Comments on: Can I just keep applying for credit cards from amex after getting an instant-approval?

Question: Can I just keep applying for credit cards from amex after getting an instant-approval?

yeoz — Mon, 12 Jun 2006 20:44:54 -0800

So, I applied for an AmEx credit card online, and got instant approval and a 10k limit. On a whim, I decided to apply for another amex credit card immediately after, and got another instant approval for another 10k limit card. Can I keep doing this and apply for more of their credit cards and keep getting instantly approved? Does this sound like a really bad idea to anyone else?... It's so tempting though...

My intent is to combine (or reallocate) the limits on to one card in the end... And, my understanding is that the inquires on the credit-reporting-agencies will combine, assuming they are all done on the same day...

15 minutes left and ticking in the day for me :P

By: Mr. Six

Mr. Six — Mon, 12 Jun 2006 20:52:15 -0800

And, my understanding is that the inquires on the credit-reporting-agencies will combine, assuming they are all done on the same day...

Why do you assume this?

Multiple inquires over a 14 day period by auto dealers or mortgage companies are counted as one inquiry. Multiple inquires by credit card companies or consumer loans will deduct 2 or more points from your score for each inquiry. [via]

By: zsazsa

zsazsa — Mon, 12 Jun 2006 20:52:58 -0800

The people on boards like the FatWallet finance forum call this sort of thing an App-O-Rama. The idea is to apply for a ton of credit cards all at once, since the credit inquiries don't show up and ding your credit rating until later. I don't believe, though, that the reports of hard inquiries on your report will combine.

By: dirtynumbangelboy

dirtynumbangelboy — Mon, 12 Jun 2006 21:03:23 -0800

Plus, having 'too much' (however they calculate it) credit can be detrimental to your score.

By: nakedcodemonkey

nakedcodemonkey — Mon, 12 Jun 2006 21:05:20 -0800

Don't count on unlimited acceptances. I recently discussed this with another credit card issuer. That company's policy is to automatically turn down more than 2 apps within the same 30 day (or maybe it was 60 days?) period. AmEx probably does something similar.

By: growabrain

growabrain — Mon, 12 Jun 2006 22:02:36 -0800

what do you need all that credit for? the bad idea is if one day you use it and fall into credit card hell.

By: intermod

intermod — Mon, 12 Jun 2006 22:07:20 -0800

Is it really a credit card? The classic AmEx card is a charge card, not a credit card.

By: pdb

pdb — Mon, 12 Jun 2006 22:13:59 -0800

Why on earth does one human being need more than, say, $2K worth of credit? I'm sure you could do what you say, but what would you do with all that credit, except take the first steps towards an eventual bankruptcy filing?

Don't do it. There's no need. And the dangers are too great.

By: Civil_Disobedient

Civil_Disobedient — Tue, 13 Jun 2006 04:17:50 -0800

I don't understand why you wouldn't simply call AmEx and ask them to up the limit on one card? If you need extra stuff to fill your wallet, I've heard photos come in wallet sizes. :)

By: yeoz

yeoz — Tue, 13 Jun 2006 04:39:41 -0800

I don't plan on using more then a single-digit-percentage of my total credit line at any time (and, yes, they are credit cards, I have an amex credit card already). My overall credit limit was fairly crappy before I got these two cards -- and I just wanted them to raise my limits so that I would have more room to manage my overall utilization. (Myfico.com says a lot of things about utilization. I'm probably not qualified to make decisions about this for myself. :P) Yes, I could've called AmEx and asked for a credit limit increase, but, I doubt I would've gotten the same amount as what I just got...

By: grandstand

grandstand — Tue, 13 Jun 2006 05:09:45 -0800

American Express may just pull one of those cards from you--what they give they can take away. read the terms & conditions and you'll find that they pretty much give themselves the right to change or terminate your account at any time, so doing applying over and over probably won't do you much good.

By: mkultra

mkultra — Tue, 13 Jun 2006 07:45:55 -0800

While there are plenty of reasons to want more than a $2k credit limit, if you seriously think you need more than $10k of credit yet don't understand how to manage it properly, you need to seriously re-think your approach.

Anyone who tells you that opening a new credit card you won't use will help your credit score is full of it. You want better credit? Pay your bills. That's it. Use your credit card regularly, but sparingly. Then pay it off when the bill comes.

There is no Step 2.

By: yeoz

yeoz — Tue, 13 Jun 2006 07:50:26 -0800

I already pay my bills in full each and every month. :(

By: kindall

kindall — Tue, 13 Jun 2006 08:10:08 -0800

Your best credit scores reportedly come from having about $10,000 in available revolving credit, not too high utilization on any one card, and making regular payments on all of them (that means using all the cards regularly, if only to buy gas).