would ever use. That is why people are often discouraged from undertaking such endeavours.

Re: App Spree, why not?

Callandra — Sun, 14 Feb 2016 04:06:39 GMT

It depends on the person. I liked adding one card at a time every six months or so but I'm conservative like that. Others may also spread apps out (vs. going on a spree) for other reasons: it looks less aggressive/desperate, able to meet bonus spend (and not having to miss a bonus or overspend to get them), etc.

Re: App Spree, why not?

Anonymous — Sun, 14 Feb 2016 04:18:52 GMT

^ truth. good points entirely.

but to be honest i am not sure i understand the reason for the post. is this a justification post? because i haven't seen much evidence of people talking down on sprees

Re: App Spree, why not?

myjourney — Sun, 14 Feb 2016 04:45:57 GMT

@Anonymous wrote:
There appears to be some great divide over adding multiple cards in a short period of time. I realize a thick file can take a bit more w/o a huge negative impact and a thin file will feel the new cards a bit more. How long? 1 year, 2?

Downside is AAoA, right? What else?

If you add decent SLs, it is easier to keep util lower. Cards aging is a very good thing and once they are open you have at least 10 years of history.

The end game is to always use credit responsibly. Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?

My personal situation. I have a few old closed accounts that will fall off. I built my scores, got all the cards I wanted and now plan to let them grow. I did not see a huge impact. If I had waited and only brought in 1 new account every 6 months or a year - my AAoA would have taken a huge hit.
Not really....An AAoA hit would be less from say someone who apps every 6 month vs someone who apps every year because in reality you grow 6 months of AAoA and then loose 6 months of AAoA vs a year which would definitely be a larger drain on AAoA
Now I have some built in security to absorb the lose of closed accounts. I understand my profile is different from others.

If you dont plan on a mortgage, heloc or car purchase in a year or two - why wait?

I have to agree that a spree has different effects based on different profiles but I also disagree that the general consences is that we think it's not good but more it's not for every profile is what we try and convey.

However if you stay around here long enough what you'll see as mentioned by the 3 post under OP

1) cards apped for not within reach but because its the quote on quote hot card with high limit giveaway

2) no plan on what was needed by that persons spending habits ...I want it...it looks cool or the best one I see...its metal (whoop de dooo)

3) I need a balance transfer because debt has ballooned ....but what wasn't mention is that 2 months ago you were ok but you went into debt bonus chasing due to 5 apps with 9k spending in 90 days and that's 6 months of your yearly salary...OMG

4) can't meet the spend for the card bonus but you can pay an high AF

Re: App Spree, why not?

MyLoFICO — Sun, 14 Feb 2016 05:45:02 GMT

I just did this. Got 8 HP in 2 hours. Got all 8 cards. (Store cards) Got them for stores I visit but they were not needed. I only had 2 cards that were more than a year old. One was almost 6 years old and one was almost 3. Thankfully I have alot of old auto loans that have been paid off and a mortgage that is almost 12 years old. My score is taking a magic carpet ride but my HP's are high (my sig) and my AAoA has dropped to right at 3.5yrs. My Util went from 58% to 18% and my paid off cards havent even hit. Once they do it should drop to about 1%. Yes, I am glad I got the cards even though I will likely not use them alot since all my purchases will be made with my cash back cards. I couldn't get approved for the major cards because I have 1 bad debt that is due to fall off in a year. So, I figured I had a year, why not grow something.

Oh, I got a Discover IT Secured too. To grow it and get my foot in the door.

Re: App Spree, why not?

Anonymous — Sun, 14 Feb 2016 06:03:56 GMT

Most (not all) cards worth getting (in my opinion) come with a great signup bonus.

Most (not all) great signup bonuses require minimum spend of $1k-$5k.

So unless someone buys a lot of gift cards or ventures into MS, at any given income/spending level there is a limit to the number of good cards a person can reasonably add at one time.

Re: App Spree, why not?

Kevin86475391 — Sun, 14 Feb 2016 06:09:37 GMT

Definitely I think it depends on the person, their preferences, and their long-term, and short-term goals.

Personally I tend to take a very slow, conservative approach to adding new lines of credit. I only average about 1 application every 1-2 years. Currently my last application was the Citi DC about 13 or 14 months ago, and while it's possible I may add another card in the next 6 months or so...I may not. The only one that looks appealing to me right now is the Amex BCE, but I'll need to see a very lucrative sign up bonus to pull the trigger.

Anyway, my reasons for not doing app sprees are:

1) Even though I do PIF, one of my favorite things about having a new card is having a 0% intro APR and the security of being able to pay slowly without depleting liquid cash if I choose to. I would never want to 'double up' on having two or more 0% intro APR cards at the same time. That would just seem like a terrible waste to me.

2) I do prefer to concentrate spending on the new card since, more likely than not it has a signup spend bonus. I don't want to overspend and I like to wait for higher bonuses - that typically require higher spend levels - so again, I wouldn't want to handle more than 1 at a time.

3) Having a new card is fun and exciting. I want to thoroughly enjoy it and gradually work it into my lifestyle and spending habits. Psychologically I'm pretty sure it's more enjoyable to me to have a single new card.

Re: App Spree, why not?

red259 — Sun, 14 Feb 2016 10:50:13 GMT

@Anonymous wrote:
There appears to be some great divide over adding multiple cards in a short period of time. I realize a thick file can take a bit more w/o a huge negative impact and a thin file will feel the new cards a bit more. How long? 1 year, 2?

Downside is AAoA, right? What else?

If you add decent SLs, it is easier to keep util lower. Cards aging is a very good thing and once they are open you have at least 10 years of history.

The end game is to always use credit responsibly. Adding cards should have meaning behind them. Not to simply apply for every bank or store card out there. But why not get the ones you want/need if you can?

My personal situation. I have a few old closed accounts that will fall off. I built my scores, got all the cards I wanted and now plan to let them grow. I did not see a huge impact. If I had waited and only brought in 1 new account every 6 months or a year - my AAoA would have taken a huge hit. Now I have some built in security to absorb the lose of closed accounts. I understand my profile is different from others.

If you dont plan on a mortgage, heloc or car purchase in a year or two - why wait?

Depends on what you consider an app spree. I will apply for four cards at most in one spree and then wait six months. Lately I have slowed down because I have many of the cards I want and now I am just moving on cards when they have a special bonus. I like to spree so inqs age together. In terms of downsides if you have a thin file you could risk AA by your current lenders, although this isn't super likely unless you don't have your credit report in shape when you pull the trigger in which case you could really shoot yourself in the foot. Also, someone with a thin file by doing a spree may end up getting toy limits on some of their later apps, which can be a real waste. For the harder core people they will try to spread their apps out based on which lenders are pulling which credit reports, so that all the inqs don't hit the same report. The other downside can be if you are going for signup bonuses and the initial spend requirements make it tough. I think one cycle I needed to come up with like 14k spend in three months which was really pushing it. Not something I would do again.

Re: App Spree, why not?

noobody — Sun, 14 Feb 2016 11:34:35 GMT

I think every one new to credit should do a app spree at 6 month mark, ie: get 5 more accounts, because your AAoA is next to zero to begin with, and will not take much loss after spree.

now 12 month later you if add one more account, it will only take 2 month hit

You build a bullet proof AAoA this way

Re: App Spree, why not?

Anonymous — Sun, 14 Feb 2016 12:23:40 GMT

It worked for me for a specific reason. Being in Chapter 13 all my old closed accounts were aging off so I wanted to add new accounts during my rebuilding so everything could age at once. My AAofA did take a big hit, but it was so worth it for me. I now have great cards and for the most part excellent limits. I will never have the need to spree again. My future plans are to combine some cards and close some that have not proven useful. That being said, I am in no hurry to do either. My most important goal now is to get my scores back up to where they were before my app sprees. This forum is a fantastic place to learn from each other.

Re: App Spree, why not?

redpat — Sun, 14 Feb 2016 14:01:12 GMT

Funny, never heard of a app spree before until reading that term on these forums.

Most are done like a Shot Gun wedding, no planning.....

Re: App Spree, why not?

Anonymous — Sun, 14 Feb 2016 17:50:07 GMT

I apply for one or two cards every six months to a year, and will continue doing so until I'm done. CSP and EDP are next on my wish list. If my credit supports it (and that's a big one!) I'll go for it. Then I'll be done since I'll have everything I need in credit cards and I'll have a regular rotation of 4 cards. Don't need more than that.

Re: App Spree, why not?

red259 — Sun, 14 Feb 2016 22:25:52 GMT

@noobody wrote:
I think every one new to credit should do a app spree at 6 month mark, ie: get 5 more accounts, because your AAoA is next to zero to begin with, and will not take much loss after spree.

now 12 month later you if add one more account, it will only take 2 month hit

You build a bullet proof AAoA this way

While there are people who condone this method I think you just end up with mostly crap cards in the beginning when you do stuff like this.I rather have quality cards over quanity. I was quite successful in my first six months just by picking up two cards. By the one year mark I was elgible for every card I wanted. Under above method you are making it unlikely that you can get a chase credit card at all for two years. In addition, when you do a major spree like this then if a great offer comes out two months later you would have a lot harder time moving on it. We can't always predict when the next big card will come around, so it is best to always keep the door opening to a sudden app.

Re: App Spree, why not?

Anonymous — Sun, 14 Feb 2016 22:58:11 GMT

@noobody wrote:
I think every one new to credit should do a app spree at 6 month mark, ie: get 5 more accounts, because your AAoA is next to zero to begin with, and will not take much loss after spree.

now 12 month later you if add one more account, it will only take 2 month hit

You build a bullet proof AAoA this way

It all depends on what your credit profile supports. If all you aplply for is crap cards, then crap cards is all you'll get. Wasting hard pulls on store cards and rebuilder cards can harm in the long run, whereas if you go for one or two beginner cards (Barclay Mastercard being a good example, or a simple no-rewards Capital One Platinum) and keep those paid and in good standing you're better off than if you had applied for 8-10 from comenity. If you must get store cards, get one or two then lose them when you get better credit cards down the road. As it is I've already dumped Walmart, and will dump Care Credit (Amazon is still 50/50) later.

Re: App Spree, why not?

Exonumist — Sun, 14 Feb 2016 23:17:54 GMT

Mini sprees are great to build a profile quickly, but a full blown spree with 5+ apps is ridiculous. The most I've gotten at once was three cards. Then I'd wait six months or more and apply for one or two more. At this point I have a great profile and I don't bother unless a sign up bonus is too good to pass up. I went from no credit at all to 750+ FICO and all prime cards within a year and a half two years. Now I'm about 3.5/4 years in and you can see my stats below. Through credit cards I've had a $600 phone replaced when it was a few weeks old, car rental damage paid without using my insurance, they've helped me solve disputes with not so honest merchants, free travel perks like airline lounges, etc. Despite the ridiculous amount of rewards and benefits I get from my cards I've never paid a penny of interest and I've never been denied. RESPONSIBLE sprees will help you in the long run. Responsibility is the key when it comes to anything credit related.

Re: App Spree, why not?

Callandra — Mon, 15 Feb 2016 01:40:47 GMT

@Anonymous wrote:
@noobody wrote:
I think every one new to credit should do a app spree at 6 month mark, ie: get 5 more accounts, because your AAoA is next to zero to begin with, and will not take much loss after spree.

now 12 month later you if add one more account, it will only take 2 month hit

You build a bullet proof AAoA this way
It all depends on what your credit profile supports. If all you aplply for is crap cards, then crap cards is all you'll get. Wasting hard pulls on store cards and rebuilder cards can harm in the long run, whereas if you go for one or two beginner cards (Barclay Mastercard being a good example, or a simple no-rewards Capital One Platinum) and keep those paid and in good standing you're better off than if you had applied for 8-10 from comenity. If you must get store cards, get one or two then lose them when you get better credit cards down the road. As it is I've already dumped Walmart, and will dump Care Credit (Amazon is still 50/50) later.

100% agree. A lot of times those who apply for 5+ cards in the beginning can only get store cards/"crap" cards. I only ever had one store card (and I regret it, from the SCT) which was Victoria's Secret. I built with that and Barclays Rewards (very good starter card) and then I got Freedom 6 months later. Since then I've been able to get every card I've ever wanted (*points to sig*), all instant approvals. Maybe my AAoA isn't that great but I'm not stuck with cards I don't need/like and my report isn't cluttered with so many accounts. So I'm happy with how I did things.