topic Re: Why go on an App Spree? in Credit Cards

Why go on an App Spree?

fungoman — Sat, 22 Mar 2014 13:57:48 GMT

Ok, I am new here and have been posting for a couple of weeks now. What I cant understand is why people go on these "app sprees"? What is the point of opening up 6 credit cards at one time?

Re: Why go on an App Spree?

Open123 — Sat, 22 Mar 2014 14:03:03 GMT

Ah, mainly for sign-up bonuses.

For example:

1. Citi AA - 50K bonus.

2. Barclay Arrival - 40K bonus or US Air 40K bonus.

3. Chase CSP - 40K bonus.

4. Amex PR Gold - 50K or 100K bonus.

I see no reason for 6, since the only compelling general public offers (excluding CUs and Military associations) are from either Chase, Citi, Amex or Barclays. The spree spreads out the HPs (Citi pulls Ex, Chase EQ, Barclay TU and Amex Ex) and allow for the accounts to age concurrently with all HPs falling off at the same time.

You shorten the score purgatory period.

Re: Why go on an App Spree?

lg8302ch — Sat, 22 Mar 2014 14:05:47 GMT

Well I found out the hard way. Got 4 cards in a spree in 2013 of which 2 with horrible terms ..Freedom with 22,99% APR and Discover with 2,5K limit ....(even with scores in the high 700) for me lesson learnt - no more sprees as I do not only want approvals but also best terms and decent limits. That happens only if I space out my apps. I am now on a 1 card every 6 months and got nice limits and best terms ever since

Re: Why go on an App Spree?

fungoman — Sat, 22 Mar 2014 14:05:58 GMT

That is quite a bit of spending to have to put through some of these cards in a short period. The average income from what I have gathered on most people posting around here can't support that type of spending. Doesnt adding all these cards at the same time crush your AAoA?

Re: Why go on an App Spree?

fungoman — Sat, 22 Mar 2014 14:07:50 GMT

@lg8302ch wrote:
Well I found out the hard way. Got 4 cards in a spree in 2013 of which 2 with horrible terms ..Freedom with 22,99% APR and Discover with 2,5K limit ....(even with scores in the high 700) for me lesson learnt - no more sprees as I do not only want approvals but also best terms and decent limits. That happens only if I space out my apps. I am now on a 1 card every 6 months and got nice limits and best terms ever since

This is exactly part of my point. I think some are doing these "sprees" just because others are having some success with it on the site and get sucked in.

Re: Why go on an App Spree?

Open123 — Sat, 22 Mar 2014 14:11:02 GMT

@fungoman wrote:
That is quite a bit of spending to have to put through some of these cards in a short period. The average income from what I have gathered on most people posting around here can't support that type of spending. Doesnt adding all these cards at the same time crush your AAoA?

For most who are enterprising, the spend isn't an issue.

Those with thick files and old Amex membership dates will experience little to no adverse effects on AAOA. Those with new or thin files will only be helped in time as all 4 beging to age, as opposed to reducing the average AAOA with a new app every 6 months.

However, for those with medium files, spend little money and aren't "creative," then this strategy isn't feasible.

Re: Why go on an App Spree?

Open123 — Sat, 22 Mar 2014 14:12:40 GMT

@lg8302ch wrote:
Well I found out the hard way. Got 4 cards in a spree in 2013 of which 2 with horrible terms ..Freedom with 22,99% APR and Discover with 2,5K limit ....(even with scores in the high 700) for me lesson learnt - no more sprees as I do not only want approvals but also best terms and decent limits. That happens only if I space out my apps. I am now on a 1 card every 6 months and got nice limits and best terms ever since

Well, for pure sign-up bonus cards, I couldn't care less about the CL (so long as it can meet the spend requirement) or APR. It'll be purged before the next fee is due anyway.

Re: Why go on an App Spree?

fungoman — Sat, 22 Mar 2014 14:17:26 GMT

That makes sense, I guess I am thinking most that I have seen on here are younger with limited files.

Re: Why go on an App Spree?

lg8302ch — Sat, 22 Mar 2014 14:18:43 GMT

@fungoman wrote:
@lg8302ch wrote:
Well I found out the hard way. Got 4 cards in a spree in 2013 of which 2 with horrible terms ..Freedom with 22,99% APR and Discover with 2,5K limit ....(even with scores in the high 700) for me lesson learnt - no more sprees as I do not only want approvals but also best terms and decent limits. That happens only if I space out my apps. I am now on a 1 card every 6 months and got nice limits and best terms ever since
This is exactly part of my point. I think some are doing these "sprees" just because others are having some success with it on the site and get sucked in.

I matters a lot if you have a strong file and long AAoA. When I did this I had only 2 cards and AAoA 18 yrs which I cut to 4 yrs ...scores recovered within 3 months but risk score for Chase was horrible that is why the horrible APR. Worst of all that Chase does not re-evaluate terms and you are stuck for life unless you close the card and reapply. Once my inq drop off and my Freedom hits 2 years I am going to challenge Chase to lower it...goal is 13,99%...not important as I PIF but I would like them to adjust the APR as every other prime lender does. Goal is best terms on all cards..LOL

Re: Why go on an App Spree?

Open123 — Sat, 22 Mar 2014 14:23:36 GMT

@lg8302ch wrote:
I matters a lot if you have a strong file and long AAoA. When I did this I had only 2 cards and AAoA 18 yrs which I cut to 4 yrs ...scores recovered within 3 months but risk score for Chase was horrible that is why the horrible APR. Worst of all that Chase does not re-evaluate terms and you are stuck for life unless you close the card and reapply. Once my inq drop off and my Freedom hits 2 years I am going to challenge Chase to lower it...goal is 13,99%...not important as I PIF but I would like them to adjust the APR as every other prime lender does. Goal is best terms on all cards..LOL

Right, hence the vivid example of the value of having multiple TLs from the beginning. For long term stability, it's better to start off with 6 immediately, then to start with 2, then add 4 many years later.

Or, for those with old Amex memberships, this AAOA erosion is almost completely neutralized by new Amex apps. 4 Amex Revolvers & a Charge can give a person 5 fully backdated TLs.

Re: Why go on an App Spree?

lg8302ch — Sat, 22 Mar 2014 14:28:02 GMT

@Open123 wrote:
@lg8302ch wrote:
Well I found out the hard way. Got 4 cards in a spree in 2013 of which 2 with horrible terms ..Freedom with 22,99% APR and Discover with 2,5K limit ....(even with scores in the high 700) for me lesson learnt - no more sprees as I do not only want approvals but also best terms and decent limits. That happens only if I space out my apps. I am now on a 1 card every 6 months and got nice limits and best terms ever since
Well, for pure sign-up bonus cards, I couldn't care less about the CL (so long as it can meet the spend requirement) or APR. It'll be purged before the next fee is due anyway.

for that purpose I fully agree but I am not at that stage yet...all my cards are keepers. I do not have a single closed account on my report which also looks suspicious on manual reviews...ha ha. Well at the end of the year I will app for CSP and if Chase will have 149$ my plan is to pc to a Freedom (possibly better terms) after 1 year and previously close the present Freedom if Chase will not budge to upgrade to a Siggy and lower APR. For 95$ the CSP would be a keeper as well but for me personal spend only with my income it does not make sense for the 149$ AF...we will see as times goes by...

Re: Why go on an App Spree?

Open123 — Sat, 22 Mar 2014 14:31:29 GMT

@lg8302ch wrote:
+1
for that purpose I fully agree but I am not at that stage yet...all my cards are keepers. I do not have a single closed account on my report which also looks suspicious on manual reviews...ha ha. Well at the end of the year I will app for CSP and if Chase will have 149$ my plan is to pc to a Freedom (possibly better terms) after 1 year and previously close the present Freedom if Chase will not budge to upgrade to a Siggy and lower APR. For 95$ the CSP would be a keeper as well but for me personal spend only with my income it does not make sense for the 149$ AF...we will see as times goes by...

LOL...see, it's all about pattern of behavior.

I've got so many closed accounts, on manual review they don't even bother asking me about it. The one who did (US Bank), I just said, "the closed cards rewards sucked, which is why I'm applying for your card!"

Re: Why go on an App Spree?

lg8302ch — Sat, 22 Mar 2014 14:35:05 GMT

@Open123 wrote:
@lg8302ch wrote:
I matters a lot if you have a strong file and long AAoA. When I did this I had only 2 cards and AAoA 18 yrs which I cut to 4 yrs ...scores recovered within 3 months but risk score for Chase was horrible that is why the horrible APR. Worst of all that Chase does not re-evaluate terms and you are stuck for life unless you close the card and reapply. Once my inq drop off and my Freedom hits 2 years I am going to challenge Chase to lower it...goal is 13,99%...not important as I PIF but I would like them to adjust the APR as every other prime lender does. Goal is best terms on all cards..LOL
Right, hence the vivid example of the value of having multiple TLs from the beginning. For long term stability, it's better to start off with 6 immediately, then to start with 2, then add 4 many years later.

Or, for those with old Amex memberships, this AAOA erosion is almost completely neutralized by new Amex apps. 4 Amex Revolvers & a Charge can give a person 5 fully backdated TLs.

+1.....took me 20 yrs to find this board..wish my oldest account would be Amex and like this I could just add another Amex and boost AAoA...next Amex for me in 2015 like this it will get me at least the 3 yrs

Re: Why go on an App Spree?

SomeGuyOnTheWeb — Sat, 22 Mar 2014 15:26:00 GMT

I was kind of wondering the same thing myself. I've never understood the purpose of having six, seven or eight credit cards. I only have two, and I'll probably get a third (Capital One QS) in the future for the 1.5% cashback once the 0% APR offer on my Discover It ends. I couldn't imagine any more than that. What's the point?

Re: Why go on an App Spree?

-Wade- — Sat, 22 Mar 2014 15:32:20 GMT

My app spree was 1 card a few weeks ago and now I am finish

Re: Why go on an App Spree?

Open123 — Sat, 22 Mar 2014 15:32:46 GMT

@SomeGuyOnTheWeb wrote:
I was kind of wondering the same thing myself. I've never understood the purpose of having six, seven or eight credit cards. I only have two, and I'll probably get a third (Capital One QS) in the future for the 1.5% cashback once the 0% APR offer on my Discover It ends. I couldn't imagine any more than that. What's the point?

The only point would be to accrue free perks, such as cashback bonuses and assorted travel related rewards for air travel and hotel stays.

Re: Why go on an App Spree?

lg8302ch — Sat, 22 Mar 2014 15:40:24 GMT

@Wade64 wrote:
My app spree was 1 card a few weeks ago and now I am finish

Yeh...for me another year and I am done too and going for Diamond as well ...looking forward to your Diamond ...stay on track ..LOL

Re: Why go on an App Spree?

thmgoodw — Sat, 22 Mar 2014 17:40:15 GMT

What's the point? As someone who went from 2 cards to 11 cards in the course of about 6 months...

(1) My AAoA is bolstered by several older closed accounts, that should be dropping off my report in a few years. I would rather take a hit on my credit score now, and get a host of new tradelines, that can then age with me, then take the hit in a few years.

(2) The perks, rebates and discounts. I use my Cap1 QuickSilver's 1.5% cashback as my standard use card. I use my Sallie Mae card and US Bank Cash+ cards for their respective categories. I used Care Credit to basically fund 18 months interest free LASIK. For some stores, it is rather silly to shop there and not use their store card. I love Kohl's, and one would have to be cuckoo to shop there and not use their card. Same with Macy's. I also have a few GECRB cards so that I can do regular CLIs to get up to great credit limits on those accounts, hopefully to help influence future higher limits on new cards.

Re: Why go on an App Spree?

SomeGuyOnTheWeb — Sat, 22 Mar 2014 18:46:16 GMT

@Open123 wrote:
@SomeGuyOnTheWeb wrote:
I was kind of wondering the same thing myself. I've never understood the purpose of having six, seven or eight credit cards. I only have two, and I'll probably get a third (Capital One QS) in the future for the 1.5% cashback once the 0% APR offer on my Discover It ends. I couldn't imagine any more than that. What's the point?
The only point would be to accrue free perks, such as cashback bonuses and assorted travel related rewards for air travel and hotel stays.

I don't really see the point of signing up for a card solely for the perks, especially if you're not going to use it afterwards. As far as I see it, more credit cards = more bills to keep track of + more debts to pay off. To each their own, I suppose.

Re: Why go on an App Spree?

Open123 — Sat, 22 Mar 2014 21:03:50 GMT

@SomeGuyOnTheWeb wrote:
@Open123 wrote:
@SomeGuyOnTheWeb wrote:
I was kind of wondering the same thing myself. I've never understood the purpose of having six, seven or eight credit cards. I only have two, and I'll probably get a third (Capital One QS) in the future for the 1.5% cashback once the 0% APR offer on my Discover It ends. I couldn't imagine any more than that. What's the point?
The only point would be to accrue free perks, such as cashback bonuses and assorted travel related rewards for air travel and hotel stays.
I don't really see the point of signing up for a card solely for the perks, especially if you're not going to use it afterwards. As far as I see it, more credit cards = more bills to keep track of + more debts to pay off. To each their own, I suppose.

So, if a Bank offered you $500 to apply for a card, you wouldnt?