On average how often do people apply for new credit cards?

Discussion in 'Newbies' started by TUMD, Dec 18, 2013.  |  Print Topic

  1. TUMD

    TUMD Silver Member

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    About how often on average do people apply for Credit Cards? My last batch was Chase Southwest Personal, Southwest Business and Citi AA Executive the first week of October and I was wondering how long I should wait for my next applications?
     
  2. cc1972

    cc1972 Silver Member

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    I do it about twice a year, but I'm in Canada and we don't get nearly as many and as generous offers as in the States.
     
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  3. iolaire
    Original Member

    iolaire Gold Member

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    Rick the frugal trave guy recommends/says that the inqieries fall off after 90 days, so I used to do it after that. I've slowed down but still use that as a guide and try to find a few to apply to when I am applying for another specific card.
     
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  4. TUMD

    TUMD Silver Member

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    Thanks guys! Going to start planning my next batch.
     
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  5. satman40

    satman40 Gold Member

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    Every 90 days, and do not forget to shut down the old ones every 270 days...

    With Chase the perk is only good once for that card, but WN Has 4 different cards...and so do many others...

    Citi is like an X Wife they just let you come back about anytime..
     
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  6. arshavin

    arshavin Silver Member

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    I had different experience with Citi. When I reapplied, I was declined. I called the reconsideration line, was told that I do not keep the card long enough, so was denied too. I have not touched Citi since last 6 months or so. Probably will try next year again and see what happens.
     
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  7. gconnery

    gconnery Silver Member

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    About every 3-4 months. Going a bit longer this time to let things age out, get a little more spend on some cards in bonus categories, let Christmas pass us by, and hit the 365+ day limit on when I cancelled my last Amex SPG Business card so I can apply again. Haven't been tempted by any of the current offers out of waiting so far--the good offers I've seen, like the Amex PRG, I'm not able to apply for as a current Amex Green cardholder. Planning to fix that post/during my next Amex application cycle, but it won't be until 90 days after that that I'm elegible again. So probably Sept - Jan - April/May.
     
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  8. jbcarioca
    Original Member

    jbcarioca Gold Member

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    Obviously the bloggers who get referral fees don't advocate waiting.
    FWIW, at least three major US card issuers include this attribute in their new account opening risk score:
    'number of credit inquiries within last 180 days'. The weights and trigger points for reducing the score vary among the three. Others probably do something like that too, but I have no personal knowledge of that.
    Next, almost all large issuers also do an imputed profitability prediction and some reject applications that fail to meet their criteria. At least two of those are among the issuers commonly discussed in these threads as ones that sometimes reject and/or ban people whose behavior does not meet their criteria. Among the attributes that trigger such decisions are:
    'number of accounts which both opened and closed within xx months'. xx is often 18, but varies widely.
    'number of accounts that met rewards/opening incentive thresholds and closed within xx months of event'
    Both of those and other similar ones apply to internal account opening/using activity only.
    A fair number of second-tier issuers have far less comprehensive decision criteria. Of those that do have, their own marketing staff and Account reps for third party referrals are rarely, if ever, informed of those criteria because their processes are highly proprietary. CSR's, including credit decisioners also generally do not know about these.
    People who generate high profitability and manage to maintain decent credit records are often allowed overrides of these rules, so long as the good results have been with inhouse accounts.
    NOTE: always remember that business cards and consumer cards do NOT operate with the same policies, regulations or laws. All these comments apply to consumer cards, not business ones. Business cards are far less consistent than are consumer ones.
     
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  9. satman40

    satman40 Gold Member

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    Citi seems to want me back when we book an AA reservation.

    A lot of this has to do with your Credit Score,

    Keep an eye on it, they sure do.

    It helps to have a business checking account with Chase, show them the money, and they will show you the Love.
     
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  10. TUMD

    TUMD Silver Member

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    Does a business credit card inquiry count the same as a personal inquiry? Also, have people had success with applying for an AA Business and AA Gold at the same time, or US Airways Personal and Business at the same time?
     
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  11. WhiteDesert

    WhiteDesert Silver Member

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    I've been spending a lot of thought and energy on establishing a sustainable milepoint earning process* that doesn't require a lot of card churning and doesn't require any manufactured spend, but which still keeps my balances growing. As such, I've dropped down to one churn a year and will probably keep that going for a while.



    ______________
    *for my situation
     
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  12. jbcarioca
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    jbcarioca Gold Member

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    The only correct answer is "that depends…". if you have an established business with an EIN and several years of operation with multiple employees and a D&B you are likely to be evaluated as a business and your personal credit might be checked as a reference to an existing account CB update rather than a new inquiry. However, if your business operates as a proprietorship with your SSAN rather than an EIN you will probably see a personal credit bureau pull. That varies by issuer, as does the business/personal card application at the same time, but in a plurality of cases these will be distinct and the two will not interact. No matter what anybody says YMMV. Im my opinion, FWIW, I'd apply for the personal card first, have it approved, then apply for business card second, and I might make a telephone application for the business card in order to specify why you have applied for the personal card and now your business ids applying immediately thereafter, in order to get the benefit of the Business card for your business expenses as well as the personal one for personal expenses. Ordinarily that will work fine with most major issuers, assuming your business and personal credit are both pretty good. Other things being equal if you've at least five hers of history on both personal and business and you've have no past due accounts in either, and no public records (including DWI, reckless driving etc) you'll have no problems. if you've opened accounts with either of the issuers, personal and/or business and closed the accounts immediately after getting a promotional credit both of these will sometimes decline new credit.

    There is a golden rule kind of logic that applies in such cases. if you would extend credit to someone you do not know whose financial behaviour was just like yours probably the issuer would too. If not, maybe not. Gaming their system draws reactions from issuers just like the reactions you as a business owner have when a customer games your system. Businesses do tend to favour customers whose actions are supportive of their own objectives. No magic.
     
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  13. penguinpoopparty

    penguinpoopparty New Member

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    Hi guys! I know I am new here (excited to have found a site like this!), but I do have a bit of knowledge with credit and inquiries and thought I would share. A credit inquiry will stay on your credit report for 2 years, with the credit check impacting your credit score when applying for new credit for at least 1 year. Sometimes you can be lucky and it won't be posted to all the bureaus, or at least the bureau that is then being checked for whichever reason you are having your credit report ran again, but that is the exception and not the rule.

    Also cancelling your credit cards as others have mentioned before is not necessarily recommended. As the length of history of your credit can also impact your credit report. If you keep your credit lines open, it will increase the overall average age of your history, and look favorable. Cancelling cards yearly will keep this average down, and impact the creditors decision.

    Overall credit inquires, and length of credit may not impact your report heavily by themselves, but combined with each other and other factors, it can negatively impact your score.
     
  14. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Do they?

    I just happened to sort through some old files yesterday (for shredding purposes) and came across the credit report/score that our mortgage company had provided us about ten years ago when we applied for a loan. They had three scores for my wife and me each, and each bureau listed as a negative the number of recent inquiries. Note that I wasn't churning at the time, and we weren't shopping arond with dozens of banks for the mortgage. I don't recall exactly what cards I had (and recently applied for), but I can't have been more than 3-4 in the two or three years prior. Certainly zero in the 90 days prior to the mortgage application.

    Things might have changed, or there might be bias in the information from people who often benefit from people signing up for new cards, so use this however you see fit.
     
  15. Sammich

    Sammich Gold Member

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    HSBC did 5 hard hits on me for opening a bank account more than half a year ago. My score went from 700s to 656....

    I was rejected for a Visa Infinite initially because of that. Reason in the system was: "credit seeking behavior imminent. Credit declined"

    Got my banker to call the Visa department directly to tell them it wasn't because of credit seeking to get it approved.

    Two months later I applied for an Amex Platinum and was approved after getting executive customer relations involved.


    HSBC can seriously suck it.
     
  16. iolaire
    Original Member

    iolaire Gold Member

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    This is what I'm referring to:
    http://www.frugaltravelguy.com/2012/08/my-91-day-credit-card-churn-rule.html
    I apply for credit cards on a minimum 91 day cycle for two reasons:
    1.(and my primary reason) I have never been turned down with the reason “too many recent inquiries”. Occasional card applicants may be able to get one here and another one there in the next 30 days, but in the long run, you will be denied for “too many recent inquires” and that is a a tough denial reason to beat.

    Its not to say that they are not visible but I think he is saying that they factor in a lot less after 90 days.
     

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