topic Re: Why CC and CLI sprees? in General Credit Topics

Why CC and CLI sprees?

Anonymous — Tue, 26 Feb 2019 11:57:28 GMT

I've read from several forum members their experiences and results from CC application and/or CLI sprees. I'm confused! Why do this? From what I've read, the inquiries affect their FICO scores and your stuck with all these inquiries on your report for 2 years! I'm not criticizing those that do this, I'm just curious as to why and what benefits were they seeking. Thanks!

Re: Why CC and CLI sprees?

Anonymous — Tue, 26 Feb 2019 12:36:31 GMT

When you go on a spree, you have inquiries but not the new accounts reporting. It’s basically a way to squeak a bunch of approvals that wouldn’t otherwise happen and also take all of the damage at once.

Plus sometimes you get that adrenaline rush from an approval and just can’t stop at one. I suspect a lot of us have the latter rather than an actual plan of attack for sprees (except for sensitive lenders like Chase and Barclays).

Re: Why CC and CLI sprees?

Gmood1 — Tue, 26 Feb 2019 12:38:51 GMT

It's not necessarily the inqs, the reason why folks spree. It's the reporting of the new accounts.
The new accounts will ding your scores more than the inqs will. Hence grabbing several before any of them report to the CBs.
Also those accounts will all age at the same rate as well as the inqs falling off at the same time.
Basically taking the credit ding all at once verses spreading them over a longer period time.

Not advisable for those with a weak profile, that contains multiple baddies.

Definitely a personal choice. Not everyone can spree and come out smelling like roses on the other side.

Re: Why CC and CLI sprees?

Anonymous — Tue, 26 Feb 2019 12:43:12 GMT

ah okay, that makes sense from that point of view. For sure not a thing that everyone could or want to do.

Re: Why CC and CLI sprees?

Anonymous — Tue, 26 Feb 2019 13:30:05 GMT

@Anonymous wrote:
From what I've read, the inquiries affect their FICO scores and your stuck with all these inquiries on your report for 2 years!

Two points regarding inquiries. One, while they're present for 2 years on your CR, they only adversely impact score for 1 year. Second, inquiries are one of the least score-impacting criteria of the FICO pie. A big deal is often made about them when in fact in the grand scheme of things they don't matter all too much.

Re: Why CC and CLI sprees?

pinkandgrey — Tue, 26 Feb 2019 14:25:15 GMT

@Anonymous wrote:
When you go on a spree, you have inquiries but not the new accounts reporting. It’s basically a way to squeak a bunch of approvals that wouldn’t otherwise happen and also take all of the damage at once.

Plus sometimes you get that adrenaline rush from an approval and just can’t stop at one. I suspect a lot of us have the latter rather than an actual plan of attack for sprees (except for sensitive lenders like Chase and Barclays).

Couldn’t have said it better. Once you get one approval, the frenzy starts lol. You have to step back and get some distance from apping in order for the desire to abate.

Re: Why CC and CLI sprees?

FlaDude — Tue, 26 Feb 2019 16:16:35 GMT

@Anonymous wrote:
ah okay, that makes sense from that point of view. For sure not a thing that everyone could or want to do.

And if you are into signup bonuses, spreading them out to meet the spend requirements might preclude spreeing.

Re: Why CC and CLI sprees?

Rogue46 — Tue, 26 Feb 2019 20:17:46 GMT

Also take into account if you have a thick and long file the inquiries do very little damage compared to someone with a thinner file.

Re: Why CC and CLI sprees?

LakeLife — Tue, 26 Feb 2019 21:37:27 GMT

Of course, a HP for CLI is not always performed. I just requested a CLI on two cards that I'm running BT balances on just to lower my utilization, and they came through without a HP. For me personally, I wouldn't request a CLI if a HP was required. Both Discover and Citi were good about letting me know what would nessesitate a HP before I clicked to submit the CLI.

Re: Why CC and CLI sprees?

Anonymous — Tue, 26 Feb 2019 21:48:51 GMT

@Rogue46 wrote:
Also take into account if you have a thick and long file the inquiries do very little damage compared to someone with a thinner file.

While signal strength of inquiries may be a factor here on a thick vs thin file based on scorecard, the real difference would be the age of accounts factors (specifically AAoA) being reduced far less from the addition of a new account or accounts on a thick file verses a thin one.

Re: Why CC and CLI sprees?

Anonymous — Wed, 27 Feb 2019 01:37:20 GMT

@FlaDude wrote:
@Anonymous wrote:
ah okay, that makes sense from that point of view. For sure not a thing that everyone could or want to do.
And if you are into signup bonuses, spreading them out to meet the spend requirements might preclude spreeing.

Quite right. And furthermore, it's common that, if you are interested in cards X, Y, and Z, at a given point in time cards Y and Z are not offering the best signup bonuses, but they might if you waited a while longer. Thus during any particular month, there is often at best only one card you like that is offering a historically high bonus and hence it makes sense it only apply for one right then.

Remember if you apply for one card every six months (on average) that's still ten cards in five years, which is a lot.

Re: Why CC and CLI sprees?

HeavenOhio — Wed, 27 Feb 2019 22:35:21 GMT

Over in the Credit Cards forum, sprees are rarely recommended. When we do give the collective OK, it's generally after a substantial period of gardening, with another period of gardening after the applications.

It seems that inquiries are coming into the equation more and more. A member recently had about five Comenity cards CLD'ed from 4-digits to the $200 range. Her history was to use the cards almost every month and to always pay in full.

The reason given for the CLDs was five inquiries in the past thirty days. And get this. The inquiries were all for an auto loan. Of course, everyone gave her the requisite "interrogation." Utilization was great, and there were no baddies. Her non-Comenity cards had 5-digit limits. The inquiries were the only thing "wrong" with her report.

Re: Why CC and CLI sprees?

MakingProgress — Wed, 27 Feb 2019 23:23:15 GMT

Both last year and this year I did what I like to think of as a targeted minispree.

Discover, Amex BCE, Chase Amazon, and Citi DC all app/approved on 2/10/18

U S Bank Cash+, Barclay's Uber Visa, FNBO Ducks Unlimited all app/approved on 2/11/19

If you are going to do it pick the cards you want and research them in case some are especially inquirey or new accoun sensitive then app and stop after you have apped for those cards. Don't just app and app and app for cards you don't want or need.

Re: Why CC and CLI sprees?

Anonymous — Thu, 28 Feb 2019 01:29:50 GMT

@HeavenOhio wrote:

The reason given for the CLDs was five inquiries in the past thirty days. And get this. The inquiries were all for an auto loan. Of course, everyone gave her the requisite "interrogation." Utilization was great, and there were no baddies. Her non-Comenity cards had 5-digit limits. The inquiries were the only thing "wrong" with her report.

Did she attempt to recon the CLDs? No doubt it was a computer program that flagged the inquiries as troublesome, as any human being would know that auto inquiries lumped together even if it's 10-20 of them are only going to end in 1 request for credit.

This would essentially mean that anyone that goes for an auto loan would then cause CLDs on their Comenity cards. I wouldn't see that flying for very long.

Re: Why CC and CLI sprees?

Anonymous — Thu, 28 Feb 2019 01:30:59 GMT

@MakingProgress wrote:
Both last year and this year I did what I like to think of as a targeted minispree.

Discover, Amex BCE, Chase Amazon, and Citi DC all app/approved on 2/10/18

U S Bank Cash+, Barclay's Uber Visa, FNBO Ducks Unlimited all app/approved on 2/11/19

Have you added any accounts since that spree last year around this time? If not, your AoYA would have hit 12 months back on 2/1/19 and I'm just curious if you saw a nice gain to your FICO scores?

Re: Why CC and CLI sprees?

Gmood1 — Thu, 28 Feb 2019 01:44:45 GMT

What Ohioheaven failed to mention, was that person apped for 3 cards all from Comenity at once. That's why they were all closed. The inqs alone had little to do with it.
If those were from 3 different lenders. Chances are the poster would likely still have all three accounts.

Re: Why CC and CLI sprees?

HeavenOhio — Thu, 28 Feb 2019 03:02:29 GMT

@Gmood1, I think we're thinking of different threads. This is the one I was referring to:

Strange Comenity Bank CLD!!!

Re: Why CC and CLI sprees?

MakingProgress — Thu, 28 Feb 2019 13:17:55 GMT

@Anonymous wrote:
@MakingProgress wrote:
Both last year and this year I did what I like to think of as a targeted minispree.

Discover, Amex BCE, Chase Amazon, and Citi DC all app/approved on 2/10/18

U S Bank Cash+, Barclay's Uber Visa, FNBO Ducks Unlimited all app/approved on 2/11/19

Have you added any accounts since that spree last year around this time? If not, your AoYA would have hit 12 months back on 2/1/19 and I'm just curious if you saw a nice gain to your FICO scores?

Just a few days before 2/19 I had a Parent Plus Student Loan hit my reports. I am really confused by that account. It is a new loan in deferment showing it was opened in Jan 2019 and it's current staus is closed. I only gained a 1 - 4 gain on each of the Fico 8s, but I hadn't seen any movement in my scores for several months prior.

Re: Why CC and CLI sprees?

Anonymous — Thu, 28 Feb 2019 15:35:25 GMT

Hello MakingP! You have an interesting problem (specifically that you have an open loan reporting as closed). I encourage you to open a discussion on another thread (if you have not done so) to get help with that.