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Am I addicted to apps and credit? Need to close up shop.

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Super Contributor

Re: Am I addicted to apps and credit? Need to close up shop.

21+7 is definitely a lot without 6 figure spend or serious bonus chasing (of the $500+ or 50k+ miles per card type).

 

I'm a fan of gradually adding and closing cards. You could pick one or two cards a week for closure.

 

Another idea is to lay them out on a table or desk and either rank them by putting them in a "best to worst" line, or in love/like/borderline/close piles, rows, etc.

 

If you list your cards I could tell you which I'd suggest keeping or dropping. Of course, my needs will be a bit different.

 

Finding an unrelated hobby can also be good. Some say "stay out of the Approvals section" but I don't know if that works for a lot of people, as content and signatures tend to spill over.

Spend: BofA PR + WWFCR, BBP, Schwab Platinum, CFF+CF, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
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Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 11 of 40
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Super Contributor

Re: Am I addicted to apps and credit? Need to close up shop.

I am of the belief that if you ask the question, the answer is likely yes. 

 

Some questions people ask that are almost always yes answers:

 

Should I close some cards?

Do I have too many cards?

Am I addicted to credit?

Is it too soon to apply for ____?

 

I think many of us MF’ers are perfect candidates for a creditholics anonymous support group. I spend a huge amount of time on this forum and I spend a lot of time dealing with my own personal credit. I can’t tell you how many times I have shuffled my budget around for the next few months because some unexpected dental expenses are going to force me to have to carry balances. I have applied for four cards in the last two weeks and only been approved for one. I know I have a problem, I’m just not interested in doing anything about it. 

 

I definitely agree that the store cards are the first thing that you should be considering either SDing or closing. As for the rest... I would probably try to cut a card or two every few months (don’t want to spook lenders by suddenly closing a ton of cards) and maybe head to the garden thread here to be around others who are trying not to actively seek credit. 




Message 12 of 40
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Established Contributor

Re: Am I addicted to apps and credit? Need to close up shop.

Maybe instead of going after new cards, go after cli’s on current cards.

Message 13 of 40
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Established Contributor

Re: Am I addicted to apps and credit? Need to close up shop.

@djsambroak @Aim_High <—This person knows what’s up. I’d take their advice.
AU



Message 14 of 40
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Valued Contributor

Re: Am I addicted to apps and credit? Need to close up shop.


@kdm31091 wrote:

Just step back, take a break, evaluate your cards and profile, and see where you can cut to make things more manageable. And obviously, stop applying. If that means freezing your credit do it. Adding more accounts is just exacerbating the issue. When you are forcing spend on cards because they're going unusued for months, to me those are prime candidates for closure.

 

@ wrote:

Credit is a choice. You decide to ask for credit, or you decide not to ask for credit. You have the control of your choices.

 

One of the first exercises to do is to list out all the cards you do have, with their limits. Include notes about why you have each card. I routinely think through how a card is benefiting me, or whether a card is no longer benefiting me.  ... Then, after you go through the thinking sequence, close one card. Just one, that you have decided does not belong in your life anymore.

 
 
 
 
 
 

I agree with both of the above pieces of advice for the person who knows they are "getting a little out of control" and still has the ability to rationally and logically approach their credit usage.  Most people are able to do this and take these steps by themselves once they see the need. 
 
However, if someone were to be truly Obsessive Compulsive about their credit, they are literally no longer able to do these things without outside help. OCD behaviors are much more common than people realize and people trapped in those thought processes, which is a form of mental illness, cannot bring themselves to make these changes even though they may recognize that their behavior is not normal or productive in their lives. 
 
 

 

 

 



Updated 10/08/2020
Total Length of Credit = 35+ years; AoOA (Currently open accounts) = 27+ years;
AAoA = 8+ years; AoYA = less than 1 year (Aug 2020)
Total Open Credit Lines Over $538K. Utilization Less Than 1%.
Inquiries until Nov 2020 (TU:3 -- EQ:4 -- EX:9)
New Accounts: 3/6 months; 8/12 months; 12/24 months (as of 10/15/20)
*Hover cursor over each card to see name & CL, or press & hold on mobile app.
Message 15 of 40
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Epic Contributor

Re: Am I addicted to apps and credit? Need to close up shop.


@Saeren wrote:
"I think many of us MF’ers are perfect candidates for a creditholics anonymous support group."

Ok, Where do I sign Up?https://i.imgur.com/pQdnsnL.png

Message 16 of 40
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Community Leader
Senior Contributor

Re: Am I addicted to apps and credit? Need to close up shop.

@M_Smart007, with that stack you don’t ask where to sign up, you tell US where to sign up Smiley Happy


Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | 2017 Audi A6 Prestige S-Line





TCL $85,100| Agg. Util under 5%
Message 17 of 40
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Super Contributor

Re: Am I addicted to apps and credit? Need to close up shop.


@Saeren wrote:

As for the rest... I would probably try to cut a card or two every few months (don’t want to spook lenders by suddenly closing a ton of cards)


I see this advice a lot around here, but I'm not sure why. Is there really any evidence that closing accounts causing issuers to be spooked or cause AA? You're reducing your exposure and your credit risk overall, so I just can't see how lenders would be spooked by it, unless I'm missing something.

 

Smaller steps are probably better than a ton of rapid closures anyway, though. Just not sure how much difference it really makes if your profile remains in good shape in the end (low utilization, accounts paid on time, etc). I think with a lot of addictive behavior you have to completely remove the source. SDing the card won't always work. Sometimes you have to actually close the account to get it out of your mind.

 


@Saeren wrote:

I have applied for four cards in the last two weeks and only been approved for one. I know I have a problem, I’m just not interested in doing anything about it. 


You already know it's an issue, but four apps in two weeks is a lot especially when you're just racking up HPs for denials. Have you considered a credit freeze or taking up an unrelated hobby?

Message 18 of 40
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Established Contributor

Re: Am I addicted to apps and credit? Need to close up shop.


@kdm31091 wrote:

I see this advice a lot around here, but I'm not sure why. Is there really any evidence that closing accounts causing issuers to be spooked or cause AA? You're reducing your exposure and your credit risk overall, so I just can't see how lenders would be spooked by it, unless I'm missing something.


Closing several accounts in a short period could appear to signify financial duress to a lender.

 

If there are no annual fees, there's no need to be hasty in closing them.  Sock drawer them, and close 1 every month or so.  Make a list and prioritize the accounts from most to least useful, and drop the bottom one every so often.

 

Also, feel free to join us in the garden.  Freezing your reports can help make it harder to app addictively.  Tweak your hobby and look to grow and age your existing accounts (and your scores) instead of apping.

 

 

 

I pretend to work, they pretend to pay me. I have pretend credit cards with pretend limits, so I can pretend to buy pretend things and pretend to pay the bills.

Message 19 of 40
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Super Contributor

Re: Am I addicted to apps and credit? Need to close up shop.

@kdm31091 wrote:

@Saeren wrote:

As for the rest... I would probably try to cut a card or two every few months (don’t want to spook lenders by suddenly closing a ton of cards)


I see this advice a lot around here, but I'm not sure why. Is there really any evidence that closing accounts causing issuers to be spooked or cause AA? You're reducing your exposure and your credit risk overall, so I just can't see how lenders would be spooked by it, unless I'm missing something.

 

Smaller steps are probably better than a ton of rapid closures anyway, though. Just not sure how much difference it really makes if your profile remains in good shape in the end (low utilization, accounts paid on time, etc). I think with a lot of addictive behavior you have to completely remove the source. SDing the card won't always work. Sometimes you have to actually close the account to get it out of your mind.

 


@Saeren wrote:

I have applied for four cards in the last two weeks and only been approved for one. I know I have a problem, I’m just not interested in doing anything about it. 


You already know it's an issue, but four apps in two weeks is a lot especially when you're just racking up HPs for denials. Have you considered a credit freeze or taking up an unrelated hobby?


We know these credit algorithms are sensitive to a lot of things and dramatic changes can spark AA. It’s just better to be safe than sorry. It would be awful to perform some closures to clean out your wallet and end up losing a card you never would have closed. Also while it looks better to us, we aren’t the bank. Someone closing a lot of cards could signal that they’re not going to be spending or they are having financial difficulties and trying to prevent themselves from racking up more charges than they could pay.

As for my apps, two of those ended up being no HP - one of them was SP and denied because I wasn’t willing to submit intrusive amounts of documentation, one of them was instantly denied without an HP because I mistimed the application (it needed to be 6 months since my last one) and the other one was only denied because my SSL is at 100% and can likely be reconned if I am willing to take another HP in a few days once that balance updates. I only apply for credit when I have spend that can hit the sign up bonus and I have a lot of dental work coming up which would have been perfect. Two HPs with one hit and one miss is acceptable to me. I wouldn’t have continued to app if those were HPs and I have no plans to continue throwing apps out. 




Message 20 of 40
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