You may just be wanting to dip your toes in the water. That’s fine. However, what we’re going to talk about today is jumping right into the waters of free travel by getting approval for multiple credit card sign up bonuses.
Those who have been doing applications for a long time know the value of the same day credit card application strategy.
What is the same day credit card application strategy?
Let’s say a person has several cards on her ‘to apply list’. They want a Chase card, an American Express card, and a Citi Card.
They could apply in moderation.
- Month one they apply for a Chase account.
- Month two they apply for an American Express plastic.
- Month three they apply for a Citi credit card.
What may happen, depending on your credit score and credit history, is that when you sign up for your AMEX card, they may wonder why you want another card when you just applied for a Chase account last month. Citi might wonder why you want another card when you just got an AMEX and Chase account.
However, you could do all your applications in one day:
On the same day you apply for a Chase, AMEX, and Citi card.
Why would anyone do that?
When these companies do a credit pull, they won’t see your other applications (because they’ll all be processing it on the same day). In addition, if you apply for two cards with the same company (not recommended with Chase, but it can work) you only get one credit pull with that company.
If you signed up for two American Express Cards, two Citi cards, and two Chase cards in one day, you’d only end up with three credit pulls and six credit card approvals. In addition, you wouldn’t be as likely to be denied for too many credit inquiries. You should have a higher credit score when you apply for each card because the impact of your first two applications haven’t been applied yet to your score.
Man of a Thousand places talks about how he applied for 13 credit cards in a single day. The result was 550,000 miles worth of sign up bonuses.
The primary downside is the required minimum spend. If you get three cards that have a $2,500 minimum spend, then you’ll need to spend $7,500 in 90 days. That may be possible for some of you, but not for all.
Anyway, this hack is not new by any means, but in case you’d never heard of it, I thought you might like to know that sometimes it’s better to get all your applications out of the way in one day.
The Frugal Travel Guy even suggests a mythical credit card churn schedule for 2012 so you can see how this type of approach would pay off over the year.