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question for Monkey mama and ceejay

August 18th, 2011 at 10:21 am

When you apply for various rewards credit cards, do you wait a certain interval between credit card applications? Will applying for too many cards too frequently affect your chances of getting approved?

6 Responses to “question for Monkey mama and ceejay”

  1. starfishy Says:

    i'm also curious if applying for, opening and closing so many credit card accounts negatively effects a credit report?

  2. patientsaver Says:

    I asked that question before, and MM says no, not at all. But I'll let them respond again if they see this....

  3. patientsaver Says:

    I think the caveat to all these great cash back cards if that you have to excellent credit to be approved and you must be the kind of person who religiously pays off the card in full each month.

  4. ceejay74 Says:

    I applied for 2 cards in quick succession and was approved for both. The other two I had NT and AS apply for, but I wouldn't be surprised if I'd applied for all 4 and been approved, judging from MM's experience.

    I checked CreditKarma before I did all this and again just nnow (I know it isn't the same as an actual credit score, but just to give you an idea). I show that my score went down 4 points, AS's decreased 11 points, and NT's went down 19 points. I bet it was more from closing old cards, which I'd been meaning to do even before I applied for these others, but it's difficult to say.

    NT's especially, since he had barely any credit history in the U.S. and I closed a couple of cards that he was on. And one of AS's that I closed was 12 years old, so that probably affected the longevity of her score. Notice that I applied for more cards, and my name is on all 4 accounts, yet my score decreased the least. That's why I think closing accounts had more effect than opening.

    Anyway, we all had great scores before and we still have great scores now, so I'm happy. I don't have any compelling reason to worry about my credit score, though; I'm not planning any major purchases or refi's in the near future.

    I used to juggle my debt with 0% balance transfer offers all the time when I was on the wrong financial path, and my credit score was always great. Maybe not at the pinnacle it could be at, but I never had a problem qualifying for anything I wanted.

  5. MonkeyMama Says:

    I've had no issue with applying too frequently.

    Personal experience is dh and I have a general rule that we will open 2 cards annunally (each) for one-time rewards. This is the most we have ever done. In the last 20-ish years, I've had no reason to apply for more than that. Even with this *crazy* and lucrative year, we have both only applied for 2 cards thus far. That said, I applied for a new AmEx for ongoing rewards, about 9 months ago, and the new Target card about a year ago. So, basically I have applied for 4 cards in one year - hasn't made a bit of a difference. Several cards were with Chase.

    My understanding is people apply for these rewards WAY more often with similar results. I have read about people continually applying for the same card for a rewards, earning reward, closing, and applying again. Over and over. We might test it out this year. I am consdering applying for Chase Freedom again (just closed my old one). There will probably be more this year.

    I actually keep an eye on my creditkarma account and opening and closing all the cards I have this year has not changed my FAKO score by one point in either direction. (I've had my score go up at times for doing all the things you *aren't supposed to.*)

    That said - I have an excellent FICO score to begin with, carry no balances outside mortgage (never have) and I close every single card when I no longer use them. Thus, I don't have like 40 open credit cards out there. I usually only keep 2 open credit cards.

    For reference, when my identity was stolen, someone opened up 6 or 7 cards in my name over the course of 2 days and was approved for every single one. That wasn't so hot for the credit score, but probably because they maxed them out more than any other reason. Big Grin One or two of the cards told me it was "suspicious," and wasn't surprise I Called about the fraud, but it was not suspicious enough to decline them or disallow the charges. Rolleyes
    Anyway, if you have GOOD credit, it's pretty hard to lower your FICO (if you always pay your balance before due date), and it's hard to be declined for any credit card offer. That's pretty much my experience.

  6. starfishy Says:

    thanks for these responses. i just noticed that i keep getting Chase Freedom card offers with a $250 reward for first time use (or something like that). I usually don't read them, so maybe I will start looking and seeing what rewards/cash opps are out there. i had no idea!

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