App Spree? Consider this

[navigatethis12]

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@k0csi wrote:

Another question, I realize this could be a thread of it's own, but everyone also preaches PIF but what about w/ promotional financing such as through Best Buy?  If I buy a TV and get 36M no interest, isn't it worth it to take advantage of the financing?  Likewise, on my Ford Card, and service over $199 is 6-mo no interest.  Just seems stupid to PIF absolutely all the time if you aren't losing anything to interest anyways?  Provided you make the appropriate payments responsibly.

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I don't believe anyone has a problem with that kind of financing. Although, the people who don't read and complain when they get a statmenet with hundreds of dollars in interest need to learn to take responsibility. If you have some type of investment or savings that yields you a few percentage points in interest it's good to float money, otherwise, is there really any point? Sure it's good to see a high balance in a bank account, but I'd rather the money be earning something.

[fishbjc]

I simply avoid the Christmas Shopping Trap...and am better for it! 

When I needed a new mattress I went to QVC and did the flex pay for 6 months, same as my bedroom TV and my Bose.  Trying to keep all debts down.  This way I KNOW I have those monthly deductions out of checking.  It just works for me, but may not for everyone else!

If anyone out in fico land would like to send me homemade fudge...please feel free to pm me, lol!

[myjourney]

[FinStar]

A great post to bump for all those folks considering any app sprees...

[myjourney]

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@FinStar wrote:

A great post to bump for all those folks considering any app sprees...

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Every now and again I bump this post for good reading tonights a good night I think 

[zyzzus]

Thanks journey I needed a reminder to go on a spree.
:-)

[myjourney]

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@zyzzus wrote:
Thanks journey I needed a reminder to go on a spree.
:-)

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Lol

[myjourney]

[09Lexie]

Per myjourney's request

Holidays are fast approaching.  Don't have app remorse 

eta: relevant info

[Revelate]

Guys, bumping threads is bad form.

If you want to re-establish a useful discussion that's one thing, though nobody posted the counterpoint as to why sprees *can* be beneficial other than if you dig several pages into the "always entertaining thread" posted several pages back on this one.

Napkin math: 3 cards, opened six months after each other.  At the 366th day mark.

1 card: 1 year AAoA

1 card: 0.5 years AAoA

1 card: 0 years AAoA

2 scorable inquiries, one dropping off in 6 months, the other dropping off in a year.

18 payments reported

Second, spree scenario: 3 cards at once.  Likewise at the 366th day mark.

3 cards, 1 year AAoA each

0 scoreable inquiries.

36 payments reported

The reason to do sprees, and I don't recommend random junk tradeline sprees (store cards.......) is simply for the statistical advantage they have for your future FICO score.  Because almost everything is time dependent in the algorithm, it behooves anyone to take negatives (inquiries, new tradelines) as soon as possible and start the penalties fading into the past immediately.

For thin files and ones just transitioning out of the initial building phase, establish several tradelines and go on with life.  For the vast majority of people who find this forum who fall into the categories of thin, no, mixed, and negative files, one of the mistakes which can be made is simply not establishing enough tradelines both to accrue payment history, but also to satisfy the FICO mix of credit function.  A low credit score is an anvil attached to one's ankle in modern society, don't drag out the pain and sometimes suffering any longer than it needs to be.

That all said, the most important three things to remember for anyone when managing credit:

1) Have a plan

2) Have a plan

3) Have a plan

No plan, sprees are a waste of time and resources, and I'd argue any application at all falls into that category (well, you could admittedly get lucky but why leave such things to chance?) Planned and executed appropriately, app sprees have a similar place in the path of building credit that gardening does: use when appropriate, don't when not appropriate.