Credit seeking behavior?

[goal_digger]

Reading here on the boards I repeatedly see reference to applications being denied or accounts being closed due to credit seeking behavior and I’m wondering how this is defined from one issuer to the next.

Does the same definition apply across the board (meaning all issuers use the same criteria)? Does CSB only matter when you have a thin or relatively new profile? What is considered too aggressive as it relates to credit seeking? Which issuers are most likely to decline an app or take AA due to CSB?

Personally I’ve never been big on app sprees (though I enjoy reading outcomes!) but for the first time I’m preparing to apply for multiple cards at once (for timing and aging purposes) and a recent Chase thread where the OPs new account was closed got me questioning whether there’s a general rule people should consider before applying for multiple cards. Are there trends that can be captured in one place?

Thoughts? Feedback?

[Brian_Earl_Spilner]

Applying for a lot of credit in a short period of time is credit seeking behavior. All banks have policies in regards to it. About 4 month's ago, cap1 cut me off for applications and CLI for too many recent applications. That restriction was just lifted about a week ago. For data points, I have 19 years of credit history and nearly 40 accounts reporting.

[goal_digger]

Thanks for the input, @Brian_Earl_Spilner. How many recent applications/inquiries did you have?

[Anonymous]

A spree of a handful of accounts (say, 3-5) isn't going to cause any red flags on a sound profile.  Also keep in mind that with a spree the new accounts aren't actually seen, only the inquiries.  With inquiries being spread across the bureaus, seeing a couple of new inquiries IMO isn't going to turn off a potential lender.

[AndySoCal]

Any hard inquiry is considered the persuit of new credit (Credit Seeking). A credit line increase or new credit card account is the persuit of new credit.   Keep in mind the way a lender thinks that a consumer is only going to apply for the credit they need.  When lender sees multiple inquiries and new open accounts in a short period of time the question becomes is why does this consumer need all that credit? At some point in time this becomes a red flag. My definition of an app spree for me is one card because I researched the cards that meet my criteria and picked the best one in my opinion. I have 6 credit cards total and I could have more but have no use for any more.

[Anonymous]

It's all relative to the profile that you're seeking credit on.  Someone with a 720 score that applies for 3 products isn't going to be viewed the same way as someone with a 620 score.  That being said, there's no blanket statement answer to this question/topic. 

Like I said in my previous post, against a solid profile a small spree isn't going to draw any red flags or cause anything adverse to happen.  On a weaker profile, one may want to think twice before pulling the trigger on such a spree.

[goal_digger]

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@Anonymous wrote:

A spree of a handful of accounts (say, 3-5) isn't going to cause any red flags on a sound profile.  Also keep in mind that with a spree the new accounts aren't actually seen, only the inquiries.  With inquiries being spread across the bureaus, seeing a couple of new inquiries IMO isn't going to turn off a potential lender.

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Thanks. I was thinking this would be the case but wanted to verify. I've actually reduced the number of cards I plan to app so will likely only be in the 2 or 3 (max) range. Before I was aiming for 3 or 4. Either way, I looked at previous pulls for all card accounts since I have relationships with all but one. Citi is my only wildcard on who they'll pull but we shall soon see!