Multiple cards and credit scores
Jul 26, 2004 | 8:10 pm
#1
Original Poster
Join Date: Jul 2003
Location: Madison, WI
Posts: 33
Multiple cards and credit scores
I have signed up several times for mileage cards. I get the card, pay the fee, get the miles, and close the account. My question is, does this kind of activity have a negative effect on my credit score?
Jul 26, 2004 | 9:01 pm
#2
Guest
Posts: n/a
Originally Posted by Panosh42
I have signed up several times for mileage cards. I get the card, pay the fee, get the miles, and close the account. My question is, does this kind of activity have a negative effect on my credit score?
Fallacy: My score will drop if I apply for new credit.
Fact: If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple requests for your credit report information (called "inquiries") will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.
Jul 27, 2004 | 8:21 am
#3
Join Date: Jun 2004
Posts: 58
Originally Posted by Panosh42
I have signed up several times for mileage cards. I get the card, pay the fee, get the miles, and close the account. My question is, does this kind of activity have a negative effect on my credit score?
Aug 17, 2004 | 2:19 pm
#4
Join Date: Jan 2004
Location: FL
Programs: AA PLAT, HILTON DIAMOND, MARRIOTT LIFETIME TITANIUM
Posts: 616
Originally Posted by Panosh42
I have signed up several times for mileage cards. I get the card, pay the fee, get the miles, and close the account. My question is, does this kind of activity have a negative effect on my credit score?
Aug 20, 2004 | 7:32 am
#5
Original Member
Join Date: May 1998
Location: Tampa, FL
Programs: AAMM & PLT; UA Gold, DL Silver, Marriott LT Titanium Elite, Hilton Diamond, Hertz #1 Gold Club
Posts: 1,592
Originally Posted by jimcoddington
I have 7 credit cards that obtain various frequent flier miles, and my credit score is almost perfect, for I have never made a late payment and always pay my balance in full.
Sep 2, 2004 | 2:21 pm
#7
Join Date: Jul 2004
Location: The Big D
Programs: AA, CO, DL, WN, SPG Gold
Posts: 1,842
Originally Posted by United935
i also have several cards but am unaware of my credit score potentially being affected...how do I find out if there's been a negative impact ?
What can potentially affect the FICO score is the the length of time you have had credit w/ a company. In other words, you change credit cards every year. It's why I have a Visa I have had forever... just for that purpose.
If you are 750 or above, it won't hurt you much because that's the top tier of creditworthiness. Below that, it becomes harder to judge... because they don't release how they actually figure out your FICO score to begin with!
Sep 19, 2004 | 10:25 am
#8
Join Date: Sep 2004
Posts: 534
multiple inqs for credit cards are -not- treated as a single inq as listed above; that only applies to auto loans and mortage loan inqs over a short time period(2 weeks, maybe 4, if memory serves).
Since more than 2 inqs will start dropping your fico score(usually 2-3 points per inq), you would be wise to check your scores for each credit bureau at myfico.com before you start opening zillions of card accounts.
Since more than 2 inqs will start dropping your fico score(usually 2-3 points per inq), you would be wise to check your scores for each credit bureau at myfico.com before you start opening zillions of card accounts.
Sep 28, 2004 | 10:22 am
#9
FlyerTalk Evangelist
Join Date: May 2000
Location: أمريكا
Posts: 26,931
Opening and closing a lot of accounts (churning) can have a negative effect on your score. For one, it significantly decreases the average age of your accounts, which makes you look like more of a risk.
It also means there are a lot of inquiries on your account - another negative factor.
But if you buy your score, they will tell you the top positive and negative factors that are affecting your score, so you can get some idea.
It also means there are a lot of inquiries on your account - another negative factor.
Originally Posted by DallasBill
Go to MyFICO.com and pay the money and find out.
...
If you are 750 or above, it won't hurt you much because that's the top tier of creditworthiness. Below that, it becomes harder to judge... because they don't release how they actually figure out your FICO score to begin with!
...
If you are 750 or above, it won't hurt you much because that's the top tier of creditworthiness. Below that, it becomes harder to judge... because they don't release how they actually figure out your FICO score to begin with!
Sep 28, 2004 | 2:39 pm
#11
Join Date: Apr 2000
Location: Phila Delta ex-PM, ex-UA-PE
Posts: 2,665
Instead of closing them (assuming you do it almost immediately), keep it open until the next renewal period, but have your credit line reduced. It's not necessarily the number of credit cards you have, but rather the amount of available credit you have. Once the renewal comes due (assuming there's an annual fee), then cancel it, at least then you would have had the card for close to a year, which will look better than 1-3 months.
Jeff
Jeff
Sep 29, 2004 | 9:34 am
#12
Join Date: Feb 2001
Programs: UA 1k, AA Plt, MR Lifetime Plat & Amb
Posts: 1,829
In Frebruary my credit score was 714.
Since February I have applied for and received the following:
Since February I have applied for and received the following:
- 5 UA Visa cards with the 20,000 mile bonus
- 1 HH Amex
- 2 PC Visa cards
- 1 AA Master Card
- 2 NW Visa cards
- 1 AS Visa
Oct 5, 2004 | 10:57 pm
#14
Join Date: Aug 2004
Location: Seattle
Programs: United Airlines Premier, Starwood Gold Preferred Guest, Hyatt Gold Passport, Club Carlson Gold
Posts: 356
Originally Posted by Dudemon
In Frebruary my credit score was 714.
Since February I have applied for and received the following:
Since February I have applied for and received the following:
- 5 UA Visa cards with the 20,000 mile bonus
- 1 HH Amex
- 2 PC Visa cards
- 1 AA Master Card
- 2 NW Visa cards
- 1 AS Visa
Oct 6, 2004 | 12:43 am
#15
Join Date: May 2003
Posts: 6,417
Originally Posted by vtqanh
How were you able to apply for 5 UA Visa with the 20,000 miles? You can only apply once for every 90 days.