g1ant

OK, I've read on here before that applying for a credit card results in a hard inquiry going on your credit report and too many of those affect your credit score.

Since I've been here in March, I have successfully applied for two citibank American Airlines credit cards (one personal and one business) and received 20,000 and 25,000 bonus miles. Enough for a free trip home in the winter. Neither of these applications showed up anything on my credit report.

I have now got a Chase United Airlines Visa card which gave me 20,000 miles on United and topped me over the 50,000 mark for another free trip. That one did show up on my credit report and dropped my FICO score from 715 to 713.

Now, Citibank want me to have a CitiPlatinum American Express card and will give me a $100 gift voucher if I sign up.

So, the question.

If you really don't give a hoot what your FICO score is (my house, both cars and all the furniture is paid for) is it OK to keep applying for these cards and taking the goodies offered?

If so, how many is too many?

Alex.

Chorlton

I dont think you have anything to worry about. If you're not planni ng on getting a big loan in the future, go for it. A few points won't make any difference to you. Last time I checked my score was a little higher with more cards. They like to see you borrow money and pay it back. after a while, those card additions won't even matter.

blaze

Did you get all those sky miles just for opening the accounts or did you have to make purchases on them first? Because if it is the former then I think they will have an influx of BE members signing up in the very near future!

BritGuyTN

Yes it generally is a bad idea, but if you don;t care about loan rates, the ability to get credit, potentially higher rates on insurance then its OK

When you say you checked your 'credit report', which one did you check?

There are three reports and are likely different

there are only a few credit card companies that cehck all 3, crap one being 1 of them/ most of the time they just check on og the three

also bear in mind that number of inquiries is just one thing that has an effect on fico

also, in your circumstances the following could be a factor:

length of time accounts are held open on average is reduced every time you open a new on

length of time since credit card was opened can also reduce fico

now I have been here 3 years and I have an AMex and Visa card (1 of each) the only new credit apps I make now are to make me money - i.e. mortgages on investment property. Even 1 point on you fico socre can make a bug difference in mortgage rate or terms.

I had Amex send me an invite for a platinum charge card that I would normally have taken up, but I had a property deal coming up and I did not want any adverse impact

g1ant

Make sure the offer you take up is free for the first year. Then you have to spend $250 on the cards before the miles credit. Then shove the card in the shredder.

Don't forget to cancel the card after 11 months though so you don't get hit by the $85.00 annual fee.

Get one of each of these and you are on your way home for free.


alex.

Rodney you plonker

It just depends on whether or not it gets reported, 2 points is a standard hit for a hard enquiry that is reported, the hits become null and void after 6 months, when you see a credit report (not the FICO), they report on how many hits you have had in the last 6 months.

I used lending tree one time and they gave my social to about 30 different banks, my credit score dropped by around 50 points and I couldn't get a decent because mortgage my score went below 660. I nearly sued them. 6 months later I was fine.

I did a little digging around back then and what I found out is that there are certain mile stones in the credit scoring world, 660 is one for sure, but also, there is another one at 720, you are almost at 720 so you are right to protect what you have, once you get to 720 you will become eligible for better deals/rates etc. etc.

Another thing that will drag your score down is if you let the balance of the credit card go above 50% of the maximum allowed.

NEVER USE LENDING TREE, BELIEVE ME THEY ARE A BUNCH OF SHARKS.

TruBrit

and if rodders says so then they must be coz it takes one to know one

love the new avatar btw

Chorlton

Everyone remembers batman and the chandeliers

fatbrit

I find it's useful to put your scenarios through the FICO estimator.

Also, the more cards you have, the more exposure to ID theft, mistakes (both yours and theirs!) and corporate rip-offs you take on.

g1ant

That is true, but if you take the goodies and shred the card, it cuts down the chances of that.

a.

fatbrit

You can always tell 'em to stop sending you the "goodies" like freakin' stupid so-called convenience checks sitting in your mail box just begging to be stolen. Sometimes they listen, sometimes they don't.

When you activate the card, activate the privacy policy and also tell 'em to send you absolutely nothing except the bill every month.