Originally Posted by
Amberite
ie, after doing some more digging, I read that your credit score will go down 2-5 points for every hard credit inquiry. Also, I am reading that you should apply to 4-5 cards every 90 days. Does this mean that if I follow this schedule, I will lose a minimum of 40 points off my FICO each year, notwithstanding the gain from having more credit?
Inquiries only stay on your report for 2 years. They also have a diminishing impact to your score as time passes toward 2 years. It's not a simple linear scale.
You also don't
have to follow such an aggressive schedule. There are plenty of us who apply for one card every month or two. After you work through the excellent offers, you're left with a lot of mediocre offers. Is it worth it to chase down a few hundred $'s worth of points? And keep track of dozens of cards? Up to you to decide.
As far as having "too much" credit... it's rare to hear that as an issue. At some point lenders will stop offering additional credit. That's not related to a decrease in score, per se. Mostly their internal guidelines. But that can be an excellent opportunity to reallocate credit to overcome denials.
Also, does earning tons of frequent flyer miles translate into elite statuses? For example, on Continental Airlines, I know that if I fly a lot I'll get into their EliteAccess program. Will earning FF miles achieve the same?
Generally no. Elite status is determined by "elite qualifying miles" (or a similar name), as compared to redeemable miles earned from credit cards.
Some cards offer EQM bonuses, such as some Delta cards. Occasionally that means enough to earn lowest level elite status. However, many of the airline cards offer many elite
benefits without the status - such as free bags or priority boarding.
Hotel credit cards are a little different. Most offer a way to elite status through spending, either with a spending threshold or awarding "elite night stay" credit for certain spending.
Marriott includes Silver, and very high spending can earn all the way up to Platinum. Hilton can earn Diamond from spending. Priority Club is a rare program that counts all points toward elite, so an offer of at least 60k points means instant Platinum.
Look carefully at each offer to determine if it gives any elite benefits.