Applying for MULTIPLE credit cards on the SAME day.
Recently, I’ve received some emails with questions about app parties (a.k.a. applying for multiple rewards cards on the same day), so I thought I’d cover it here:
why do we multiply?
I apply for multiple cards on a single day to earn (not sure if I’m really earning) a BIG MILES PAY DAY and to buffer the minimal negative impact on my credit score. I’m a man of structure and organization, so keeping my apps on a single day (every 90-95 days) helps me maintain my sanity.
- Banks do a hard pull or inquiry on your credit report when you apply for a credit card. This results in only a 2-5 ding on your credit score. Your credit score will easily recover from the initial ding if you pay your bill in full and allow the account to age. Doing apps on one day will minimize the negative impact on your credit score.
- If you apply for multiple cards on the same day, most banks won’t be able to see the other hard inquiries on your credit, but they can see the inquiries or the effect of the inquiries if not done on the same day.
always think through your apps
You must always have a PLAN if you are going apply for multiple rewards cards on one day. Here was my thought process on my last app party in February:
SPREAD IT OUT: The banks will most likely pull only 1 of the 3 credit bureaus when they do the initial inquiry to see if you are credit worthy for their rewards card. Transunion, Experian, and Equifax are the three credit bureaus, so you want to spread out your applications over the three. You can go to creditboards.com and check to see which bureau a bank will pull in your area. Unfortunately for me, Chase and Amex both pull Experian in my area, so I have to get creative. I went with the US Airways card from Barclays because Barclays pulls Transunion, it’s churnable, and the 40,000 sign-up looked nice added to my Grand Slam earnings.
TIP: Capital ONE will pull all THREE. Son of a b.
ADD IN A BIZ: Mixing in business cards with your personal cards is a great way to ADD to your miles balance. Even better news, is you don’t necessarily have to have an incorporated business. Check out my post about how to earn miles as a sole proprietor (do you sell things on eBay?) and about maximizing miles with business cards. If you do have an LLC or business, it’s foolish if you aren’t running expenses through a rewards card.
I applied for the Chase Ink Bold (Noob Ink Bold Review) and earned 50,000 very valuable Ultimate Rewards Points. The Ink Bold is the number 1 business card option out there, especially if you already have the Sapphire or Freedom. It’s also possible to get a Chase personal and Chase business card on the same day. You will most likely be automatically denied for the second card applied for, but that’s nothing a reconsideration phone call won’t fix.
Perk Alert: When you apply for a business card, the credit limit and account history go toward the business credit score. This means your personal credit score is only taking the very minimal 2-5 initial inquiry ding to your credit. This allows your personal credit limit and score to be leveraged for more rewards cards. Yeah, buddy.
Tip: Citi Bank is getting stingier approving people as sole proprietors, so buyer beware.
time in between apps
It is best practice to spread out your app parties every 90-95 days; but you should be monitoring your credit and if it hasn’t bounced backed in 90-95 days, then wait another month. Protecting your credit is vital. The 90-95 day rule allows you the time needed (most likely) for your new credit accounts to age, minimizes the risk of being denied for too many recent inquiries, and provides a structured guideline.
I also stagger my wife’s and my app parties so that I’m not trying to meet minimum spends out the wazoo. Plus, it’s nice to spread out the fun.
wrap it up
I usually apply for 3 or more cards at a time. I know that sounds crazy to some, but there are people out there who are much more agressive than this NOOB. But by keeping my credit card apps at 3-5 every 90-95 days, it keeps me open to apply for any BIG specials that may present themselves.
NOOB TIP: Don’t apply for rewards card with minimum spends that you aren’t comfortable meeting and ALWAYS know your credit score before applying.
Throwing app parties has allowed my wife and me to travel to destinations that we wouldn’t be able to afford without miles and points. AND there is nothing special about us. We just monitor our credit, pay our bills on time, and just try to be disciplined with our finances. If you do this, you too can rake in some HUGE bonuses and put yourself in a position to travel the WORLD for pennies, all while protecting your credit and keeping yourself open for any new special offers that may come your way.
Don’t hesitate to email me if you have any app party questions.
— Noob Master