Credit Card Issuers Cracking Down on App-O-Ramas
The word on the street is that credit card issuers have wised up and started cancelling the accounts of individuals that stage an App-O-Rama. In case you’re not familiar with the term, an App-O-Rama refers to applying for a bunch of credit cards in rapid succession in hopes of getting them all approved before the credit inquiries show up on your credit report. This is generally viewed as an effective way of loading up on credit card signup bonuses as well as 0% credit card offers.
Frankly, I don’t blame them…
If I were a credit card issuer and I saw someone apply for eight of my cards in rapid succession, as one FatWalleter did shortly before his accounts were cancelled, I’d think that they were either: (1) trying to harvest a bunch of promos, (2) in financial trouble and trying to load up on credit before their world comes tumbling down, or (3) stealing someone’s identity. In any case, I wouldn’t view them as a valued customer.
[Source: FatWallet via Consumerist]
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Even if the credit card companies didn’t crack down on it, the people who do that are still negatively affected — every time you apply for a card, your credit report is checked, and applying for that many new cards in succession will majorly ding your credit score. It’s a good thing the card companies are making it more difficult, though even if they weren’t, people will still be punished for it.
Comment by Emily @ Taking Charge — Apr 18th 2008 @ 4:15 pmI agree. Applying for so much credit all at once can really do a number on your credit score.
Comment by Experts on Credit — Apr 25th 2008 @ 3:13 pmYeah, but the effect is relatively short-lived.
Comment by admin — Apr 25th 2008 @ 3:16 pm