Risks with multi cards same creditor?

[Anonymous]

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@Fico2Go wrote:
Walt..I was referring to the latter.

Just a thought but would be a huge back door if possible. If any of our forum friends knows how to make this possible plz kindly suggest how.

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a) Kidnap a senior executive of the issuer (or a close relation of one) and as part of the ransom demand, require they give you a new card.    This might make it rather easy for the police to identify you though.

b) Marry senior executive or close relative, and get it as a wedding present.

c) Send longtermlurker $500 and you may be told the supersecret (YMMV).

[Walt_K]

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@Fico2Go wrote:
Walt..I was referring to the latter.

Just a thought but would be a huge back door if possible. If any of our forum friends knows how to make this possible plz kindly suggest how.

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In general, to open a new credit product, you have to apply.  There are certain limited situations where you can get a new credit product without another hard inquiry.  Some CUs will open a checking account, LOC, and/or credit card at the time of opening the account with a single inquiry.  Some lenders, e.g., Amex will allow you to apply for multiple accounts on the same day and receive a single inquiry.

You can ask to do a product change to convert a card to another type of card with the same lender without receiving an inquiry.  You will not receive a sign up bonus if you do this.

For existing customers, Amex will generally not pull a hard inquiry for an application unless you are approved.  So that, at least, gives you some solace if it is a denial.  The denial is based on a soft pull.  There are circumstances where this is not the case.  For example, if it is a borderline application, they sometimes need to pull from multiple CRAs.  In that case, you're going to see the hard pulls if you are then denied.

So those aren't exactly what you are talking about.  But that's the closest I can think of off the top of my head to what you are asking.  In general, if you want an additional credit product, you have to apply.

[red259]

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@Anonymous wrote:

Yes, I think you need to distinguish between two cases:

1) Having multiple cards from one issuer

2) Having all (or nearly all) of your cards from one issuer.

1) makes perfect sense, different cards may have different reward categories etc.  There is a risk that multiple cards can suffer AA, but you will be left with others (at least for a while!)   People with lots of cards tend to fall into this category anyway.

I don't recommend 2.  You need issuer and network diversity.

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+1 Diversity in lenders seems like a great idea. Besides maybe you can get lucky and they will start competing with each other and raising your credit lines. 

[Rackham94]

Haha!! longtimelurker!!

[Fico2Go]

LtLurker abd All,

Great consolidation of ideas. The randsom and kidnapping part is taking it too personal.

[SunriseEarth]

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@Fico2Go wrote:

I have been noticing that some board members have 4-8 products from the same lender or creditor.  Pardon my ignorance on this topic, but it just seems a bit risky to have all the eggs in one basket. What if one day that creditor decides to do AR or FR and cancels most or all of the accounts.  What is the possibility that such an event can take place?  

I understand the value in creating a strong relationship with a prime lender but are there other reasons besides that are useful to us as account holders?

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What comes to mind is when GERCB started taking AA on several members with high GE Credit exposure.  Although some had very diversified credit, it caused others some huge set backs. 

(edited for clarity)

[Fico2Go]

Sunrise, members with high exposure? Do u mean myfico board members? How would they know?

[Anonymous]

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@Fico2Go wrote:
Sunrise, members with high exposure? Do u mean myfico board members? How would they know?

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I think sunrise is talking about myfico people with lots of credit with GE, not people who post a lot on this board, if that is what you meant.

[SunriseEarth]

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@Anonymous wrote:

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@Fico2Go wrote:
Sunrise, members with high exposure? Do u mean myfico board members? How would they know?

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I think sunrise is talking about myfico people with lots of credit with GE, not people who post a lot on this board, if that is what you meant.

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LOL.  Yes, members with a ton of GE Credit.   Not high-profile people of the MyFICO boards.

[Fico2Go]

Goodness. I was already starting to cut down on # of posts per day. lol