Is it bad to apply for multiple credit cards at once?

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justbob
 
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Is it bad to apply for multiple credit cards at once?

Postby justbob » Wed Mar 14, 2012 3:12 pm

I already have a AMEX Gold Rewards, a Capital One Rewards MasterCard and a Visa Signature through BB&T.

Monday I applied for a Citi Thank You Preferred MC and was accepted on the website. I was still thinking of applying for a Chase Freedom credit card as well and I was curious if I should wait a few (6) months or bite the bullet and go ahead and apply this week?

I don't plan on using all the cards. I most likely will retire, not cancel, the Capital One and BB&T Visa from rotation and only use them occasionally.

Would it be better to go ahead and apply for the Freedom now, two days after the Citi, or wait? Also, is the Chase a MC or Visa? There is no mention on the website where you apply.

Thanks in advance.


Money card
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Postby Money card » Wed Mar 14, 2012 9:58 pm

I have seen people using both so they come in 2 versions. It doesn't matter whether you use all of your cards or you put a few in a souvenir wallet - they all show up on your credit report.

The banks want to see usage and when they see 4 credit cards and you want a 5th that bank will wonder if we give him the card, will he be able to use the card being he already has 4?

I suppose you can tell 1 of the bankers that you won't be using all 5 at 1 time. I don't know what Chase would say about multiple new credit cards at once.

If they say you have too many cards, then try down the road.

JCarter
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Postby JCarter » Wed Mar 21, 2012 12:04 am

I'd go ahead and apply for Citi, the inquiry will ding you, but presuming you are not planning to apply for more in the next 6-12 months just go ahead and take the hit.

gx240
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Applying for multiple cards at once or spread them out?

Postby gx240 » Wed May 16, 2012 7:53 pm

There are multiple credit cards that I want to apply for in order to use them for different kinds of purchases (a general cashback card for everyday spending, a card with better returns for gas and groceries, etc). I'm trying to figure out if it's better to apply for multiple cards all at once or spread the applications out over several months.

I've heard some people say that if you apply for multiple cards within a period of a few weeks, the hard inquiries are grouped together and they do less damage to your credit score in the long term than if you spread them out.

Is there any truth to this?

Crashem
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Postby Crashem » Thu May 17, 2012 3:52 am

Don't know if above is true. It is true that multiple installment loan inquiries are group within certain time period. The other thing is that fico deducts less points per inquiry if there are multiple. For example, your first inquiry might cost you 20 points but your fifth might only cost you 5 points. What I do know is that inquiries will age together which is nice.
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gx240
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Postby gx240 » Thu May 17, 2012 1:08 pm

Ah I wasn't aware that loans worked like that. That makes it sounds like it is at least plausible that credit cards could work the same way.

DavidNY
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Postby DavidNY » Thu May 17, 2012 3:26 pm

I'm thinking about getting one more card but since I just got the Fidelity cards I'm curious if waiting six months might yield a larger credit line. Banks are so mysterious....

Crashem
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Postby Crashem » Thu May 17, 2012 6:57 pm

No. Only installment loan hard inquries work that way, if they are coded correctly. The FICO scoring will ignore multiple loan inquiries and count as one for FICO scoring. However, you could see denials because of too many inquries even though your FICO score looks okay. Usually you need to call issuer and ask for recon and tell them you were shopping for mortgage/auto etc.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

namvet
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Postby namvet » Thu May 17, 2012 9:00 pm

Find out what bureau the credit card of your choice uses. Make sure each card uses a different bureau. That way you only end of with 1 inquiry for each bureau. Wait 6 months for you next attempt. Inquiries (recent) do the most damage during the first 6 months.

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Postby agp » Thu May 17, 2012 9:27 pm

I've applied for 4 cards and asked for 1 credit limit increase within the past 4 weeks. All but one card got approved (was denied Fort Knox Credit Union because I refused to send them a copy of my license, social, payroll, and paystub; I decided it just was not worth the trouble). If you have the credit score, you shouldn't be afraid to apply for multiple credit cards at the same time.

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