Need advice after big sloppy first AOR

Discussion in 'General Discussion | Credit Cards' started by Jonhello, Feb 25, 2013.  |  Print Topic

  1. Jonhello

    Jonhello Member

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    I have come just recently to the miles and points game. At first I heard about cash back bonuses of credit cards so I jumped on various cash back cards (Capital One and Penfed). But then I heard about high bonuses and the nuances of miles and points. So I applied for a few more (from CITI, Chase and Amex). I originally started with 2 cards but in a matter of 2 weeks I applied and obtained approval for 10 more cards.

    In the beginning of my spree (when I had only applied for 2 cards), I checked my credit ratings. My FICO score was 802 and my Credit Karma Transunion score was 769. After one week and 8 more applications, my Karma rating dropped 46 points to 723. Wow, was I shocked! This was not only due to the many inquiries. According to Karma, I get an F on Age of Credit history as my oldest account is only 5 years and the average account ages is a measly 1 year and 3 months.

    Today I checked my true scores on Amex CreditSecure. At present, my credit scores are
    Experian 748 (RA revolving account-12; 5 inquiries in the last month)
    Equifax 767 (RA-10; 3 inquiries in the last month)
    Transunion 734. (RA-12; 7 inquiries in the last month)

    In the past week, I have read up on the various strategies and learned about my newbie mistakes. I thought about not filling in more apps for a few months. However, I realize that in the next 2-3 months I will be making many purchases (mostly airfare for a team to travel). In other words, I will be able to make minimums for bonuses now that I won't be able to in the future because I really don't have many expenditures nor can I take advantage of the various strategies to make minimums as I live overseas (expat). No Vanilla recharges for me.

    Right now I have only one Chase card (Sapphire Preferred). I really would like to get the Chase Bold Ink and the Chase Priority Choice cards.

    So my questions is for you are the following:
    Would an app or 2 with Chase just drop my score a couple of points or at this point would each app drop my score exponentially?
    How long does one need to wait before scores start climbing back to normal?
    Should I risk applying for Chase Bold?
    Is it possible to use proof of a decent amount of easily liquidible assets (bank and brokerage accounts) as a factor for approval?
     
    Schali likes this.
  2. Mrlasssen

    Mrlasssen Silver Member

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    Ten card approval is fantastic, but a hefty price to pay. I would stop and wait for my credit rating to recover. Two questions, do you have a plan to meet the spend limits, and what will be the total points/miles earned?
     
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  3. Jonhello

    Jonhello Member

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    Thanks for the encouragement. I didn't realize that it was quite the haul until after the fact.

    Along with my spouse's two approved apps, we have the following:
    1. A spend limit of around $125,000
    2. The need to reach $10,000 in 3 months with an extra 5,000 in a 6 month span to qualify for the various bonuses
    3. Total bonus is 400,000 miles (along with some cash back bonuses).

    Initially by May we will purchasing around $20,000 of tickets for a team business trip. Then in the summer we will spend another 5-10k in travel expenses. I will probably use some Amazon payments for some of the smaller spend limits ($750).

    How long do you think it will take for my credit rating to recover?

    Here is a list of what I have recently applied for and have had approved

    My First AOR
    Chase
    Chase Sapphire Preferred

    Citi
    Citi Hilton Hhonors Visa Gold 1
    Citi Hilton Hhonors Visa Gold 2
    Citi Aadvantage Platinum *

    Amex
    Amex Hilton Hhonors
    Amex Gold Delta Skymiles

    Barclays
    USAirways Dividend Miles

    Penfed
    PenFed Platinum Rewards Visa

    Capitol One
    VentureOne Cash Back

    Discover it (I regret getting this one as it isn't accepted widely in Europe and certainly not where I am; probably won't use it much)


    My spouse's First AOR
    Amex Premier Gold
    Amex Starwood Preferred Guest
    Chase Sapphire Preferred (pending; we will be calling tomorrow concerning the status)
     
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  4. Jonhello

    Jonhello Member

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    Just wondered if anyone would like to add their advice or experience to my question/situation.
     
    Schali likes this.
  5. merice107

    merice107 Silver Member

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    I am by no means an expert, but unless you need a different type of point (you have Chase UR but needs Citi Thank You), I would just put the spend on the cards you have. Let your credit score recover.
     
  6. robertw477

    robertw477 Silver Member

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    I see no tradegy here. You wanted some bonuses and you got alot of cards. Who cares what credit Karma report card says. Those credit report suggestions are always foolish. Your income/stocks holings have no importantce getting more cards like Chase. You got alot of recent ammo. My suggestion is not to apply for any cards like Chase right now. Definitely wait 3 months, handle your spends on these and dont worry about account age either. I recently got several new cards and right nowdue to utlization took a huge score hit. Who cares? Within 60 days the utilization reported with be very small and I will be ready again. My utilization is business expenses which are paid on time monthly but will still show since I did not pay them prior to billing statement posting to report.
     
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  7. Schali

    Schali Silver Member

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    I have ten cards right now as well, I did my second AOR with 4 cards in December - and just applied for the Bank of Hawaii card and Barkley's US Airways card 2 weeks ago (Didn't get approved for the Barkley's card). My credit history looks pretty much like yours - my oldest account is from 2009 - and I am back to 815 with Transunion. My battle plan is to cancel a few cards around June and consolidate my cards.

    I will wait 3-6 month for my next round of CC. Chase has good cards but I don't want to push it to far with them ( I have United and Priorityclub CC with them already).

    I do only have 1 AmEx and they are high up on my radar for new cards.

    Anyways my experience is to wait 3-6 month for the next round and be organized with the minimum spending and what you put on the cards (and paying off all the cards on time). I can see that I am getting sloppy with my monthly expenses by putting everything on CC and spending soo much more.
     
  8. Jonhello

    Jonhello Member

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    Thank you all for the helpful advice!

    I decided to give it a rest for a few months and though I would have done things differently (Southwest, Ink and First Choice would have been in my first AOR) I will chalk this up to the process of learning.

    However, two days ago I actually went ahead and applied for a Chase card, not another card but the same card that I had been accepted for. This was because Chase had made a mistake and sent me the Sapphire classic and not the Sapphire Preferred (long story). After much time on the phone, the representative encouraged me to apply again as they had their hands tied. So I did. A couple days later a fellow called from the bank and approved me for the Sapphire Preferred. So one more hit on my credit score, but I guess it is worth it. Despite the mistake, the reps from Chase were very courteous and helpful. My overall experience with Chase has been good - good customer service (despite the original mistake).

    I am still waiting for an answer for my spouse's Sapphire Preferred card. I think we will try a Southwest card for her next month and then give things a rest for a few months.

    Thanks for the helpful advice and encouragement.
     
  9. chemist562
    Original Member

    chemist562 In Memorian

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    I would do both the SW biz and SW personals for your wife. Between that and 10K pts transfer, she would have the companion pass. (50K biz, 50K personal plus 10K transfer from Marriott/Hyatt). Note: you will take some loss of point value (CSP to Marriott/Hyatt--the companion pass is quite valuable as one of you travels for free--even on award tickets!!). Read the various blog posts plus the SW thread on MP to get more information.
     
  10. mooeyjc

    mooeyjc Active Member

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    In my opinion, if you can meet the spending limit, and paying the balance in full each month, there is no problem at all.
    The dropped Credit Score will come back after a while ,and even reach a new height with your added cards and limit.

    To your original question, since you already got your Sapphire preferred, you could just hold onto applying for the Ink Bold/Plus. Unless that 5k spending requirement is nothing to you, I'd do it right now. You got nothing to lose.
     
  11. Jonhello

    Jonhello Member

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    That would be great. However, my wife is a homemaker. We could possible set up a system where she receives income from me, but I know she won't be willing to try to convince the Chase rep on the reconsideration line. However, if the card offers are still around in a few months I will apply then for both.
     
  12. Jonhello

    Jonhello Member

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    I am not sure I understand. Are you saying that since I have the Sapphire preferred I shouldn't worry about procuring the Ink Bold? Or that because of the spending limit of 5000, I should go ahead and apply since I would easily meet its limit at this time (but might have a problem in the future)? And I shouldn't worry about another pull?
     
  13. mooeyjc

    mooeyjc Active Member

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    I meant to say two things.
    Since you are already getting hit a bunch of hard pulls and just got your Sapphire approved, it doesn't hurt much to add one more hit to try to get the Ink Bold. But that just my personal opinion. You can certainly wait 91 days and start your next AOR.
    Many people does not apply for a lot of cards at one time is because the high spending requirement. If spending another 5000 for your Ink Bold (assuming you are going for it) isn't an issue, that certainly adds the incentive to apply for it.

    If I were in your boat I will hit the Ink Bold now and settle for a period of time before starting another round of application.
     
  14. StartInSanDiego

    StartInSanDiego Silver Member

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    I would keep a close eye on utilization and posted (to the credit bureaus) balances. Keep your utilization low, and make sure that you pay your bill BEFORE the closing date of the statement. Then your balance will show as zero. Two little tricks I learned after my 800+ score dropped like a brick due to my new hobby.
     

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