Applying for Multiple Credit Cards: Anyone REALLY Know the Rules?
#1
Original Poster
Join Date: Aug 2001
Location: Tha OC
Programs: Outgrew all status except AA: Plat for life (the program's); Costco: Ex Plat
Posts: 654
Applying for Multiple Credit Cards: Anyone REALLY Know the Rules?
4 in 14 (cards in days).
High limits, low balances.
High limits, high balances.
Cancel unused cards.
Don't cancel unused cards!
A lot of theories and conflicting information.
Does anyone really know the optimal way to apply for multiple credit cards?
This subject has never been more important, what with all the huge signup bonuses around -- 50, 100,000 miles.
I've got decent credit, but have been turned down lately for "too many apps".
I lost out on the great BA 100K deal.
I'd like to get things straight before the next great offer.
Any help?
High limits, low balances.
High limits, high balances.
Cancel unused cards.
Don't cancel unused cards!
A lot of theories and conflicting information.
Does anyone really know the optimal way to apply for multiple credit cards?
This subject has never been more important, what with all the huge signup bonuses around -- 50, 100,000 miles.
I've got decent credit, but have been turned down lately for "too many apps".
I lost out on the great BA 100K deal.
I'd like to get things straight before the next great offer.
Any help?
#2
Join Date: Apr 2010
Posts: 519
4 in 14 is way to much. Once you get denied once give it a rest for a few months. Also If you are requesting various cards to the same issuer they may have a problem, for example BA, Continental, United are all Chase cards. Some people try to lower their credit line to get a new card with the same issuer.
#3
Join Date: Apr 2010
Programs: SPG Gold
Posts: 142
with every denial you received, you sould be able to have a free copy of the credit report pulled by the individual issuing bank for free. You need to know which credit agency the banks got credit report from and how many hard pulls you have in the report. You might want to apply for the card with potential hard pull from the same credit agency in six months. It is way too frequent to apply for 4 cards in 14 days.
#5
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Mike
#6
Join Date: Dec 2009
Location: Los Angeles
Programs: Hyatt, Hilton, Marriott // WN, AA, BA, UA, AS // Avis
Posts: 1,314
In the past 9 months, in the following order:
1) Applied for Amex Gold Premier, approved
2) Applied for Citi AAdvantage MC, approved
3) Applied for SPG Amex, approved
4) Applied for PenFed Cashback Visa, approved
5) Applied for HawaiianMiles Visa, DENIED
I also canceled my old Citi Platinum Select (had used for BT 2x) that was no longer needed and only had a $1,600 CL.
As soon as I was denied for the HawaiianMiles card, stopped any new applications, and dont plan to start up again until late this year or early 2011.
1) Applied for Amex Gold Premier, approved
2) Applied for Citi AAdvantage MC, approved
3) Applied for SPG Amex, approved
4) Applied for PenFed Cashback Visa, approved
5) Applied for HawaiianMiles Visa, DENIED
I also canceled my old Citi Platinum Select (had used for BT 2x) that was no longer needed and only had a $1,600 CL.
As soon as I was denied for the HawaiianMiles card, stopped any new applications, and dont plan to start up again until late this year or early 2011.
#7
Join Date: Jun 2008
Location: PDX
Programs: OnePass, MilesPlus, AAdvantage, SkyMiles (unfortunately), PC Plat, HH Silver, Marriott Aluminium
Posts: 739
There are way too many variables for anyone to definitively say if and when any card will be approved or denied. That being said, I've found the 2 major deciding factors for me have been 1)Quality and length of credit history and 2)Percentage of total available credit being used. Actually, make that 3: DEBT, over and above credit card debt, would be a big one too. For me, income must be a very low factor as I've never claimed much more than $30,000/yr and still have yet to be denied a card. (14 for 14 within the last 20 months). The fact that I have zero debt probably, or evidently, offsets the low income.
But like others have said, you need to have a long-term plan if you're going to do this successfully. Spread the banks and types of cards around and don't try to load up in one area too quickly. Patience is the key. (Although 14 cards in 20 months may not qualify as patient for many out there .
But like others have said, you need to have a long-term plan if you're going to do this successfully. Spread the banks and types of cards around and don't try to load up in one area too quickly. Patience is the key. (Although 14 cards in 20 months may not qualify as patient for many out there .
#8
Join Date: Jul 2009
Location: SEA
Posts: 2,556
I'm unclear on "percentage of total available credit being used"
Does it mean, for example, if I have a $16,000 credit line on a given card but never run a balance over $1,000 at any time, my "percentage of total available credit being used" would be 6.25% at most ($1,000 out of $16,000)?
If so, would it be better (for purposes of getting other credit cards) to request that my credit line be reduced - from $16,000 down to $3,000 or so?
#9
Join Date: Jun 2008
Location: PDX
Programs: OnePass, MilesPlus, AAdvantage, SkyMiles (unfortunately), PC Plat, HH Silver, Marriott Aluminium
Posts: 739
I'm unclear on exactly what "percentage of total available credit being used" means.
Does it mean, for example, if I have a $16,000 credit line on a given card but never run a balance over $1,000 at any time, my "percentage of total available credit being used" would be 6.25% at most ($1,000 out of $16,000)?
If so, would it be better (for purposes of getting other credit cards) to request that my credit line be reduced - from $16,000 down to $3,000 or so?
Does it mean, for example, if I have a $16,000 credit line on a given card but never run a balance over $1,000 at any time, my "percentage of total available credit being used" would be 6.25% at most ($1,000 out of $16,000)?
If so, would it be better (for purposes of getting other credit cards) to request that my credit line be reduced - from $16,000 down to $3,000 or so?
So the lower percentage the better.
The only reason I can see where you'd voluntarily lower a credit limit is if you are bargaining with a credit card issuer and they assure you of approval if you lower a CL on another card. Then go for it. But I definitely wouldn't just voluntarily request a lowered CL in hopes that might increase future apps. Wait until they tell you that. But even better, try not to carry much, if any balance at all if possible. In my experience, they seem to like that a lot.
#10
Join Date: Jun 2008
Location: PDX
Programs: OnePass, MilesPlus, AAdvantage, SkyMiles (unfortunately), PC Plat, HH Silver, Marriott Aluminium
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Oh, and one more important thing: try never to cancel a card. Especially if the card has a long and clean history. I made the mistake of believing the old "too many cards is bad for your credit" adage and canceled a couple of old cards I never used but then came to understand I just shot myself in the foot by losing a nice chunk of two of the most important things you can have in your credit report: History and Quality. It doesn't all drop off your report immediately upon cancellation of course but still, I could have had that nice history safely there for a lot longer.
Now the only reasons I will cancel a card is if I don't want to pay an exorbitant fee (which usually means there isn't even a year of history to lose from the card anyway) or if a credit card issuer tells me to close one in order to get another one I want or I know beforehand that that's going to be the case. Otherwise I keep all the good history I can for as long as I can. I'll even use an oldy, moldy card once in a while just in case the credit card issuer might get the idea of closing a card on their own due to it not being used in the last 10 years.
Now the only reasons I will cancel a card is if I don't want to pay an exorbitant fee (which usually means there isn't even a year of history to lose from the card anyway) or if a credit card issuer tells me to close one in order to get another one I want or I know beforehand that that's going to be the case. Otherwise I keep all the good history I can for as long as I can. I'll even use an oldy, moldy card once in a while just in case the credit card issuer might get the idea of closing a card on their own due to it not being used in the last 10 years.
#11
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You don't want to cancel cards you've had for years, but canceling "young" cards can be to your advantage. Total available credit is one part of your credit rating, and having too much can work against you. Of course, you can always request lower credit limits to try to keep the advantage of both.
#13
Join Date: Jun 2008
Location: PDX
Programs: OnePass, MilesPlus, AAdvantage, SkyMiles (unfortunately), PC Plat, HH Silver, Marriott Aluminium
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I've heard this before but still not sure what it exactly means. Are you saying if I spend $10,000 each month my report will somehow still show me carrying a balance of $10,000 regardless of the month's closing balance showing $0.00 due to the early payments? Not sure how that would work. It seems like a "balance", by definition, would be the balance of your charges that are not paid during that month and carry over to the next month and is subject to interest. None of my charges are ever carried over and therefore never subject to interest and therefore are never technically a "balance". But you're saying the credit report makes no distinction between paying off a $10,000 charge each month and making a small payment every month on a $10,000 balance? You would think that would be a pretty critical financial distinction they would want to make.
#14
Join Date: Apr 2009
Location: SMF
Posts: 1,262
+ on this. It's the only reason why I continue to carry my non-miles first credit card. Also, if you DO cancel a credit card, I understand it's wise to ask the bank to make sure that it's labeled as "client closed" and not bank-ordered closed.
#15
Join Date: Jan 2008
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I've heard this before but still not sure what it exactly means. Are you saying if I spend $10,000 each month my report will somehow still show me carrying a balance of $10,000 regardless of the month's closing balance showing $0.00 due to the early payments? Not sure how that would work. It seems like a "balance", by definition, would be the balance of your charges that are not paid during that month and carry over to the next month and is subject to interest. None of my charges are ever carried over and therefore never subject to interest and therefore are never technically a "balance". But you're saying the credit report makes no distinction between paying off a $10,000 charge each month and making a small payment every month on a $10,000 balance? You would think that would be a pretty critical financial distinction they would want to make.
Whatever anyone says frequent applications for new credit do make a major difference for most issuers. A decent rule is to apply for a new card not more than once every six months, but many people do more and get away with it. The problem for them is what they do if they actually really do need credit sometime and have lots of new credit in their files. It's probably short-sighted to chase miles with new cards as a regular habit.