I don't totally get this. Are there offers that give you miles just for signing up that DONT also charge a signup fee?

I didn't know the poll would generate so much interest in credit scores. Here's a good piece on credit scoring:
http://www.bankrate.com/brm/news/spe...sp?prodtype=cc

The number of credit cards you have (and how often you switch) plays a part in your score because one of the numbers computed is your average length of credit history. Having accounts for a long time is better than having them a short time and every time you switch you are reducing your average.

But bear in mind that length of credit history is just one of many factors that's used to get a credit score.

IMHO, the negative effects of card surfing for miles are being way overblown here. A quote from the bankrate.com article:

However, experts say that inquiries typically account for less than 5 percent of a consumer's credit score.

"The inquiries are the least significant factor considered by FICO scoring models," says Craig Watts, consumer affairs manager for Fair, Isaac and Co. "Much more important is how you pay your bills and how much you owe. Those two factors make up two-thirds of a score."



[This message has been edited by dhacker (edited 01-21-2002).]

I did have a problem once obtaining a mortgage because I had too many credit card accounts open. They told me that they took the total credit available to me on all accounts and figured out the minimum monthly payments on that, and then used that against my total income. Some credit cards keep increasing your credit line and you really don't notice - I had one over $14,000 - which can count against you. I now keep just 4 or 5, Starwood Amex, AAdvantage MC, Hilton Amex, Hilton Visa, and 1 that I open and close to get bonus points.

I'm sure this is true, but its a different issue than the effects of multiple inquiries or opening then closing accounts.



[This message has been edited by dhacker (edited 01-21-2002).]

This is very informative topic, thank you for starting it and thanks to all who have contributed.

I don't think i have great credit...as I had big problems in the good ole college years...i was typical, had 10 cards and transfering balances amongst them like crazy.

For the mortage...the broker told me that my credit is not great but he can work it out as long as I pay off the DC bill, i explained to him that the DC bill has a 60-day billing cycle..what he sees is only for 30 days... so out of pure luck of meeting this great guy...my mortage was approved! (personally, i think he being a Chinese broker gave me some slack,)

FWIW, i had more trouble getting AMEX cards then anyone. They kept saying that my score is not up to their standards...and when they finally approved my Starwood card...they only gave me $2k



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mailto:[email protected][email protected]</A>

Afang, have you ever called to try to get your Starwood limit raised? They gave me $2k also, but after 6 months you are eligible to request a limit raise. When I called to ask them to raise it, they said that since my account was in good standing, they could raise it as high as $20k without doing an income verification, or further credit check. I had them raise it to $10k. As I never have more than about $2k on it, I'm goign to get them to cut it, as I am cleaning up my credit card accounts in preparation for obtaining a new mortgage soon.

http://www.the-dma.org/consumers/offmailinglist.html

This is little off topic, but there is form letter you can print and mail into the Direct Marketers Association and have your name removed from many of those unsolicited junk mail lists. I did this at my last address and was amazed at the reduction of junk mail I was receiving, including unsolicited credit card offers.

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Rachel
CO - Platinum
Hilton - Diamond
SPG - Platinum

I'm kind of new to this, but I'm a little confused: I was just about to sign up for an American Airline credit card deal that offered 5,000 bonus miles, but it had a $50 fee. Are there offers like that, but that don't require fees?

The point of the bonus is that it should outweigh the annual fee. For example, last year the NWA Visa had a 10K bonus for signing up and then a 3K bonus for auto-billing. So that 13K miles worth about $325 (at 2.5 cents/mile) for an annual fee of $90.

Standard affinity cards carry a fee, which is why savvy card users will wait for a bonus to switch cards.

Howyadoin, welcome to FT! The offer you got is a good one, but some people have been able to hunt and find offers for up to 10,000 AA miles for the same $50 annual fee. Do some searching for 'Visa' and 'Citibank' in the American Airlines & Visa/Mastercard forums and you may find the info.

dhacker The operative word from your posts is 'typical'.

A credit score calculation takes into many variables. The multiple opening and closing of credit lines may not be harmful for some people -- even many people -- but for others it can be quite bad. The potential damage depends on other aspects of the person's credit history, current behavior, and type of loan that the person wants/needs today.

Agreed -- as I tried to say in my original post to this topic

Early last year we opened a business. Since we personally had to guarantee everything, I was getting credit checks out the wazoo (checking account, line of credit, bonding, equipment loans, company credit cards, etc.). The first time the bank ran a credit check, my FICO score was 751. Three months later I applied for a personal credit card (trying to get the bonus) - I was turned down because of too many inquiries. When I called them, they said my FICO score was down to 650 because of the number of inquiries - no late payments in five years, but too many inquiries.

Since we're looking to buy a house, I haven't changed credit cards since then and my FICO score has come back to a decent level (so my mortgage broker says).